Become An Educated Investor “When it comes to investing, the key is not to try to outsmart the market, but to understand how it works and use that knowledge to your advantage.” –David Booth, Chairman and Founder of Dimensional Fund Advisors 01-23-2023 This quote pretty much sums up how I invest and why I write …
The Markets Are Beating Them “Contrary to their oft-articulated goal of outperforming the market averages, investment managers are not beating the markets: The markets are beating them.” –Charles Ellis, author of Winning the Loser’s Game 01-16-2023 Truer words were never spoken, Mr. Ellis. Just check the chart below for confirmation of this fact. This chart …
We Have a Plan “It’s unrealistic to think you can outguess the markets” –David Booth, founder of Dimensional Fund Advisors 01-09-2023 What better way to start the New Year than with some wise investing advice from David Booth: This Has Been a Test: Developing a Financial Plan You Can Stick With Luckily, we have a …
Trust The Markets “My fear is that faster and easier ways of investing will allow people to lose more money faster and easier.” –David Booth, Founder of Dimensional Fund Advisors 12-12-2022 Booth is a wise and learned man. He founded one of the most successful mutual fund companies in the world, Dimensional Fund Advisors. He’s …
Market Still Beating Them “Contrary to their oft articulated goal of outperforming the market averages, investment managers are not beating the market – the market is beating them.” –Charles Ellis, author of The Loser’s Game 12-05-2022 This observation by Ellis was made in the 1970’s. In fact, Alfred Cowles studied and wrote about active management …
Fifty Years and Going Strong “It is not often in life that the easy thing to do is the smart thing to do.” –Burton Malkiel 11-28-2022 Burton Malkiel has been one of the most influential people in helping me develop my investment philosophy. When I read his classic book, A Random Walk Down Wall Street, …
Rolling Averages Formula to calculate rolling averages: Rolling Average = sum of data over time/ time period or the actual formula: Simple Moving Average = (A1 + A2 + …… + An) / n 11-14-2022 Sorry to go all math on you but I want you to understand this concept so you can get the …
The Boring Truth “But the truth is, each day’s news offers little value to long-term investors.” –Jonathan Clements 11-07-2022 Jonathan Clements is one of my favorite financial journalists. He had a very successful column in the WSJ for over 13 years. He always told it as it was and he was a tremendous resource for …
Let Compounding Do The Heavy Lifting “A picture is worth a thousand words.” –Frederick R. Barnard, Printer’s Inc (December 1921) 10-24-2022 I don’t know about you, but for me seeing something is better than having it described. Check out this graph below to see what I mean. This depicts perfectly how you make money over …
Human Ingenuity vs Random Luck “I figure you have the same chance of winning the lottery whether you play or not.” –Fran Lebowitz 10-17-2022 With a 1 in 292 million chance of winning at Powerball, I agree with you Fran. I came across an interesting article over the weekend, How The Lottery Works and Is …