What if stocks experience their third separate bear market in under twenty years? What would that do to the psychology of investors? For the purpose of this exercise, please allow me to reach a little (I’ll explain later). If the S&P 500 were to fall 25% from its peak over the next twelve months (~16%…
September 2015
Leaving Your Comfort Zone
“In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time – none, zero.” Charlie Munger I can think of few people I would rather emulate than Charlie Munger. So in an effort to walk the walk, I’m challenging myself to read things that…
The Great Jim Simons
I want to share a terrific video of Jim Simons speaking to an audience at MIT. Simons is a mathematician, hedge fund manager and now philanthropist so it’s no wonder that his firm is called Renaissance Technologies. In this talk, Simons shares stories about riding a scooter from Boston to Bogota, getting fired from the Institute…
Munger On The Circle Of Competence
I always enjoy taking a few minutes to flip through Poor Charlie’s Almanack. I found the following passage particularly interesting and wanted to share it (Emphasis mine). Munger discusses the importance of “The Circle of Competence,” which helps explain what has fueled Berkshire’s unrivaled performance over the last several decades. The cash register was one…
Have Bonds Failed?
The S&P 500 just experienced its worst month since September 2011, falling 6.3% in August. With such a steep decline, the investor in a classic sixty/forty portfolio might have expected bonds to provide protection to their portfolio. The negative 0.08% total return for the Barclays Aggregate Bond Index might lead them to think there’s something…
Volatility Brings Out The Worst In Us
The following exchange is what often occurs on Twitter, especially when markets are volatile and account balances are going in the wrong direction. “Why are you yelling at me?” “Because we have different views on how to make money in the market!!” Social media has changed the game for the better. Unfortunately there will always…
