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?
InvestorBehavior
Anchor on a business’s value, not its price
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
Why that market crash didn’t happen?
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?
Are you prepared for stock market winter?
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?
Why does the stock market mock us?
Sometimes it feels like the stock market is mocking us—intentionally doing the unexpected. When we invest new money, the stock market promptly falls as if it's punishing us. Other times, it jumps up after we had sold some shares. If you are an investor, you will encounter this … [Read more...] about Why does the stock market mock us?