Jack Bogle, the inventor of index mutual funds, said just weeks before his death on Jan. 16 at age 89 that index funds had become the “most successful innovation in modern financial history”.
Focus on what you can control and try not to fret about what you can’t. Extreme short-term volatility can be a gift to long-term investors, if you let it.
The problem with anchoring is, it fails to recognize the extreme volatility inherent in stocks.
With college costs escalating rapidly, reducing future debt by starting to save as much and as soon as you can for a child’s college education is vitally important.
You might not realize it, but when you decided to invest in stocks, you bought a ticket to ride an emotional roller-coaster.
Cannabis may be the wave of the future, but that doesn’t mean the stocks are a good investment.
The fact remains that both the stock market’s advance from the March 2009 lows and the economic expansion are long in the tooth.
When a company raises capital to fund its growth by selling stock to the public, part of the bargain is that it incurs obligations to disclose certain information to investors that is reliable.
The Federal Reserve Bank of New York has stated that “misaligned incentives contributed greatly to the financial crisis.”
If the Purdue degree is valuable and leads to a well-paying job, Purdue and the student both benefit. If not, Purdue absorbs some or even all the financial pain.
You can bet if there are narcissistic tendencies locked inside a lucky founder/CEO, fortune, fame and power will set them free.
the FAANGs have become “one-decision stocks”—stocks you should buy, no matter how expensive, and hold forever.
Not only are humans highly emotional and lacking in self-control, they are influenced by all sorts of biases and supposedly irrelevant factors.
A shrinking-but-still-significant population of public companies provides quarterly “guidance” to analysts, which is essentially management’s own estimate of future earnings.
“Salt-of-the-earth” people of modest means can still manage to amass multimillion-dollar estates, through discipline and the miracle of compounded interest.
Both hockey coaches and investors need to accept higher volatility in trying to turn probable losses into possible wins.
There is a “presidential cycle” for stocks, a pattern coinciding with various years of a presidency.
Referring to picking stocks, Warren Buffett famously said, “Price is what you pay; value is what you get.” As it turns out, the same can be said for betting the Derby.
We hope/believe much of this talk is “saber-rattling” and posturing ahead of negotiations that will occur between the United States and China in the coming weeks.