Not exact matches
So if you have a 70 - year investment horizon until you need the money, and you have no opinion
about future
market direction,
go ahead and get fully
invested in stocks.
Here's a letter to the board of Biglari Holdings re: executive compensation [Noise Free
Investing] & then more thoughts on Biglari's compensation agreement [My
Investing Notebook] Where things stand
in the
market [Bespoke Investment Group] A list of
stocks Nasdaq is canceling trades
in from yesterday's madness [Business Insider] The best interest rate chart
in the world [Trader's Narrative] A great macro overview from Barry Ritholtz [The Big Picture] A look at John Paulson's possible ownership of Bear Stearns CDOs [Zero Hedge] John Mauldin on the future of public debt [Advisor Perspectives] Top buys & sells from Morningstar's ultimate
stock pickers [Morningstar] The truth
about «Sell
in May &
Go Away» [WSJ] An interview with hedge fund manager Hugh Hendry [Investment Week] Bill Ackman: Let's have a public registry for
stock opinion [Barron's] Hedge fund Harbinger hires ex-Orange chief for wireless plan [Dealbook] & Deutsche Telekom has been
in talks with Harbinger [FT] Hedge funds begin to restructure fee system [FT]
Additionally,
investing legend Howard Marks published a widely - read memo on Wednesday that warned on a variety of
market conditions right now, including positioning around the FAANG
stocks and a lack of ideas
about what could
go wrong
in markets.
And what I'm talking
about is taking huge risks like putting all of your money into a couple of
stocks and one of them winds up
going into bankruptcy, or we have a big
market decline, You are over
invested in stocks, you panic when the
market goes down, you lock
in your losses and you've given up money that you will never get back.
As
stock investing generally requires a very detailed
market study and is a very volatile investment
in terms of return of investment, investors, especially the new investors out there are now turning to
investing in bonds, as bond investments are safer than most of the other forms of investments and you need not constantly worry
about prices
going high or low.
If you want to beat the crowds / indices, I think there's two ways to
go about it — i) take a relatively passive approach, but become knowledgeable & experienced enough to exit over-valued
markets & to over-commit (or avoid selling)
in distressed
markets, ii) as I've said,
invest the time / effort & tackle / climb that learning curve so you learn how to consistently assemble & manage a well diversified portfolio of mispriced
stocks.
OK, so if
investing in companies whose
stock trades cheaply relative to its earnings or companies whose
stock trades at or below book value has historically provided a return greater than that of the
stock market as a whole, which of these two strategies should I choose and how should I
go about actually implementing it?