What a quarter that was! The US stock market first reached a new high in October and then dropped 10%. It bounced around for a while. And then in late December, it dropped again -- this time more than 15% off its peak. By some measures, it actually dropped 20% briefly (intra-day) … [Read more...] about Investing amid volatility: My 4Q update
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During the holidays, I had some idle time and I re-read parts of Jason Zweig’s 2007 book, Your Money & Your Brain. It’s a good book with lots of interesting anecdotes. It was also one of my early reads into investor psychology. In one section appropriately named Fighting Your … [Read more...] about How I keep my long-term investing outlook?
The other day, I came across an interesting, albeit hypothetical, auction scenario: Ten companies were bidding for the right to drill in a land tract. Each had done a geological survey of the land and privately assessed how much oil is in there. These surveys were known to be … [Read more...] about Anchor on a business’s value, not its price
RealtyShare, a crowdfunded real-estate investing operation, just shut down its business a few weeks ago. Hopefully, everyone who invested through them will be fine. The company said they will keep skeleton staff to manage existing properties for investors but won’t offer any new … [Read more...] about How am I investing in commercial real-estate?
If there are just two questions to ask about a CEO, ask these: Does he run the business well? Is she good in utilizing shareholders’ capital? The first question requires no explanation -- this is obviously any CEO’s number one task. The second question is a bit more complex. We … [Read more...] about Grading CEOs as capital allocators
People fear double-digit stock market declines. I see them as opportunities. The US stock market has been more volatile lately. And my portfolio is better off because of this volatility. I just finished reading Nassim Taleb’s book Antifragile. He has got me thinking about my … [Read more...] about Volatility is good for my investments
Last year in November I wrote a blog post (Why I Stay Invested in Stocks?) about some investors (they were my friends) who were convinced that a market crash was imminent, and they were waiting on sidelines with cash to invest. Well, this is nearly the end of 2018 and that crash … [Read more...] about Why that market crash didn’t happen?
The median tenure of public company CEOs is about five years . They come and go. Many of them are paid handsomely to run a company – in either cash or stocks that vest in 3 to 4 years. They’d own some shares while they work for the company and then cash out as they … [Read more...] about My investments with founder CEOs
Is this the right time to invest in the stock market? The answer is yes – it’s always a ‘yes’. And I am not being facetious! The best time to invest in stocks is … when you have money to invest. Of course, some cash saving is required for near-term needs. But if you have money … [Read more...] about There is never a bad time to start investing
This is not a panic post. I don’t know when the next market downturn would happen. I don’t care to know either. My investing is not based on predicting future events. As Howard Marks wrote once, "taking bold actions based on forecasts of things that are uncertain isn’t just … [Read more...] about Are you prepared for stock market winter?