Happy Hour: Early Holiday Edition

I’m keeping things short this week to get an early start to the upcoming holiday. No, that’s not code for camping out for Black Friday deals. It does mean no posts next week too. Things will get back to a regular schedule in December.

Have a great Thanksgiving everyone! Continue Reading…

Happy Hour: Ex-Energy

Slicing and dicing up indexes are what fund companies do best these days because most can’t compete with the low-cost leader in the industry. A new story is told, almost daily, about how you might make money or avoid losing money with some new fund – then you get charged an arm and leg for that narrative. And that is how fund companies try to create demand out of thin air.

The new yarn being spun is the need to avoid one specific sector in the market. To tell the tale, the fund company uses hindsight to weave its story. Continue Reading…

Happy Hour: Tide Markets

Business Insider has a write-up on the latest Baupost quarterly letter. There are several great quotes in the article on the Dotcom bubble, doing nothing, the importance of cash, and a little bit about their process.

I pulled a couple quotes below that describe what it was like being a value investor during the Dotcom crash. Continue Reading…

Happy Hour: Sports Lessons

In case you missed it, the latest Marks Memo (pdf) was released last Friday. It’s an homage to Yogi Berra specifically and sports generally. The comparison between sports and investing are used widely because it’s an analogy most of us can relate to on some level and the lessons learned tend to overlap.

Much like Buffett uses Ted Williams to explain his investment philosophy, Marks uses bits of Yogi, baseball, football, fantasy sports, and tennis to explain his. Continue Reading…

Happy Hour: 20 Punches

Every decision you make comes with the chance of being wrong. Being wrong isn’t something we like to think about, but it matters.

Limiting your decisions, those potential points of failure, can improve your portfolio returns. It definitely impacts your costs, your free time, and your sanity.

So a good goal would be to streamline your investment process to the fewest possible (bad) decisions. Continue Reading…

Happy Hour: Government’s Gift

Three choices exist for every investment decision – buy, sell, and do nothing. Probably the most overlooked part of each choice is taxes.

Taxes are decided by what you buy, what you paid for it, what you’re paid while you own it, when you sell it, and what you sell it for. Simply, income and realized gains get taxed. Gains are a direct result of buying and selling. Notice, there is no capital gains tax for doing nothing. Continue Reading…