A billionaire many, many times over, Warren Buffett still lives in Omaha Nebraska, in a home he bought for $31,000 in 1958 and is now estimated to be worth $652,6191. Sam Walton, the Walmart founder, drove the same 1979 Ford F-150 pick-up until he died in the early 90s2.
I’m certainly not in their league, not even close, but I am successful — in both my business and as an investor. And I’m not ashamed to admit that I’m always looking for a deal, for ways to save Read More »
The phrase, which has been around in English since about 1545 is, “Rome wasn’t built in a day.” It’s important for investors to take it to heart because essentially it’s a warning against rashness and impatience — which can be, as behavioural economists — and history — keep reminding us, an investor’s worst enemy.
When we react — or over-react — to short-term performance and behave impetuously, we often do it at the expense of our long-term results. On the other hand, those investors who appreciate and capitalize on the Read More »
We’re turning our blog over to a guest blogger today. Vincent Linsley is a Canadian investment management sales and marketing professional. He also authors a blog, Investment Graffiti.
Warren Buffett’s 2019 Annual Letter to Shareholders was delivered on February 23 and eagerly-read by investors worldwide. The much-anticipated update provided an inside look at his company, currently the world’s highest-priced stock, trading at over US$300,000 per share.
The epitome of “basic” no frills writing style and structure, Buffett’s disciples read the letter religiously, Read More »
Don’t know about you, but I’ve never met or read about anyone who’s never been wrong about anything, even experts and the most savvy among us.
Yet we’re always hesitant to talk about those instances. We’re eager enough to discuss our successes but aren’t as willing to open up when things don’t go exactly as we’d hoped, planned or expected — regardless of what it is — a hiring choice, a business decision, a purchase, a relationship, an Read More »
I read a very interesting blog post the other day. In it, there is a Warren Buffett quote that makes so much sense: “The most important quality to do well is temperament which would permit the control of fear and greed which have ruined many. Anyone who has become rich twice is dumb. Why would you risk what you need and have for what you don’t need?”
Both the quote, and the blog post where I read it, made me think about the recent election in the U.S. and all the commotion it caused. The worrying, wondering and speculating over who would win and what the potential Read More »
In the investing world, the topic of diversification often arises. As money managers, we advise clients on their stocks, bonds, mutual funds, hedge funds and real estate funds, among others. The intellectual stimulation of this job is hard to beat. We do believe portfolios should be diversified across asset classes. But, when it comes to owning simple common stocks, concentration is the way to go.
My friend David Kaufman recently published an excellent article in the Financial Post on the merits of owning a concentrated portfolio of stocks. David writes for all readers, regardless of their familiarity with high-tone investment language, and his column is worth reading. You can find it here.
David makes a simple point. With the proliferation of exchange traded funds and, I will add, the number of smart people that have flooded into the investment business, it becomes difficult to outperform the stock market.
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As Clint Eastwood said in Magnum Force, “A man’s got to know his limitations”. Warren Buffett is perhaps the wealthiest and most famous investor of all time. Therefore many have tried to emulate him – including professional money managers – without much success. The fact is, very few could ever duplicate the process and the success he and his partner, Charlie Munger, have achieved at Berkshire Hathaway.
First, Buffett has over 75 years of investing experience, having bought his first stock at age 11. As well, except for a few hands of bridge with Bill Gates, he spends all of his time evaluating investments. His wealth and ownership of Read More »
Managing emotions is an important part of investing. An experienced Investment Advisor can help with that. We work with clients to prepare a financial plan and help them stick with it over the long term, regardless of market fluctuations.
In recent years, a whole new field of study has evolved called “Behavioural Investing”. It explains why people react the way they do and points out Read More »
For those readers who know me well, this is a familiar topic. I am a major advocate of encouraging young people to start investing early. The principal reason being that if you start early enough, the prospect of becoming rich is almost guaranteed.
A little known fact is that over the course of the 20th century, every $1,000 invested in the S&P 500 stock market index, with dividends reinvested, would have become about $19 million. What is even more impressive is that over most of that time, no real work was required by the investor. You could have beenRead More »
My mentor in this business often tells me that to be successful, knowing some financial history is essential. Many people would argue that it’s always good to know more about the world we live in but, in a more practical sense, being well informed on history is very helpful to the investment process.
Market Fluctuation — Not As Uncommon as You May Think …
We have all been reminded, recently, that the stock market is a volatile beast. This is a fact investors often forget, especially in the good times. Some of you may be surprised to learnRead More »