A World of Difference

A World of Difference “Diversification is your buddy.” –Merton Miller, Nobel Laureate in Economics 1990 04-26-2021 The above quote was Miller’s answer when asked to sum up the most important investment concept that investors should know. I couldn’t agree more. Building portfolios that are globally diversified is one of the primary keys to long-term investment …

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Lessons From Booth

Lessons From Booth ” I’ve reflected on what I’ve learned over the years that I wish every investor could know.” –Lessons From Booth 04-19-2021 Forty years ago, David Booth started DFA because he believed there was a better way of investing than stock picking. To say the rest is history, doesn’t really do justice to …

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This May Surprise You

This May Surprise You “How did one of the poorest countries, China, become, in thirty years, one of the richest?” –Helen Raleigh, journalist, author & China scholar 04-12-2021 The answer may surprise you. It’s that nasty C word again. Yes, it was capitalism. Check out this short 5 minute video that shows how capitalism and …

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So Much For Conventional Wisdom

So Much For Conventional Wisdom “Stocks don’t ignore anything.” –Ken Fisher 04-05-2021 Should we be surprised that tax hikes are coming? Biden campaigned on bumping up the top personal and corporate tax rates. If the market taught us anything in 2020, it’s that it is a very efficient forward looking information processing system. In other …

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Time In, Not Timing

Time In, Not Timing “The reality is, it’s time in the market, not timing the market.” –Keith Banks, Bank of America, Vice Chairman on CNBC 03-22-2021 This quote should be the mantra for all investors. Going back to 1926, the average return on stocks is about 10% per year. The only way investors can get …

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Call Me Old Fashioned

Call Me Old Fashioned “I can say almost with certainty that they will come to a bad ending.” –Warren Buffett 03-15-2021 The above quote came from a CNBC interview with Buffett regarding his views on bitcoin and cryptocurrencies in general. I must admit I’m no expert in this area but I do know that betting …

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It’s Already Baked In

It’s Already Baked In “I take the market-efficiency hypothesis to be the simple statement that security prices fully reflect all available information.” –Eugene Fama 03-08-2021 Fama won a Nobel Prize in Economics for his work regarding the efficiency of the markets. What this means is that the global stock markets have priced in all available …

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Capital to Income Ratio

Capital to Income Ratio “Half our life is spent trying to find something to do with the time we have rushed through life trying to save.” –Will Rogers 02-22-2021 Do I have enough to retire?….Am I saving enough for retirement? Without a doubt, these are the type of questions I get asked most frequently. Certainty, …

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