Today, I’ll continue on with my review of Graham’s The Intelligent Investor with a discussion of the sixth chapter of the book.
Chapter 6 of The Intelligent Investor discusses:
- Junk bonds
- Foreign bonds
- New stock issues – IPOs
I recently listened to an interview with Nobel Prize winner Robert J. Shiller on the topic of finding the perfect portfolio. It’s a very interesting subject, so I’ll summarize the interview and discuss the key concepts.
Before we dig deeper, let me first describe a few interesting interview intros. Shiller didn’t get the Nobel Prize for nothing as he correctly identified that stocks were in a bubble in the 1990s, and that real estate was in a bubble in the 2000s. More →
We all like common stocks, but in this stage of the economic cycle we should also be defensive. Therefore, it’s a perfect time to discuss Chapter 5 of Benjamin Graham’s book The Intelligent Investor – The Defensive Investor and Common Stocks.
The topics we’ll discuss today are:
Last week, the stock market was positive for half of the week and then negative for the remainder. More →
A stock market crash is always around the corner.
In the last 18 years, we’ve seen two crashes of 50% and if you live in the Netherlands, you still dream of those 2000 highs. Nevertheless, a 9-year bull market quickly erases all the painful memories.
But forgetting what happened and how it looked is dangerous. If you haven’t lived through a stock market crash, you should at least try and think about it in order to be prepared as much as you can be.
At the beginning of this century, London Business School professors Elroy Dimson, Paul Marsh, and Mike Stauton wrote a seminal book on stock market investing titled Triumph of the Optimists where he described what has happened over the past 100 years.
Today, we’re going to go through his findings and through his updated findings that he publishes annually for Credit Suisse in order to see what we can expect from long term investing returns.
We all think the stock market is the best and only thing one should invest in, but is it really and were the last 100 years just the triumph of the optimists? Let’s find out. More →
As I’m writing this, the Russian ETF (ERUS) has lost 12% in one day. As many value investors know, you need to buy stocks when there is blood in the streets so I’ve had many questions about whether this is an opportunity or a trap.
Let’s take a look at what’s going on, look at the fundamental perspective, and the stock market perspective on investing in Russia.
Investing in stocks is just one part of your financial life picture and perhaps secondary, not primary.
Stock price fluctuations and the amazing success of the past 35 years make it seem like the stock market is the most important thing when it comes to your finances. However, in this motivational personal finance article, I’m going to discuss something more important and touch on the complete personal finance picture which in the end, if done smartly, will lead you to your financial goals. The stock market might not lead you to your goals as 30 years of negative cumulative returns aren’t uncommon. More →
Today, we’ll continue on with our series on The Intelligent Investor and applying Benjamin Graham’s everlasting knowledge to the current market in order to avoid doing stupid things while taking advantage of others’ stupid actions.
Graham’s data goes up to 1971, so we’ll first look at his data and later discuss the insights that can be applied to the current market situation.
The main points Graham emphasizes that we can learn much from are:
If you are familiar with the Philadelphia 76ers, you know what “trust the process” means. For those of you who aren’t familiar, here is a short explanation:
What Is “Trust The Process”
The Philadelphia 76ers are an NBA team. In the NBA, you get players by drafting them from universities through an annual draft. The worse of a team you are, the more chances you have to get a higher draft pick in the draft lottery. More →