Mistakes Must Serve a Purpose: Some Early Lessons

Experience is that marvelous thing that enables you to recognize a mistake … when you make it again. —Franklin P. Jones It is not that easy to talk about one’s mistakes. In the early days of Tocqueville Asset Management, I suggested that the senior partners jointly write a report about their most memorable investment mistakes…

 

When to Sell and Nail Down Your Profits—While You Still Have Them

When you go through a complete market cycle—from the start of a new bull to the bottom of the next bear—your real objective is to nail down as much of the profits you’ve built as possible. But most investors give back more of their profits than they should, and too many give back the whole…

 

Market Shrugs Off “New Normal” of Rising Interest Rates

To the surprise of almost no one, the Federal Reserve announced this week that it would raise short-term interest rates and offered greater details of its plans to shrink its $4.5 trillion portfolio of bonds and other assets, which it expects to start later this year. The Fed said it would increase its benchmark federal…

 

Tweedy, Browne: “What Has Worked in Investing”

Many individual investors embody value investing—Benjamin Graham and Warren Buffett immediately come to mind. Among investment management firms, perhaps none is as devoted a follower of the principles of value investing as Tweedy, Browne Company. In his book “Smarter Stock Picking” (FT Press, 2010), David Stevenson wrote: “Graham may be the patron saint of most…

 

Stock Market’s “Fear Gauge” Hits 23-Year Low

A lot was written and talked about the CBOE Volatility Index, or VIX, this week. On Monday, it closed at 9.77, its lowest level since December 1993. This followed Friday’s close by both the S&P 500 and NASDAQ Composite indexes at new all-time highs. In addition, this was the first time in over 10 years…

 

May SSR Portfolio Update

There is one portfolio deletion and one portfolio addition for the SSR tracking portfolio in May. For more information on this month’s portfolio changes, read the May SSR Monthly Report. April Market Recap Geopolitics dominated the financial headlines in April. Rising tensions between the U.S and North Korea have had world markets on edge in…

 

Weaker-Than-Expected Car Sales Have Ripple Effect for SSR Portfolio

Car sales fell unexpectedly in March, boosting fears about bloated inventories and pricing pressure in an industry that many see as a key driver of the U.S. economy. This also reignited concerns about a subprime auto-loan bubble. Automotive industry analysts were expecting automakers to report increased sales in March compared to a year ago, which…

 

How to Take Your Emotions Out of the Sell Decision

Facing criticism from a colleague over modifications he made in his economic analysis, the famous British economist John Maynard Keynes once said: “When the facts change, I change my mind. What do you do, sir?” Keynes’ question is a relevant one for investors. Unless you are a buy-and-hold-forever investor, you will frequently be faced with…

 

April Changes to SSR Portfolio

We have posted our monthly changes to the SSR tracking portfolio. For more information on this month’s deletion and addition, read the April SSR Monthly Report. March Market Recap With the fourth-quarter earnings season all but finished, and with the consensus that the Fed won’t be raising interest rates again until at least June, investors and traders…

 

Trump Issues Ultimatum on Health Care Reform as Legislative Agenda Hangs in the Balance

U.S. stocks turned in their weakest weekly performance since before the November presidential election. The S&P 500 saw its first move of more than 1%—up or down—since December 7 and notched its first daily decline of more than 1% in 110 trading days, dating back to October 11. The SSR portfolio saw its poorest weekly…