Nuggets of Investing Wisdom

Nuggets of Investing Wisdom

A website for serious investors in common stocks

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Part 1: The Field of Play

Is the Federal Reserve driving the stock market?

  • by Rodney Smith
  • Posted on February 7, 2021February 7, 2021
  • Part 1: The Field of Play

While the Fed had no explicit mandate to focus on the stock market, the effects of the run-up in prices seemed to me a legitimate concern

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The impact of Millennials on the stock market

  • by Rodney Smith
  • Posted on December 6, 2020December 6, 2020
  • Part 1: The Field of Play

Today the Millennial generation is engaged in earning, saving and investing.

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Let’s cut to the heart of how risk and uncertainty impact diversification

  • by Rodney Smith
  • Posted on November 9, 2020November 10, 2020
  • Part 1: The Field of Play

Diversification is inadequate as a risk management technique and too primitive for the new environment of volatility and uncertainty.

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Active investing is the only way to superior returns

  • by Rodney Smith
  • Posted on October 25, 2020February 22, 2021
  • Part 1: The Field of Play

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

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The rise of passive investing and opportunities for active investors

  • by Rodney Smith
  • Posted on October 18, 2020February 6, 2021
  • Part 1: The Field of Play

The rise of passive investing and systematic investing may lead to greater stock market inefficiency. It will have little negative impact on active investors.

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The joy of higher return with no more risk

  • by Rodney Smith
  • Posted on May 18, 2020November 10, 2020
  • Part 1: The Field of Play

If we calculate the value of a common stock to be only slightly higher than its price, we’re not interested in buying

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Many investors just don’t understand the risk/reward trade-off

  • by Rodney Smith
  • Posted on May 10, 2020May 10, 2020
  • Part 1: The Field of Play

Take the probability of loss times the amount of possible loss from the probability of gain times the amount of possible gain.

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The great investors and extreme volatility

  • by Rodney Smith
  • Posted on March 10, 2020March 10, 2020
  • Part 1: The Field of Play

Be prepared financially and psychologically to live through a series of bull markets and bear markets because in the long run common stock will pay off enormously and the next bull market will carry prices far higher than this one

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The conventional view of market efficiency is badly mistaken

  • by Rodney Smith
  • Posted on March 2, 2020January 15, 2021
  • Part 1: The Field of Play

Prices in the stock market are never a reliable guide to the fair value of a stock.

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Thoughts on beating the market

  • by Rodney Smith
  • Posted on January 5, 2020November 22, 2020
  • Part 1: The Field of Play

No investment decision should ever be motivated by trying to beat the market. The moment this impulse creeps in, the investor is liable to risk seeking behavior.

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The site has two parts – Nuggets and the Investing Motherlode. Nuggets is a blog. The Motherlode is a rich resource and is only available to Subscribers (free). To subscribe, click on the Login tab or on any link within the Motherlode and fill in the form. You can also subscribe, for free, to a monthly newsletter, Nuggets of Investing Wisdom, right to your inbox.

 

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