Compounding investing wisdom...
by Jon
My first quarter reading began with my head in a textbook until a vacation and this lockdown freed up time for more interesting books. Thankfully, I finished the textbook, along with the course, before the lockdown kicked in.
Here’s what I’ve been reading the past three months: Continue Reading…
by Jon
2019 has been a busy year. (This post is meant as a review on the year and what’s planned for 2020. Feel free to skip it, if that’s not your thing.)
Every year I challenge myself with a new project. Some are one and done. Others are ongoing, mostly to help reinforce habits.
This year was no exception. I went overboard on four new projects. Only one was planned — book notes — at the start of the year. And the rest?
One was unexpected. Finding a hosting company for the site became a necessity back in May. I won’t waste time on the details. The new host was proactive, helpful, and still are. Thankfully, the migration process went smoother than expected.
The other two projects were somewhat intertwined. A decision to start the CFP coursework meant less time to work on another project I’ve mulled over for a while. So I started another project early in the year while I had the time.
Now about those planned projects. Continue Reading…
by Jon
I’m out of town for the week visiting family and playing some golf, so just the links today.
Also, no posts next week because of the Thanksgiving holiday. I’ll be back to the regular grind after that. Have a great Thanksgiving!
Here’s what I’ve been reading this week. Continue Reading…
by Jon
Probably the largest aggregate losses are suffered by people who invest overenthusiastically in a basically sound company. — Ben Graham
I was reminded of Graham’s quote after hearing something Joel Greenblatt said at a recent conference:
I’d like to own a great growth company that’s gonna continue to grow forever and there are some extraordinary companies out there that will continue to do well. I would say…people think there are a lot more companies that rhyme with those few companies that can do that, then there are, in reality. There probably are a few great businesses like that, and I’m not gonna argue that they’re great — I have to figure out which one’s they are first — but there will be some winners. And you’ll know their names because they won.
Sometimes the market views stocks through rose-colored glasses. It prices companies as if they’ve built an impregnable moat around them and they already won. Really, it’s an illusion. Continue Reading…
by Jon
It’s never been easier for the average investor to find long term return data. The asset class tables I started several years ago, never would have been possible without it.
The benefit is the ability to turn a pile of numbers into a visually appealing tool — something people can learn from and, hopefully, make more informed investment decisions.
All the index data I use in the tables can be found online in some form. To get the returns still requires a little math. Since I’m doing the work for the tables anyways, I thought I’d publish it in case others might it useful.
Anyone who’s interested can find it on the new Historical Returns page. You can click the download buttons to grab a copy in CSV or Excel formats. Continue Reading…
by Jon
Edwin Lefevre tells an entertaining story of a fictionalized account of Jesse Livermore in Reminiscences of a Stock Operator. The draw of Livermore is an interesting one because he failed to learn the biggest lesson, summed up by Levefre:
In addition to trying to determine how to make money one must also try to keep from losing. It is almost as important to know what not to do as to know what should be done.
Even after he made and lost multiple fortunes in his life, Livermore never figured it out. In the end, he died broke. But this is less about Livermore and more about highlights from the book.
Despite the book being fiction, it offers some great lessons on history, human nature, and what not to do: Continue Reading…