As the play, The Merchant of Venice, unfolds, all of Antonio’s ships sink, his business collapses and Shylock demands his pound of flesh.
A small percent change in total returns achieved both before and after retirement can make a huge difference in your standard of living after retirement
The rise of passive investing and systematic investing may lead to greater stock market inefficiency. It will have little negative impact on active investors.
The behavioral tail can wag the statistical dog
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.
Even with overly optimistic earnings estimates companies regularly ‘beat’ the estimates. What gives?
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’
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.
The main benefit of optimism is resilience in the face of setbacks
Investing based essentially on the business cycle outlook is a fools’ game.