5 Habits of Savvy Investors-Part 2

Part 1 – Part 2 – Part 3 – Part 4 – Part 5 Complete Investment Strategy If you look at any successful investor, they have developed a complete investment strategy. They would never invest with a haphazard, one-off, ‘let’s see how this turns out’ approach. In fact the opposite is true. Savvy investors follow their comprehensive, detailed, soup to …

10 Items for Your Year-End To-Do List

Can you believe it? 2009 is almost over! The older I get, the faster they go! I thought I would put together a quick note to remind you of some helpful, year-end tasks you may want to consider: 1. Rebalance investment accounts – this is something few people do but I highly recommend. This involves bringing your investment accounts back …

Cutting through the confusion

There are a lot of financial talk shows on the radio every weekend. My show is one of nine on KRLD each Saturday and Sunday, and if you consider all the other stations in the area, you can get an idea of the variety of voices and opinions that confront the average investor each week. If I were someone who …

On Randomness

One of the most fundamental and most difficult concepts for investors to wrap their brain around is the randomness of markets. This is most likely because, as Terry Burnham ably shows us, in Mean Markets and Lizard Brains, humans are just not wired to deal with probability and randomness. In the investing classic, A Random Walk Down Wall Street, Princeton …

The mother of all reverse compounding problems

The only proven way to achieve a passive double-digit yield to replace your income is to own businesses – either directly or indirectly through common stock ownership. But this creates a challenge. The chart shows each of the bear market declines since the end of World War One. We are in the tenth decade and there have been twenty bear …