The rise of passive investing and opportunities for active investors
The rise of passive investing and systematic investing may lead to greater stock market inefficiency. It will have little negative impact on active investors.
Does Wisdom of Crowds apply to earnings estimates, price targets, value estimates and stock prices?
The behavioral tail can wag the statistical dog
Understanding Ben Graham’s Principles of Operation
The various Principles of Operation that follow are not things I have dreamed up. They are frequently quotes or exact formulations or wording from Benjamin Graham, Warren Buffett, John Templeton, Philip Fisher, Peter Lynch, John Neff, Maynard Keynes and others.
Analysts’ reports and the estimate revision game
Even with overly optimistic earnings estimates companies regularly ‘beat’ the estimates. What gives?
The personal qualities successful investors need to cultivate
What mattered most was confidence in one’s own judgment, from which would flow the Kiplingesque cool to keep one’s head ‘when all about you are losing theirs’
What you need to know about bubbles
I am not attuned to this market environment, and I don’t want to spoil a decent record by trying to play a game I don’t understand just so I can go out a hero.
Do optimists make better or worse investors?
The main benefit of optimism is resilience in the face of setbacks
The pitfalls of a sector rotation strategy
Investing based essentially on the business cycle outlook is a fools’ game.
The cornerstone of investment success
Is buying with a margin of safety really the closet practice of market timing?
An unconventional view of cash reserves
The cash in the portfolio may be enough to take advantage of the opportunity. Or it may not be enough. It doesn’t matter. The investor is in the delicious position of comparing the new opportunity with all other holdings in the portfolio.