Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast of the Semantics, a large language ocean. A small river named Duden flows by their place and supplies it with the necessary regelialia. It is a paradisematic...Read More

Far far away, behind the word mountains, far from the countries Vokalia and Consonantia, there live the blind texts. Separated they live in Bookmarksgrove right at the coast of the Semantics, a large language ocean. A small river named Duden flows by their place and supplies it with the necessary regelialia. It is a paradisematic...Read More

My financial practice is an interesting creation of the internet era. I don’t do a lot of face-to-face networking, and I very rarely host dinners or live events. It’s not that I’m against doing these things but rather than they are expensive and time consuming, and I’m not very good at them. If these things...Read More

I was digging through an old file cabinet that had belonged to my grandfather, and I found this little blast from the past: a Walmart (WMT) letter to shareholders from 1985, signed by Chairman and company founder Sam Walton. As a child in the 1980s, I actually remember my grandfather proudly showing me a paper...Read More

My favorite historical anecdote—and one that every investor should be forced to acknowledge reading before opening a brokerage account—dates to the era of the South Sea Bubble. A charlatan whose name is lost to history, published a prospectus for “A company for carrying on an undertaking of great advantage, but nobody to know what it...Read More

Warren Buffett is a hero to many investors, myself included.  His record speaks for itself: 18.3% annualized returns in Berkshire Hathaway’s ($BRK-A) book value over the past 30 years compared to just 10.8% for the S&P 500.  And his returns in the 1950s and 1960s, when he was running a much smaller hedge fund, were...Read More

I originally penned this articled in December 2011.  Given Sears’ stock action in the year that has passed, it’s worth another read. A well-respected value investor buys an old American company in decline, promising to restore its fortunes.  Alas, the recovery never comes.  The economics of the industry have changed, and the company cannot compete...Read More

We all know what “fragile” means.  But what is the opposite of fragile? If you are like me, your instinctive response would be “robust” or perhaps “durable.”  But you would be wrong. Something that is fragile is damaged by an unexpected shock, whereas something that is robust or durable is able to withstand it.  To...Read More

The single most important lesson I’ve learned about being a successful investor is the need to maintain emotional detachment.  Any feelings you may have towards a stock are unrequited.  If you love a stock, it will not love you back.  And if you hate a stock, it will not give you the satisfaction of responding...Read More