A Checklist Can Make You a Better Investor

In discussing how his company responded to last week’s engine failure on flight 1380, Southwest Airlines CEO Gary Kelly was quoted by The Wall Street Journal as saying, “Everybody has a checklist.” Checklists have been shown to work across a variety of fields, including aviation, health care, construction and, yes, investing. Value investors Guy Spier…

 

A Big Argument for Buying and Then Monitoring

A study showing that most stocks have failed to outperform one-month Treasury bills has been the topic of some discussion this year. The analysis, conducted by Arizona State University finance professor Hendrick Bessembinder, found that slightly more than four out of seven stocks have realized worse returns than one-month Treasuries. The finding drew attention, but…

 

9 Rules for Better Stock Investing

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Why Value Beats Growth: A Brief Explanation The various characteristics of stocks that generate higher returns than what the capital asset pricing model (CAPM) would predict are known as “stock market anomalies.” Two of the most famous anomalies are size and value. This article sets out…

 

Nine Rules to Better Stock Investing

This article originally appeared in the April 2015 issue of the AAII Journal. The Wall Street machine acts as a huge distraction that creates noise and confusion in the markets—and in our own brain chemistry—that makes long-term investing more difficult. Guy Spier, manager of the Aquamarine Fund, believes that the best way to overcome the shortcomings…