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
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.
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
Why would anybody pay someone to evaluate their financial situation and not be truthful with that person? It seems like a waste of time, money and effort. Yet, we’re all guilty of doing this exact thing! We all go to various professionals for help several times a year and don’t do what they tell us… [Read More] The Self-Fiduciary
Last week, I read about a Netflix algorithm update that’s changing the way they serve program images to customers. In addition to curating your Netflix feed based on what you’ve previously watched, Netflix will now be showing unique program images that are also based upon your past preferences. Consider the following example from Thrillist: “You… [Read More] How Perception Shapes Reality