I prefer investing in established well-run businesses that have defensible business models. Even though some of them are technology companies, I invest in them not because they are considered tech but because they have dug some level of economic moat around their businesses. You … [Read more...] about Investing in startups through SoftBank
One of my all-time favorite authors on investing is Howard Marks. He is a practitioner (not an academic) but also has a way with words. It’s not just me—Marks’ memos are widely read. His first book, The Most Important Thing, was a best-seller. His memos—which he regularly … [Read more...] about An opportunity to invest in real assets
A lot of investor underperformance comes from them trying their utmost to avoid seeing losses. Emotionally, losses hurt twice as much as gains feel good. But there is no way to avoid seeing short-term losses in long-term investing. It’s inevitable for a long-term investor to see … [Read more...] about A gauge for my portfolio
A couple of weeks ago I was at our local library checking out the Barron’s weekly. They had their annual roundtable issue out. Every year in January, Barron’s invites a few successful well-known money managers to gather around a table and discuss their thoughts for the new year. … [Read more...] about Weekend worrying about the economy
Last week, John Rekenthaler of Morningstar wrote an article on worst alternative investments of the decade. Market-neutral funds were among his top-five worst investments. Average annual return from the funds in this category was 0%. He wrote this, tongue in cheek: … … [Read more...] about Market neutral investing
It was some time in 2011 if I remember correctly. I had tuned to my local NPR station at lunch time. A financial advisor couple was getting interviewed. They had just released a new book on financial planning. It was a pleasant discussion. They seemed genuine. They also appeared … [Read more...] about Don’t take investing advice from people you don’t know!
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?
I realize that this sounds silly. Individual investors and university endowments don’t play in the same league! Still there is no harm in studying other investors’ portfolios. Even those that are managed professionally. For perspective, current market value of Yale University’s … [Read more...] about Benchmarking my portfolio against Yale’s endowment
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?
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!