In July 1999, Warren Buffett gave a speech to business leaders in Sun Valley, Idaho. Back then, the U.S. stock market had been on a tear. Understandably, many attendees were very optimistic about their businesses’ prospects. Undaunted though, Buffett went on to make the argument … [Read more...] about When do I exit stock positions?
Investing Mindset
How I approach investing
Be mechanical about your investing approach
As I have written multiple times in prior posts, our gut instincts, friends’ views, media reports, and most expert opinions are really not that useful when it comes to investing. We, investors, consistently underperform even the ordinary index funds by as much as one-third due to … [Read more...] about Be mechanical about your investing approach
Are moats really lame?
Elon Musk, Tesla’s CEO, said last month that economic moats are lame: “If your only defense against invading armies is a moat, you will not last long. What matters is the pace of innovation. That is the fundamental determinant of competitiveness.” A few days later, I was in … [Read more...] about Are moats really lame?
Revisiting the lost decade of U.S. stocks
If you were following business news in 2010, you must have come across one or two headlines bemoaning America’s “lost decade”. Between 2009 and 2012, there were many discussions in the business media and many columns were written in the press on this subject. How investors have … [Read more...] about Revisiting the lost decade of U.S. stocks
Rise above dividends!
Some investors are fascinated with dividend paying stocks. They invest in them exclusively. Often times, they are looking to generate income. Some investors also believe that dividend paying stocks are safer to invest in. There are investment services and portfolio managers who … [Read more...] about Rise above dividends!