Market (In)Efficiency and beating the market
Behavioral inefficiencies are likely the most enduring because human nature has not changed much over time and is unlikely to change much in the future.
Behavioral inefficiencies are likely the most enduring because human nature has not changed much over time and is unlikely to change much in the future.
Ideas based crowd source project to improve Nuggets of Investing Wisdom for everyone
After being retired for 20 years, we have the opportunity of enjoying a much lower tax rate on the same average dollar amount of investment returns. When our investments are passed on to our children there will be no one-time full marginal rate tax to pay.
A high ratio of price to book value, a high price-earnings ratio, and a low dividend yield – are in no way inconsistent with a ‘value’ purchase.
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.
A careful selection of a few investments (or a few types of investment) having regard to their cheapness in relation to their probable actual and potential intrinsic value over a period of years ahead and in relation to alternative investments at the time.
Leaving moderate risk in the dust
If the job has been correctly done when a common stock is purchased, the time to sell it is – almost never
Buffett analyzed companies more subjectively than Graham, and he found intrinsic value in companies, such as See’s Candies, that Graham would not have touched.
Many investors have lost money trying to tie their fortunes to a trend such as demographics and an aging population.
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