Edgar Lawrence Smith concludes his classic book with the importance of “Investment Management.” I don’t know how original this concept was in 1924, but investment management is exactly like it sounds. Anyone who’s read a few investing books should recognize the principles Smith lays out since it fits the basic concepts of investment planning today.

Obviously, the big difference between then and now is that most investors are analyzing funds or strategies instead of individual stocks and bonds. And analyzing might be an exaggeration.

Smith’s point falls under the Peter Lynch maxim of “Know what you own” and keep a watchful eye over it.

But first you need a sound plan. He lays out the case for management as an ongoing effort to balance a portfolio between stocks and bonds based on whatever the current environment warrants.

Then he expands into having a plan for the long term (including the next generation), the importance of diversification, and understanding the limits of what’s possible.

Here’s how Smith broke it down: Continue Reading…

It’s time for another reading update. Last quarter’s slump got fixed…I think, mostly diving into a couple of old books and digging up dirt on Henry Singleton.

Here’s what I’ve been reading the past three months: Continue Reading…