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…

 

AAII’s Most-Read Articles for September 2016

Here are the Top 10 articles from AAII.com for September 2016 (based on unique page views):   Why Buy Bonds If Interest Rates Will Rise? Starting a bond ladder creates income now and produces cash flow that can be used to reinvest if and when interest rates do rise. The Top 10 Economic Indicators: What…

 

Do You Need Growth for Successful Stock Picking?

A new stock screen I created omits one characteristic that may surprise some (or perhaps many) of you: growth. Nothing in the screen requires a passing company to be growing revenues or profits. It is an admitted deviation from how I’ve previously looked for stocks. I’m not alone in omitting growth. The four AAII Stock…

 

Jeopardy! Shows Humans Don’t Maximize Profits

One of the common behavioral biases is anchoring. Anchoring is basing expectations and viewpoints on previous, often recent, information. An example would be the yield on the 10-year Treasury note. The benchmark bond yielded 1.59% today. If it were to rise over the short term to, say, 2.0%, your opinion would likely be that rates…

 

AAII Journal September 2016 Issue

The September 2016 AAII Journal is Now Available Online. Feature Article: The Top ETFs Over Five Years: Health Care Loses Some Ground Six of the 10 top-performing ETFs are from the health care category; homebuilding, consumer staples and bond funds are also on the list. Also in This Issue: Portfolio Strategies: Investing to Avoid the Consequences…

 

Buffett on How Earnings and Assets Can Be Misstated

As I said last year, Warren Buffett’s annual letter to Berkshire Hathaway (BRK.B) shareholders is on my must-read list, and I suggest adding it to yours as well. His letters always provide investing insights written in Buffett’s folksy but outspoken manner. This year’s letter was no different. Though the media focused on the what the “Oracle…

 

AAII Weekly Features–To Trend or Not to Trend

This week’s AAII Weekly Features highlight these valuable AAII articles: “What Works”: Key Findings on Stock Selection Social Security Strategies for Singles To Trend or Not to Trend Calculating Intrinsic Value With the Dividend Growth Model The featured AAII stock screen this week is the Buffettology: Sustainable Growth approach. Our Member Question for this week…