Discolored surf, choppy water, a break in the wave pattern – these attributes signal one of the most dangerous aspects of visiting the beach: rip currents. The United States Lifesaving Association estimates roughly 100 drownings and over 80% of rescues performed by guards each year are the result of rip currents. Rip currents can form… [Read More] When Doing Nothing Means Everything
We believe that an investor's behavior can seriously impact their market returns. This category page is dedicated to informing our readers of certain behaviors that are known to damage investor's returns over time. We also discuss strategies to avoiding these damaging behaviors.
News (or noise) can be difficult to separate from facts (or signals). As an industry, Wall Street is LOUSY at communicating. Look at this headline from Marketwatch last evening: ? Why investors should dread the month of May—especially this year Published: Apr 30, 2018 4:46 p.m. ET Question: if you are an INVESTOR, why in… [Read More] Signal versus Noise
Yesterday, Jeff Bezos put out his annual letter to shareholders, which you can read here. Jeff shared his thoughts on what makes Amazon so successful: high standards. He acknowledges that a combination of many things makes Amazon what it is, but strongly believes their standards to be a driving force. Bezos outlines the four elements… [Read More] The Four Elements of Patient Investing
What are the odds that you’ll win the lottery, be in an automobile accident, make market beating investments, or get a divorce? We’re all capable of making educated guesses regarding the probability of these events, but how likely would we be to update our predictions if presented with the actual base rate odds? According to… [Read More] Fooled by Optimism
Is “settlement date” the right time to determine whether you’ve made the right move in your portfolio? After all, one of Wall Street’s oldest sayings is the “best trades are profitable right from the start.” But is two days after the trade (settlement date) the right time to determine that? Maybe we should wait a… [Read More] Is Settlement Date the time to Judge Trades?
(Initially) I began writing this post when the Dow Jones was down 300 points on January 30, 2018. The previous day (January 29th), the Dow was down 177 points. Through January 30, 2018, the Dow Jones had not seen a 1% drop in 111 days, one of the longest runs in history. I remarked “as… [Read More] Over-Bought and Over-Sold Conditions