Insights From Conversations With Great Investors

Warren Buffett said that among the lessons he learned from Benjamin Graham was that “price is what you pay, value is what you get.” Though Buffett used the phrase in a discussion about bonds and stocks in his 2008 letter to Berkshire-Hathaway shareholders, the adage applies to many other objects. One such object is the…

 

Taking on Risk and Hoping the Strategy Doesn’t Backfire

Oh boy. There’s something new to be filed under the category of, “Well, it seemed like a good idea at the time.” It is cash secured puts on the S&P 500. According to The Wall Street Journal, pension funds in Hawaii and South Carolina are using the strategy to generate income. It is a strategy…

 

Retirement Can Be Long Enough for Something to Go Haywire

An interesting point was brought up at this week’s CFA Institute’s Financial Analysts Seminar: retirement is a long enough period of time for something to go haywire. The point was brought up by Barton Waring, a retired chief investor officer for Barclays (which is now BlackRock). He raised the topic during a discussion about retirement…

 

The Debate Over Retirement Income Strategies

As millions of baby boomers are either retiring or nearing retirement, there is an ongoing debate on how to manage one’s portfolio heading into and once in retirement. Here’s a glimpse into it: While at last week’s Morningstar Investment Conference, I tweeted a comment made by Morningstar’s David Blanchett about the likelihood of success for…

 

Where the NASDAQ Is Less Likely to Close At

Call up a one-year chart of the NASDAQ Composite index and you’ll notice a line of support and resistance around 4,900. Extend the chart to cover three years, and a second support/resistance line appears at approximately 4,600. Those support/resistance areas may not be not completely attributable to randomness. The authors of a manuscript accepted by…

 

Members Weigh In on State of the Consumer

This week’s Sentiment Survey special question asked AAII members how they thought the average consumer was faring relative to a year ago. Nearly 39% said the average consumer is faring better, though many clarified their responses by describing the average consumer as doing somewhat or a little bit better. Lower energy prices and, to a…