July - September 2010 articles archive home
Enough says John C Bogle
Our financial economy, by definition, subtracts from the value created by our productive businesses. Think about it: while the owners of business enjoy the dividend yields and earnings growth that our capitalistic system creates, those who play in the financial markets capture those investment gains only after the costs of financial intermediation are deducted. Thus, while investing in American business is a winner’s game, beating the stock market before those costs is a zero-sum game.
Thursday, September 30, 2010 ... more
Lessons from Ralph Wanger.
In 1970 Ralph Wanger set out to invest in small companies; he did so with remarkable success until he retired in 2003. The Acorn Fund, which he manageduring this time, racked up an annualized 16.3%, against the S&P’s 12.1%.Money Magazine’s Jason Zweig once asked him how he’d turned out to be a such good investor. “At Acorn we had a clear philosophy,” replied Wanger, “to be long-term holders of smaller companies with financial strength, entrepreneurial managers and understandable businesses - and we stuck to it.”
Wednesday, September 29, 2010 ... more
Assuming prices are unpredictable
Burton Malkiel, who wrote A Random Walk Down Wall Street and Charles Ellis, author of Winning the Loser’s Game, have co-written a new book titled The Elements of Investing, in which they claim to have boiled down everything they’ve learnt about investing. It can be summed up in four lines: save early and often; get your asset allocation right; diversify across and within asset classes; and keep your investing costs low.
Tuesday, September 28, 2010 ... more
Not as wise as it sounds
Mark Twain described the sound bite as "a minimum of sound to a maximum of sense.” But in his book, The Duck that Won the Lottery, in which he looks at a variety of bad arguments regularly used by politicians, the media, and in everyday situations, Julian Baggini warns of the vacuous pseudo-wisdom of some sound bites.
Thursday, September 23, 2010 ... more
Deloitte's CFO survey
According to the 2013 Deloitte CFO Survey, in an environment of uncertainty with confidence levels declining, Southern African CFOs are tapering off their growth plans and edging towards a more cautious stance.
Thursday, September 23, 2010 ... more
Your brain and money
Emotional circuits deep in our brains make us instinctively crave whatever feels likely to be rewarding – and shun whatever seems liable to be risky. To counteract these impulses … we haves only a thin veneer of relatively modern analytical circuits that are no match for the blunt emotional power of the most ancient part of our brain.
Wednesday, September 22, 2010 ... more
Klarman's advise
Seth Klarman is inaccessible even to the well-heeled: The hugely successful Baupost Group, which he founded in 1983, turns away new investors. When it was still accepting clients, you needed a referral from an existing client before it would take your money. But at MIT in 2007 he talked of his investment philosophy.
Tuesday, September 21, 2010 ... more
From Amazon’s CEO
What I want to talk to you about today is the difference between gifts and choices. Cleverness is a gift, kindness is a choice. Gifts are easy -- they're given after all. Choices can be hard. You can seduce yourself with your gifts if you're not careful, and if you do, it'll probably be to the detriment of your choices.
Friday, September 17, 2010 ... more
An appeal to build a profession.
Security analysis is a fledgling science. Many of us believe that there is not enough permanence in the behaviour of securities to justify the laborious accumulation of case histories. But how do we know whether, or to what extent it is so?
Thursday, September 16, 2010 ... more
Dream big.
For most of us our greatest richness always has been and still remains in dreams. It may be in dreams about our future accomplishments … it may be in dreams for our children, or dreams of the past recalled, or of revenge and future justice, or of religion and another world. We cannot hope for economic riches that are really greater than our dreams …
Wednesday, September 15, 2010 ... more
Advice from the Bombay market
Hope is an easy crutch to lean on. Pressure or no pressure, there's always a tendency to stay invested when the going is good in the hope of making a little more money. Similarly, if an investment is showing a loss, people refrain from selling thinking the stock is bound to rebound. The bottom line: base your investment decision solely on fundamentals.
Tuesday, September 14, 2010 ... more
Smart move or insincere decision?
What reason have they for saying that we cannot rise from the dead?” He asks in Pensées. “What is more difficult, to be born or to rise again; that what has never been should be, or that what has been should be again? Is it more difficult to come into existence than to return to it? Habit makes the one appear easy to us; want of habit makes the other impossible.
Friday, September 10, 2010 ... more
Wish there was something real Thursday, September 9, 2010
Beware bold assertions Wednesday, September 8, 2010
Why they do what they do so well Tuesday, September 7, 2010
Lords of our skull-sized kingdoms. Friday, September 3, 2010
A common investment error Thursday, September 2, 2010
Accept your mistakes Wednesday, September 1, 2010
European dividend swaps: an opportunity? Tuesday, August 31, 2010
Sparring with scarecrows Friday, August 27, 2010
Buying what most can’t understand. Thursday, August 26, 2010
Market delusions explained - pt2. Wednesday, August 25, 2010
All it takes is the willingness to measure yourself every day, for 30 years. Tuesday, August 24, 2010
Otherwise this thing is going to require endless repair. Friday, August 20, 2010
Market delusions explained for Dummies Thursday, August 19, 2010
Why the stupid are so loud Wednesday, August 18, 2010
All wisdom can be found on T-shirts Tuesday, August 17, 2010
Even people who want to go to Heaven don't want to die. Friday, August 13, 2010
Don't try to beat a good thing Thursday, August 12, 2010
Mr Brown’s rules for taking incalculable risks. Wednesday, August 11, 2010
Everything you need to know about global warming in 5 minutes. Friday, August 6, 2010
Who says you can’t beat the markets reading the news? Thursday, August 5, 2010
Attributes of a great trader that apply elsewhere. Wednesday, August 4, 2010
The difference between discipline and flexibility. Tuesday, August 3, 2010
You get to decide how you're going to see it. Friday, July 30, 2010
Could have been written yesterday Thursday, July 29, 2010
Jim Chanos on short-selling. Wednesday, July 28, 2010
Don't bank on making it in the market. Tuesday, July 27, 2010
Might spoil things, but would you want to be without it? Friday, July 23, 2010
Financial disaster or government disaster? Thursday, July 22, 2010
Why so few investors can think for themselves Wednesday, July 21, 2010
Not so much about, as how. Tuesday, July 20, 2010
Disputation, semantics and the adoption of alternate mindsets Friday, July 16, 2010
Legendary mathematician and hedge fund manager. Thursday, July 15, 2010
We are who we are and start from where we start. Wednesday, July 14, 2010
The problem with investing in more recent times Tuesday, July 13, 2010
Parables from Schopenhauer’s Studies in Pessimism. Friday, July 9, 2010
Not efficient — but hard to exploit Thursday, July 8, 2010
Emphasize discipline over daring. Wednesday, July 7, 2010
The importance of finding your own approach Tuesday, July 6, 2010
Wherever I go then, it will be well with me. Friday, July 2, 2010
What’s wrong with the desire to maximise shareholder value. Thursday, July 1, 2010
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