In a press release dated April 21st, 2015 Dalbar research posts a chart from their annual Quantitative Analysis of Investor Behavior (QAIB) study for 2014. Below is the chart. The chart shows the cumulative returns by time or years of investors versus the S&P 500 Index and Barclays Bond Index. According to their study you … Read more
Throughout many of the books I’ve read by successful investors there is one common tactic to the successful methods of different investors. This tactic is “rules based investing.” In passive investments such as indexing after developing a balanced portfolio based on the investor’s risk parameters rebalancing a portfolio annually to keep their balanced allocations in … Read more
The great recession hit in 2008. I like many others watched as the financial markets eroded. Fortunately, I didn’t experience the entire fallout like so many others did, but it was an eye opening experience for me. I thought I knew enough about investing from my Smith Barney training whereas I would know what to … Read more
The hardest part of investing is the ability to do nothing. That’s right, nothing. We as humans are built to make decisions all the time for survival and planning. In fact, it is estimated that a single human being makes on average approximately 35,000 decisions in a day. This number seems crazy high, but if … Read more
“If no one ever took risks Michelangelo would have painted the Sistine floor.” -Neil Simon “Take calculated risks. That is quite different from being rash.” -George S. Patton “Be brave. Take risks. Nothing can substitute experience.” -Paulo Cuelho The verb of experience is defined as “to encounter or undergo an event or occurrence.” Makes sense. … Read more
If you are an investor your worst enemy is you. We all doubt ourselves, or do things without putting in the proper work, or make impulsive decisions without a plan. Many of the professional investment books written by professionals with successful track records address this topic, since it’s the hardest aspect of investing to conquer. … Read more
In 1940 Congress created the Investment Act of 1940. This Act was essentially rules created to stave off another stock market crash like the one that happened in 1929. The Investment Act of 1940 was put in place to better regulate the investment industry. One of the provisions of the act is that it permits … Read more
I love wine. Wine is more than a drink or a beverage. It’s a journey. A story from somewhere I am not. When I taste a wine it takes me to the place where the wine was made. It creates visions of the land, the scenery, the grape vines growing, the earth of each vineyard, … Read more
In the highly successful book Rich Dad Poor Dad by Robert Kiyosaki, he discusses the traditional lifestyle choices of a family and the usual general advice given to their children of studying hard and getting good grades. They are asked to finish high school and college so they can find a good job when they … Read more
Collecting rents from the stock market is easy. Income property ownership when purchased properly, so it generates a positive cash flow, can be a solid investment that over time produces wealth and pride of ownership. Real estate is something tangible or a physical asset that can be touched and seen verses a share of stock … Read more