About a year ago, I wrote a blog post wishing that all long-term investors get at least one bear market in their investing journeys. In that post, I made the case that a bear market is a blessing in disguise, rather than a curse, for all patient investors. Here we are one year … [Read more...] about A bear market in rear view
Whether we like it or not, we investors are always making bets. We invest our capital with the expectation that down the road we will be able to recover all of it plus some. But since the future is unknowable, we implicitly make a bet every time we invest. Specifically, … [Read more...] about The odds of making money in stocks
This stock market crash is looking more like a short-but-deep correction than a conventional bear market. Since its March 23rd trough, the market has been relentlessly going uphill. As of today, the S&P 500 is just about 12% off from its prior peak level. Not that I am … [Read more...] about Are we in a short correction?
Things have settled down a bit in the stock market. Since that nasty crash in March, stocks have mostly been on an upward trend. So, has the stock market already bottomed out? Or would there be another leg down from here? I can’t say. I admit it would be a useful thing to know … [Read more...] about When’s the market bottoming?
At the Markel’s shareholder meeting in Omaha in June, someone from the audience posed this question to the company management: “I met a very large international money manager last night for dinner and he warned me that now is not the time to invest in US stocks. What do you think … [Read more...] about Gratuitous advice with no accountability
2018 was a brutal year for individual stock investors. Following the relatively calm performance in 2016 and 2017, the US stock market in 2018 was marked with high volatility. It went down by 10% in the first quarter, and then gradually recovered. It dropped again in the fourth … [Read more...] about Investor anxiety
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
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
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?
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?