One of the most common mistakes investors make comes in the form of overconcentration of their investments in their company’s stock. It’s understandable to want to invest in the company you’ve spent a great deal of time with and...
So far in our investment basics series, we’ve explored the history of investing; how important it is to save (so you have money to invest); how to invest efficiently in broad markets; and why to avoid chasing or fleeing...
In our last piece, we described our marvelous markets, and how to account for their being both robust and random at the same time. Today, we’ll look at how stock pricing works, and why Nobel laureate William F. Sharpe...
In our last piece, we introduced the importance of saving, which is the first of five basics that have served investors well over time. Today, we’ll look at where stock market returns really come from, and why that matters...
In our last piece, we wrote about how recency bias can damage your investments by causing current crises to loom large, while rewriting your memories of past challenges. Recency tricks us into overpaying during heady times, and bailing at...
There were so many big events competing for our attention this summer … said nearly every investor, almost every summer, ever.
We’re not making light of this summer’s uncertainties. Inflation is real, and needs to be managed; we also can’t...
Does it seem like there’s been an extra level of uncertainty lately, threatening your investment plans? Of course, there are always big events going on; that’s the world for you. But today’s brew of geopolitical threats, inflation trends, rising...
Have you been reading the daily headlines—watching markets stall, recover, and dip once again? If so, you may be wondering whether there’s anything you can do to avoid the motion sickness.
If you already have a well-structured, globally diversified portfolio...
Studies have shown that it is highly unlikely investors will be able to exploit market inefficiencies after accounting for the expenses of the effort. If the majority of investors understood the true benefits of a buy-and-hold strategy, some of...
Is rising inflation souring your financial plans? As we covered in our report, “Interest Rates, Inflation, and Investment Strategy,” protecting the bulk of your wealth is mostly about building and maintaining a well-structured investment portfolio with a few anti-inflation...
