Tax Credit Archives • Novel Investor

100 Year Old Investment Advice

March 30, 2016

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Jon

Sound investment advice doesn’t change. Neither does investor worries or behavior. It may seem like it’s all new but it’s just being rewritten – slightly differently – over and over again. The books, articles, and stories just cycle along with the markets, where each new environment is an opportunity to update what was said in the past.

Case in point is a 100-year-old book (the link is below) I came across while digging for something else. Curiosity got the best of me – really it was an excuse to avoid work – so I browsed a few pages on investing circa 1917.

It’s always interesting to see how things were explained in the past. I thought I’d share a few century old ideas below: Continue Reading…
Happy Hour: The Library

March 25, 2016

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Jon

I want to give a quick update on the site. For the past few months, I’ve been building out the backend for a new Library section on the site.

If you read the post from a week ago – Buffett Explains Bubbles – and clicked on the source link you got a peek at the new section. If you haven’t seen it yet, you can check it out here (I’ve since added some highlights from the transcript). Continue Reading…
Ben Graham’s Four Principles

March 23, 2016

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Jon

There’s a business behind most investments. Graham’s last bit of wisdom in The Intelligent Investor points to this – investing makes you an owner (stocks) or a claimant (bonds) of a business. Your success is a product of the businesses ability to earn money and pay its debts.

In the age of index funds, I think it’s easy for investors to overlook this fact. They’re one step removed. They own shares of a fund. And because they own shares of a fund, the returns of said fund become more important than the performance of the businesses held by the fund. Continue Reading…
Happy Hour: Models

March 18, 2016

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Jon

The last post covered a few things in the FCIC interview with Warren Buffett. One thing I want to touch on briefly is something Buffett kept mentioning – models.

I wish the interviewers would have asked a few follow-up questions because he kept referencing it. Here’s Buffett: Continue Reading…
Buffett Explains Bubbles

March 17, 2016

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Jon

Back when the financial crisis was in full blown collapse mode the government stepped in to shore up the problem areas and infused a huge amount of reassurance in the financial system. It was like a giant hug for the markets, for the people, and anyone else that needed one, that said, “things will be okay”.

Then the government did what all governments do best. Congress formed a committee to investigate why it happened. They needed a villain. So the FCIC, Financial Crisis Inquiry Committee, was created to find who or what was to blame. Continue Reading…
Happy Hour: Seven Long Years

March 11, 2016

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Jon

The bull market in stocks turned seven years old this week and nobody noticed. The Wall Street Journal pointed out the anniversary, then proceeded to ask why aren’t people more excited? Of course, the article cites a long list of things to worry about as the reason. It’s not necessarily wrong, but it’s not right either. There’s always something to worry about.

The real reason is much simpler. It’s hard to get excited about something you missed. Continue Reading…

100 Year Old Investment Advice

Happy Hour: The Library

Ben Graham’s Four Principles

Happy Hour: Models

Buffett Explains Bubbles

Happy Hour: Seven Long Years