Blog Archives

Man Up Revisited – Winners Like Apple and Amazon

Apple Amazon.com

Last week I discussed a fascinating study that asked whether stocks outperformed T-Bills. Surprisingly, the answer was that most stocks do not and the bulk of stock market returns have come from an incredibly small number of companies that have produced the estimated $32 trillion in wealth (returns in excess of T-Bills) between 1926 and 2015.

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Posted in Economy, Interest Rates, Investing, News, Stock History, Trends, Uncategorized, Wealth


Bessembinder: A Fascinating But Skewed Study

Bessembinder

In reading @jesse_livermore’s latest and always brilliant missive/analysis, he referenced and linked to a study by Arizona State University professor Hendrik Bessembinder entitled “Do Stocks Outperform Treasury Bills?” It seems like a pretty ludicrous question since our capitalist system is supposed to reward risk takers.

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Posted in Economy, Investing, News, Wealth


It’s Got to Get Better in a Little While…Or Does it?

better

Jamie Dimon and Ray Dalio have both come out and said that despite America being such a strong country and performing well economically, not all is right when looking under the hood.

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Posted in Apartments, Economy, Interest Rates, Investing, News, Wealth


The Manipulative Function: George Soros Theory of Reflexivity

I recently re-read George Soros’ lectures at Central European University from October 2009. He gave five of them and they will be something I return to over time. Soros’ most formative experience was as a 14-year-old in 1944 and having escaped the Nazis out of Hungary.

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Posted in Advice, Economy, News, People, Wealth


I Don’t Buy It So I’m Selling It

Selling

I probably should have written this two weeks ago but I wanted to finish my Munger trilogy. I dislike when hindsight bias is used and prefer when people tell me when they are going to do something or just did and the reasons for it so that the decision can be evaluated objectively.

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Posted in Economy, Interest Rates, Investing, News, Uncategorized, Wealth


Man Up! Munger On The Benefits Of Diversifying Investments

Diversifying

This is the last in my three-part series excerpting what were the highlights for me from Charlie Munger’s extemporaneous comments and responses to questions at the Daily Journal shareholders’ meeting. Most financial professionals recommend diversifying your investments to avoid being wiped out financially and/or emotionally.

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Posted in Economy, Investing, News, Stock History, Uncategorized, Wealth


Marshmallows, Munger, and the Benefits of Delayed Gratification

marshmallows munger

Warren Buffett and Bill Gates were interviewed recently to discuss why they are both so optimistic about the future of America as well as other issues. Naturally, one of the topics covered was philanthropy as Gates and Buffett are leading the charge with regard to the Giving Pledge and the two have given more money away than other people in the world.

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Posted in Economy, Interest Rates, Investing, News, Trends, Uncategorized, Wealth


From Obama to Trump: 180 Degrees or More of the Same?

President Obama to Trump
From Obama

This post is a blatant application of hindsight bias. We all now know that when Barack Obama won the election and subsequently took office, the economy was melting down and the financial markets were in a free fall around the globe. To refresh your memory, there was the bailout of AIG by the Fed,

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Posted in Advice, Economy, Interest Rates, Investing, News, Stock History, Trends


Inflexibility When you Need it Least

Inflexibility

I have often made the case that apartments and home rentals are highly valuable because of the flexibility they provide people to move for whatever reason. Housing became way over-owned in the 2000s and this did great damage to our economy and society. I finally came across some interesting research that explored how damaging it was for underwater homeowners in terms of limiting their geographic flexibility to seek out employment and how this impacted their long-term earning power.

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Posted in Apartments, Economy, Investing, News, Wealth


Winner Take Most – Can Firms Gain a Large Share of the Market?

Google Firms

Income inequality has many economic and societal impacts. When more wealth is concentrated in fewer hands, this can negatively impact aggregate demand as a large percentage of marginal dollars earned are saved versus spent. And since one person’s spending is another person’s income, a growing pool of savings will lower aggregate demand unless one or more sectors of the economy spend more than it earns as output will go unsold and have to be marked down for it to clear.

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Posted in Advice, Apartments, Economy, Manufacturing, News, Trends, Uncategorized, Wealth


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