Disagreeing with Jeremy Grantham’s bubble call
Among other factors, indicators of extremes of euphoria seem much more important than price
volatility
The inherently short-term nature of the investment management industry
Market conditions are fixed only in part by balance sheets and income statements; much more by the hopes and fears of humanity; by greed, ambition, acts of God, invention, financial stress and strain, weather, discovery, fashion, and numberless other causes impossible to be listed without omission
Decisions, decisions and the current down market
The intelligent investor should be interested in the possibilities of profiting from these pendulum swings. There are two possible ways by which he may try to do this: the way of timing and the way of pricing.
How to cope with volatility
A high volatility 5-to-10-year return stream that might see several 30% drawdowns on the way to a superb 10 year record
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.
Let’s clear up misunderstandings about risk and volatility
A risky investment may be volatile, but not every volatile investment is risky.
How much riskier are stocks than bonds?
In such an environment, many investors actually consider investments they are making are low risk when, in fact, they are higher risk.
Keeping your head in times of turmoil
Doing what everybody else is doing at the moment, and therefore what you have an almost irresistible urge to do, is often the wrong thing to do at all
The great investors and extreme volatility
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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