Tools You’ll Need for the Next Bear Market

By John Reese (@guruinvestor) —  Hoping for the best but preparing for the worst is a good rule-of-thumb, a maxim that can help us stay measured and mindful when it comes to dealing with life’s inevitable ups and downs. But it can be hard to think about potential downs when the ups have been around for a while—and the current, nearly nine-year-old bull market is a perfect example of that. Since March of 2009, the… Read More

How to Keep Investing Perspective

By John Reese (@guruinvestor) —  “Perspective shifts us from worry to options.” Wise words written by Carl Richards, CFP in his Behavior Gap email last week—and timely given the up-and-down market environment we’re facing. Richards, creator of The New York Times Sketch Guy column, also offered his depiction of how perspective can benefit us: Richards recounts a white-water rafting experience during which, when feeling worry while approaching the rapids, he found comfort in stopping the boat… Read More

Become an Equity Compounder à la Buffett

By John Reese (@guruinvestor) —  It’s a simple concept but, over time, it accomplishes extraordinary things. That’s how legendary investor and stock market guru Warren Buffett has described compound interest, a concept that Albert Einstein called the “eighth wonder of the world.” The idea is simple: If you invest even modest amounts of money at modest rates of interest and leave it invested over long periods of time, it can grow exponentially–since the interest you earn each year… Read More

The Meb Faber Show – John Reese: There Is No Strategy That Outperformed the Stock Market Every Single Year

We are usually not ones to practice nepotism, but this discussion with Meb Faber and our founder John Reese is a very good one. The podcast focuses on John’s quest to computerize the strategies of legendary investors using factor-based models. They also take in an in depth look at the model John created based on Warren Buffett and the challenges of breaking down Buffett’s extensive stock selection criteria into a computer program. And those are… Read More

Blending of the Best of Active and Passive

By John Reese (@guruinvestor) — (interested in Validea’s investing system and guru models? learn more about this webinar) Register now Like most things in life, investing in the stock market means different things to different people and encompasses a wide array of approaches—along with an endless supply of debate regarding which may be the best. There is no one-size-fits-all strategy, and every investor should follow a methodology that aligns with their financial goals and unique level… Read More

Stock Market Lessons Learned in 2017

By John Reese (@guruinvestor) — Over the past twelve months, we’ve seen the bull market continue to trudge ahead with highs in many U.S. indexes and growth in various sectors and industries. With the news of major tax reform comes optimism for continued corporate earnings strength. That said, however, there are also growing concerns regarding an overvalued market and a potential correction. Let’s review what we’ve learned over the past twelve months: Bull markets don’t… Read More

Luck or Skill? Focus on the Process, not Performance.

By John Reese (@guruinvestor) —  Is it better to be lucky or smart? When it comes to investing, I think we can all agree that success arises from a combination of the two, but to what degree has been the subject of much debate. Those who are well-studied in behavioral finance would tell you that investing is rife with the illusion of skill—an investor’s inflated, misplaced confidence in their own abilities to choose winning stocks.… Read More

Focus on Fundamentals Rather than “Expert” Forecasts

By John Reese (@guruinvestor) —  American philosopher and educator Nicholas Murray Butler once said, ” An expert is one who knows more and more about less and less until he knows absolutely everything about nothing.” His words, both wise and timeless, could apply to “expert” market forecasters. Butler (1862-1947) was president of both Columbia University and the Carnegie Endowment for International Peace, as well as a recipient of the Nobel Peace Prize–distinctions which would make… Read More

Systematic Selling Helps Keep Emotions In Check

By John Reese (@guruinvestor) —  Deciding what stocks to buy and when to buy them is a question that can plague investors. But deciding if and when to sell can be equally if not more daunting. After all, you don’t want to leave money on the table by getting out too soon. On the other hand, if you wait in the hopes that there’s more upside, you run the risk of quite literally leaving money… Read More

The Active Versus Passive Debate is Not Binary

By John Reese (@guruinvestor) —  There is an undercurrent running throughout the investment community suggesting that active stock-picking is the root of many investor ills, and one that has robbed them of returns. I would argue, however, that the debate is more gray than black and white. Passive investing, an approach in which investors buy a broad cross-section of the market and weight holdings based on market capitalization, is a rules-based, disciplined strategy that strives… Read More