Quote for the Week

Investing is about making decisions with your money. All of those decisions are probabilistic. As former Treasury Secretary (and maybe future Chairman of the Fed) Robert Rubin emphasizes in his new book, nothing is certain – except uncertainty – and decision procedures need to reflect that. In a recent speech, Fed Chairman Greenspan makes much the same point, and elaborates on the difference between the most likely outcome and low probability but high impact outcomes.

Decision procedures and outcomes also need to be clearly distinguished. A decision is not bad or wrong because the outcome turns out badly. And a good decision is not the same as one that turns out well. A decision is bad if the process that engendered it was bad, regardless of the outcome. Bad outcomes — losing a lot of money in an investment — can happen even if the process is sound; and good outcomes can occur even if the process is lousy. A market that is mostly efficient can distribute outcomes all over the place. — Bill Miller (source)

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I’ve updated the asset class, sector, international, and emerging markets quilts through the first quarter of 2026. Find links to each version below:

• Asset Class Returns
• Sector Returns
• International Market Returns
• Emerging Market Returns

You can also download copies here or grab the images below. I’ll have a deeper dive into the numbers next week.

Every so often, something happens that nobody expected, including markets. It was not priced in. It wasn’t even considered. But it forces markets to reassess what the majority believed would happen over the next 12 months or so.

That’s 2026 in nutshell so far. The market impact of the war in Iran and $100 oil prices has been more volatile markets yet somewhat subdued returns so far.

Broadly, the range in asset class returns on the year is small. REITs with a 4% total return at the high end. Large caps (S&P 500) at -4% at the low end.

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Quote for the Week

A lot of people think long-term investing is three weeks from next Wednesday, but when I talk about long-term investing I mean 5, 10, 20 years. During that length of time the market can experience ups and downs due to what I call “background noise.” Events occur – hurricanes, wars, political instability, currency and bank crises – that make investors nervous and cause market volatility. It does get nasty at times, but it shouldn’t cloud investors’ judgments about thinking long-term. The key organ here is your stomach. Everyone has the brainpower, but not everyone has the stomach for it…

If you’re going to need money within 12 months to pay for a wedding or put a down payment on a house, the stock market is not the place to be. You can flip a coin over where the market is headed over the next year. I have no idea whether the next 1,000 points for the Dow or Nasdaq will be in positive or negative territory. But if you’re in the market for the long haul – 5, 10, or 20 years – then time is on your side and you should stick to your long-term investment plan. I would argue that the next 10,000 and 20,000 points for the market will be up. That’s been the long-term trend. The bottom line is to have a responsible plan for your investments and know what you own and why you own it. There’s too much at stake not to. — Peter Lynch (source)

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Quote for the Week

I regard my property largely as a trust. It is not mine absolutely. I take care of it on much the same principle as you would foster a valuable animal left in your charge. Of course my attitude in the premises was inherited. My father believed that the money left to one should be given over undiminished to the next generation. That also is my idea.

He believed that one who inherited property had the right to spend the income it yielded, but not to waste the principal.

About all that can be said is that my investments have been carefully chosen and have turned out well as a rule. A fortune cannot be built up around any fixed idea or, in other words, without the exercise of plain common sense. I buy when things are low and no one wants them. I keep them, just as I keep a considerable number of diamonds on hand, until they go up and people are anxious to buy. That is the general secret of business success. One thing, however, has been wrongly attributed to me, and that is speculating. I never speculate. Such stocks as belong to me were purchased simply as an investment, never on a margin. — Hetty Green, 1905 (source)

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B.H. Lidell Hart spent a lifetime writing about the history of military strategy and war. He summarized the many lessons in his writings in a little book called Why Don’t We Learn from History?.

The book is meant as a summary of the history of warfare, but it’s much more than that. It’s easily translatable to lessons on life, business, and investing.

Only Hart presents it with an inverted view of the repeated mistakes throughout history deeply rooted in human nature.

The book is filled with a lot of lessons and great quotes. So, I pulled a few favorites out and added my two cents below each, as it relates to investing.

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