Quote for the Week
One of the most remarkable things about the investing world is how (correctly) venerated Warren Buffett is and how completely people ignore his investing advice. Since Mr. Buffett has made more money than anyone in the history of the planet solely through investing, one would think that when he says quite clearly what to invest in, people would pay attention. I guess they do pay attention, they just do the opposite. In 1974, near the bottom of the market, he said stocks were so cheap he felt like an over-sexed guy in a harem. In 1999, near the top, he opined that stocks would see returns way below those experienced in the bull market up to that time. From the time of his comments in November 1999 to the end of October 2008, stocks fell over 2% per year. In October 2008, again near the bottom, Buffett published an op-ed in the New York Times entitled, “Buy American. I Am.” telling people to buy American stocks. They promptly accelerated their selling. On October 5th of this year, he said the following: “It is quite clear stocks are cheaper than bonds. I can’t imagine anybody having bonds in their portfolio when they can own equities.” The result: people pour their money into bond funds in record amounts, and sell their holdings in funds that invest in U.S. stocks. Why investors persist in doing the opposite of what the greatest investor of all time does, is a greater mystery than the problem of consciousness, or the origin of life, or free will and determinism. Those at least are hard problems. — Bill Miller (source)
From the Archives
Last Call
- 7 Life Lessons from Warren Buffett that have Nothing to Do with Picking Stocks – B. Arends
- Is Investing Really That Hard? – Spilled Coffee
- How to Prepare Your Portfolio for a Recession – C. Benz
- How Flows Change Factor Performance – Klement on Investing
- Why Do Beautiful People Also Seem Smart and Likeable? – Psyche
- WWEconomics: Kayfabe and the Trade War – Kyla’s Newsletter
- The Market for Eggs: How Prices Are Hatched – St. Louis Fed
- Ending the Anger Economy – More Than That
- How Ice Sculpted Canada – Uncharted Territories
- Old Art is Strangling New Art – Infinite Scroll