Michael Batnick

Factors Affecting the Buying and Selling of Equity Securities

In 1955, as the Dow Jones Industrial Average was at prices not seen since 1929, a nervous Congress called a hearing to discuss “Factors affecting the buying and selling of equity securities.” They interviewed the father of value investing, Benjamin Graham, to get his take on why the market climbed so fast, where it might…

A Hilarious Commentary

Earlier today, Goldman Sachs reported just awful earnings. In fact, this was the worst quarter of the Blankfein era. This morning, the Wall Street Journal (MoneyBeat) did a really cool live analysis of what was Goldman experienced in Q1. Below are some of the points from their analysis (emphasis mine). Goldman Sachs just had its…

The Man in The Arena

This Saturday marks the 106th anniversary of an amazing speech Teddy Roosevelt made in Paris on April 23rd, 1910. Below is an excerpt in which Roosevelt has some words for those who comment from the stands without having played on the field. It is not the critic who counts; not the man who points out…

The Perfect Asset Allocation

The arrival of the auto industry changed the way we lived, however like any new technology, it did not come without a cost. In 1917, Detroit had 65,000 cars on the road, which resulted in 7,171 accidents and 168 fatalities.  Advances in financial technology has exploded over the last few years, and like the birth…

Lifelong Learning Is Where It’s At

Sam Hinkie was an undisputed failure as General Manager of the Philadelphia 76ers.  But today he went out with class as he penned a beautifully written letter, chock full of wisdom. In May of 1969, a 38-year-old Warren Buffett sat down at a typewriter to inform his investors that he was closing his fund (then…

Reliable Indicators

Nothing works 100% of the time in investing, but the following phrases are pretty reliable indicators of who you can safely ignore: “We’re in the _____ inning” “We’re at a crossroads” “Something has to give” “1929” “Too far, too fast” “Eventually, the chickens will come home to roost” “The canary in the coal mine is…

About Those Trading Quotes..

If you want to lose weight, eat less and move more. If you want to make money in the stock market, cut your losses short and let your winners run. But neither losing weight nor making money is as simple as aphorisms make it seem. Not even Jesse Livermore, who is probably the most widely…

Before You Trash Smart Beta…

It’s probably no surprise that the S&P 500 high quality index has outperformed the S&P 500. But what is surprising, to me anyway is that the S&P 500 low quality index has also outperformed the S&P 500 (as well as the high quality index!). How is this possible? It has everything to do with the…

There’s A Large Spread Between Large And Small

The S&P 500 always gets the majority of the attention and understandably so, as these 500 504 stocks comprise ~80% of the total U.S. market cap. But something interesting recently happened in the Russell 2000, which represents just ~8% of the total U.S. market cap. The Russell 2000 has made no progress over the past…

Eating Your Own Cooking

Wouldn’t you love to know how people actually invest. It’s one thing to follow somebody on Twitter or to read their blog, but at the end of the day we have no way of knowing if that person actually practices what they preach. I want to lay my cards on the table, and share how…