KIM: For long-term investment treats, don’t be tricked
Don’t let the excitement and envy of somebody else’s hitting an improbable jackpot blind you to the cold, hard, mathematical probabilities of long-term investment success.
Investing Column
Articles
SKARBECK: Recovery will require sacrifices on all fronts
While Wall Street bankers are the chosen target of the protesters in New York City’s Zuccotti Park, the breadth of the movement clearly is a sign of citizens’ frustration with the economic and political landscape.
KIM: Tumble in third quarter spurred by investor panic
Sentiment has been crushed. Some investors have lost faith, thrown in the towel, and abandoned the stock market.
SKARBECK: Gain fortitude by knowing what companies you own
It is essential to understand that shares of stock represent the fractional ownership of an operating business.
SKARBECK: Don’t wait for the robins when making investments
As Warren Buffett counseled in October 2008, “If you wait for the robins, spring will be over.”
KIM: Think outside the (style) box to improve returns
The “Morningstar Style Box” was introduced by the Chicago-based research firm in 1992 to help investors and advisers determine the investment style of a fund.
KIM: Predicting market’s swings is both futile and expensive
Wouldn’t it be nice to be smart enough to sell at the top and nimble enough to buy back in at the bottom?
SKARBECK: Global investors should heed exchange rate trends
Exchange rates are determined, at least in theory, by purchasing power parity.
KIM: MainSource story shows community banks’ volatility
First, by and large, community banks did not participate in the activities that led to the financial crisis.
SKARBECK: Market volatility should be seen as an opportunity
To a long-term, value-oriented investor, volatility should be viewed as opportunity. The crazy prices that are occasionally offered up by a roller-coaster market in periods of uncertainty allow for the purchase of undervalued securities.
KIM: Managers with skin in game most likely to perform well
It seems perfectly logical that you want to invest with a manager or fund where the manager has a significant amount invested alongside you.
SKARBECK: Regulators aren’t so bad, and we really need them
while the cost of regulatory compliance can be annoying, they do serve a vital societal function—consumer protection.
KIM: Contrarian mind-set is key to unearthing opportunities
For investors, the time to be nervous is when there’s nothing but blue skies on the horizon. The time to be opportunistic is when there’s blood running down the street and the high-paid talking heads are screaming that the sky is falling.
SKARBECK: Global economy extends beyond usual suspects
the global economy extends to many regions and countries that, while smaller in economic stature, are often overlooked.
SKARBECK: Getting out of a hole requires digging by all
We live in a fantasy world if everyone thinks we need to cut back on spending unless it affects them.
SKARBECK: Businessws with ‘moats’ more likely to succeed
In economic terms, consider a business that has a “sustainable competitive advantage” that serves as a moat against the competition. A business that can stave off the competition is likely to produce attractive profits.
SKARBECK: Lackluster market forecast favors large U.S. stocks
One thing that does stand out is that, on balance, these returns are not exactly going to get investors to sit up and get excited.
SKARBECK: Finding a bright spot in dismal housing news
One analyst even declared that, relative to disposable income, housing is more undervalued than at any time in the last 35 years. So it is an attractive time to buy a house if you plan to be a long-term owner.
SKARBECK: Debt-ceiling issue has no easy solutions
The public must understand that the arguing in Washington over raising of the debt ceiling is just political posturing.
SKARBECK: Microsoft stuck in 1990s when acquiring companies
Microsoft Corp.’s acquisition of Skype for $8.5 billion, announced May 10, continues a long history of a lack of price discipline in Silicon Valley.