When Warren Buffett Thanks You for “Client Alpha”

By Justin Carbonneau (@jjcarbonneau) Imagine for a moment you were one of the very first investors in Berkshire Hathaway in 1965 and you’ve stayed committed to Buffett all these years (54 years and counting be exact). You’re meeting him today to profusely thank him for producing the results he has. You say, “Warren, I want to thank you for producing the long-term outperformance over the market you have delivered on my investment. You’ve more than… Read More

Wheat and Oil to Spice Up Returns for Patient Investors

In a recent Wall Street Journal article, columnist Jason Zweig explains how investing in commodities can pay off. Even though assets like oil and gas, corn, wheat, hogs and nickel have been, in Zweig’s words, “stinking up the joint ever since investors raced to buy them during the financial crisis,” he adds that new research suggests commodities “may deserve a small place in the portfolios of iconoclastic investors  who have plenty of patience.” The article… Read More

Stock Market Needs ‘Knights of Faith’

In a recent Wall Street Journal article, columnist Jason Zweig argues that it’s now easier for investors to recover losses after a market dip due to lower trading costs and advances in technology. Even though investors are facing a situation in which future stock returns “may well be lower than the past decade’s lavish annual average of nearly 14%,” Zweig writes, “we should thank our lucky stars for living at a time when we can… Read More

Testing the Buy-and-Hold Gospel

A recent Wall Street Journal article by columnist Jason Zweig dispels myths regarding history’s market crashes and offers insights regarding how they relate to today’s market and to a “buy-and-hold” strategy. Zweig writes, “Everybody ‘knows’ the market collapsed in 1929 because euphoric speculators bingeing on borrowed money drove stocks to absurd heights. That isn’t true.” Although at the time some stocks were expensive, Zweig points out that most weren’t. “Many major companies traded at 14… Read More

Some Investors Turning to God as Portfolio Manager

“Biblically responsible investing, or BRI, is booming as investment managers who are losing assets to index fund strive to find new niches,” writes columnist Jason Zweig in a recent article for The Wall Street Journal. Evangelicals and other Christians are increasingly seeking investment management and financial planning that aligns with their interpretation of “biblical principles.” While some gravitate toward socially responsible companies that “recruit LGBT workers or donate to Planned Parenthood and the like,” he… Read More

What Makes the Smart Money Smart

New studies show that the “so-called smart money is prone to many of the same errors as amateurs,” writes Wall Street Journalcolumnist Jason Zweig. Professional investors, he argues, “rack up high fees for results that a blindfolded chimpanzee would be ashamed of,” adding that they “hold stocks too long,” “react erratically to stock splits,” and “they may even buy one stock when they intended to purchase a different one.” Zweig cites the findings of a… Read More

Zweig: Think Before Buying Chinese Stocks

In a recent article for The Wall Street Journal, columnist Jason Zweig argues that although many U.S. investors appear to be increasing their exposure to China (hoping for high returns due to the country’s economic growth), “those hopes could end in heartache when expectations collide with reality.” Zweig points out: “History shows that countries with faster-growing economies often produce lower—not higher—stock-market returns.” Since Chinese stocks peaked in 2007, Zweig explains, they have lost an average… Read More

What Would Benjamin Graham Make of Today’s Market?

Although value stocks have lagged for a long time, an article by Wall Street Journal columnist Jason Zweig argues that the strategy’s champion, Benjamin Graham, still had the right idea. Zweig notes, “faster-growing, higher-priced stocks have outperformed by such huge margins that the long-run advantage of value stocks has withered away. Will that last? Probably not. Was Graham wrong? Almost certainly not.” The article points out three important tenets of Graham’s teachings: A stock “isn’t… Read More

A Dinner with Charlie Munger

In an article for The Wall Street Journal, columnist Jason Zweig recounted a dinner with Berkshire Hathaway vice chairman Charlie Munger. Describing Warren Buffett’s 95 year-old business partner as a man with a “superabundance of stamina, curiosity and concentration that many people a third his age would envy,” Zweig adds, “Charlie Munger is a living reminder that to be a great investor, you must be a great learner.” Here are some highlights and key insights… Read More

Individual Investors May Not Be “Dumb Money” After All

In a recent article for The Wall Street Journal, columnist Jason Zweig writes, “Bit by bit, the myth of the ‘dumb money’ is dying.” Although Wall Street has long characterized individual investors as being “ill-informed, fickle and hapless” and therefore in need of fee-based advice, Zweig argues that the claim is “nonsense” and that “new evidence of its foolishness is piling up fast.” He cites a recent study of Vanguard Group clients that shows them… Read More