Nuggets of Investing Wisdom

Nuggets of Investing Wisdom

A website for serious investors in common stocks

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Quantitative vs intuitive in investing

  • by Rodney Smith
  • Posted on August 15, 2022August 15, 2022
  • Part 2: Human Foibles and Investment Decision Making

Human decisions affecting the future, whether personal or political or economic, cannot depend on strict mathematical expectation, since the basis for making such calculations does not exist.

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The economy and the stock market

  • by Rodney Smith
  • Posted on August 8, 2022August 8, 2022
  • Part 1: The Field of Play

We do not have, never have had, and never will have an opinion about where the stock market, interest rates, or business activity will be in a year from now

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The role of ETFs in a stock picker’s life

  • by Rodney Smith
  • Posted on August 1, 2022August 1, 2022
  • Part 1: The Field of Play

A few years ago I realized we needed a plan in the event I predeceased my wife

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Negative free cash flow can be desirable

  • by Rodney Smith
  • Posted on July 24, 2022July 24, 2022
  • Part 6: The Hallmarks of Superb Businesses

Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes

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The best number of stocks to own

  • by Rodney Smith
  • Posted on July 19, 2022July 19, 2022
  • Part 7: Building and Managing a Portfolio

Too much of a good thing can be wonderful

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A time of maximum pessimism

  • by Rodney Smith
  • Posted on July 10, 2022July 10, 2022
  • Part 7: Building and Managing a Portfolio

So we search for those things that other people are selling and then if the problem or adverse outlook is temporary we buy them and hold them patiently for years until the public changes its mind.

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Scatter shot estimates of fair value

  • by Rodney Smith
  • Posted on July 3, 2022July 5, 2022
  • Part 7: Building and Managing a Portfolio

A group with a high anchor were prepared to pay three times as much for the same wine as a group with a low anchor

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Cut your losses is confused advice

  • by Rodney Smith
  • Posted on June 26, 2022June 26, 2022
  • Part 2: Human Foibles and Investment Decision Making

Your baggage is what you already own, and it gets in the way of excellence.

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Risk when markets are down

  • by Rodney Smith
  • Posted on June 19, 2022June 26, 2022
  • Part 1: The Field of Play

Here were financial people who could seriously consider that stocks are less safe because they have declined in price than they were after they had advanced in price

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The problem with stock screening

  • by Rodney Smith
  • Posted on June 12, 2022June 12, 2022
  • Part 7: Building and Managing a Portfolio

What is worse, it directs the investor to a list of companies that may be completely out of tune with today’s economy

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