If you’re familiar with Warren Buffett and Ben Graham, then you likely know “Mr. Market”… The mythic being came to life in 1949 in Chapter 8 of Graham’s classic book The Intelligent Investor. And he has matured over the past 72 years through Buffett’s repeated references. One thing is clear… Mr. Market is emotionally volatile. …
Mr. Market Is Still Emotional… But He’s Not as Crazy Read More »
Believe it or not, signs of economic slowing were once viewed as bad news for stocks. But “Dr. Doom” changed that with one legendary prediction on August 17, 1982… You see, former Salomon Brothers Chief Economist Henry Kaufman – known by the nickname “Dr. Doom” – had previously projected that deficit spending and a strong …
Over the years, Warren Buffett has said many great things about his investing principles. But the legendary investor’s best quote might be about one of his biggest blunders… I’m talking about his early 1990s investment in USAir. In his 1994 letter to Berkshire Hathaway (BRK) shareholders, Buffett simply attributed the blunder to “a case of …
I’m not even finished reading it yet, but I’ve found a new favorite investment book… It’s Alexander Hamilton, published in 2004 by author Ron Chernow. Now, I know what you’re probably thinking… “But Marc, that’s a biography.” Yes, it’s true… Chernow is a Pulitzer Prize-winning biographer. And this particular book served as the inspiration for …
You’d think established measures of risk would meet a basic rule of investment prudence… But they don’t. The indicators are based on data showing how volatile a stock was in the past. So as a result, they only work if you assume that past performance guarantees future results. That’s a bad assumption… I detailed why …
Stop me if you’ve heard this before… Past performance is no guarantee of future results. It’s easy to support recommendations with pretty performance charts and impressive statistical studies. But no amount of mathematical analysis or graphic artistry can get around the fact that companies, markets, and the world can change. So as investors, we’re primed …
Why It’s Risky to Use Traditional Risk Statistics Read More »
My wife and I bicker about real estate… She wants to buy a house in New York City to earn rental income. I’m afraid to own just a single property for that purpose… If the tenant can’t (or won’t) pay rent, we’d be in trouble. This is especially worrisome in New York, where we live… …
A Major Acquisition Adds Comfort to This REIT’s 5.7% Yield Read More »
Bulls make money, bears make money, and pigs get slaughtered… That’s the No. 1 rule of investing, according to former hedge-fund manager and CNBC commentator Jim Cramer. And countless others have recited the old saying over the years. (See, for example, here and here.) But today, I’m going to show you why that’s not always …
Naïve Pigs Get Slaughtered… Prudent Hogs Make Money Read More »
Don’t underestimate pig smarts… Purdue University’s Dr. Candace Croney once taught pigs to play video games. And the University of Bristol’s Dr. Michael Mendl showed that pigs can deceive one another. In short, pigs aren’t as dumb as you might first believe… They can think and learn. The humble pig even found praise in the …
The First Step in Becoming a ‘Prudent Yield Hog’ Read More »
If you’ve never eaten at a Potbelly Sandwich Shop, you’re missing out… A colleague introduced me to the Chicago-based fast-casual restaurant chain during a business trip to the city years ago. At first, I balked at the long line… I just wanted to get a quick bite to eat. But I’m glad we were patient. …
I Love This Company’s Sandwiches, But Not Its Stock Read More »
