Common stocks, bonds, active investing and the power of compounding
Almost all investors will know about compounding. But, it’s hard to get through your head what it can really do.
bonds
The price of risk in equity markets
Mr. Market demands a very high expected return before he will invest in stocks. Whereas Mr. Bond suffers money illusion.
Investment strategy – the best defense is a good offense
And if a person sets out to make profits from security purchases and sales, he is embarking on a business venture of his own, which must be run in accordance with accepted business principles if it is to have a chance of success.
Secure your future with common stocks
Businesses retain earnings, with these going on to generate still more earnings–and dividends, too.
Why stocks outperform all other asset classes
A major reason is that businesses retain earnings, with these going on to generate still more earnings–and dividends, too
I differ with Cliff Asness about Risk Adjusted Returns
Once you own shares in a company, the investment risk you face is a risk that undermines the value of what you own
Total real return investing
You should wish your earnings to be reinvested if they can be expected to earn high returns.
The relationship between stock prices and interest rates
Any prediction based on models can be overwhelmed by what happens in the real world
My thoughts on asset allocation
They looked at the allocation between stocks, bonds and cash. They found that over 95 percent of the funds’ returns came from their asset allocation.
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