I recently wrote an article for Gurufocus.com on an asset allocation strategy called the ‘Permanent Portfolio’ (PP). For readers who don’t know, or who haven’t heard about this portfolio approach before, it was first published
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Negative Shareholder Equity Isn’t All That Bad After All
In many respects, the style of value investing is built around shareholder equity and book value. Benjamin Graham and David Dodd built their net-nets investment strategy on book value, with the logic that if you
Continue ReadingLosing It All Pt.4: Benjamin Graham
No series on the mistakes of the world’s greatest investors would be complete without looking at the mistakes made by the Godfather of value investing Benjamin Graham, in the early part of his career. Losing It
Continue ReadingWarren Buffett’s 5 Most Valuable Investment Quotes
Five of the most valuable pieces of investment advice Warren Buffett has given over the years. These quotes don’t really need much of an explanation, they speak for themselves. They almost entirely sum up Buffett’s
Continue ReadingInvestment Analysis And Psychological Barriers Investors Face
Michael J. Mauboussin’s latest research report focuses on the topic of comparison. Specifically, how investors can improve their comparison process as part of investment analysis. The paper, which you can find here, presents an interesting framework
Continue ReadingThe Long-Term Perspective
From the Motley Fool. Presented without comment: The long game … pic.twitter.com/5mQQukVmpK — The Motley Fool (@themotleyfool) January 4, 2018
Continue ReadingThe Best Investment Ideas Should Be Easy
Following on from my last post (Second-Level Thinking: What Is It And Why You Need It) I wanted to take another look at investing psychology, specifically, the emotional bias associated with investment research. Investment ideas
Continue ReadingSecond-Level Thinking: What Is It And Why You Need It
Understanding the numbers is just one part of investing. To be a successful long-term investor, you need not only understand the numbers but also the psychological traits required to be able to capitalise on your
Continue ReadingDon’t mistake a lack of volatility for low risk
“Beta is a more or less useful measure of past price fluctuations of common stocks. What bothers me is that authorities now equate the beta idea with the concept of risk. Price variability yes; risk
Continue ReadingHow to Invest the Lazy Way and Beat the Average Investor
As I covered in my post on diversification last week, data shows that the chance of finding a long-term winning stock is only around 7%. With this being the case, it makes sense for most
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