The Investor as a Storyteller

By John P. Reese — The celebrated author Mark Twain said, “It’s not what you don’t know that kills you, it’s what you know for sure that ain’t true.” Twain’s point is well taken, and a keen interpretation of the human condition. As a species, we are extremely accomplished at spinning tales and making meaning, whether based in logic or not, and formulating decisions based on those stories. A precarious tendency when it comes to… Read More

Preserve and Grow Your Wealth With Good Habits & Discipline

By John P. Reese — In a classic episode of the comedy television series Seinfeld, Jerry is told by a rental car agent that although they had his reservation in their system, they had run out of cars. He responded in his inimitable, singular style, with: “You know how to take the reservation, but you don’t know how to hold the reservation. And that’s really the most important part.” I was reminded of the scene… Read More

Finding Stocks Using the Investment Criteria of Great Investors

By John P. Reese — It’s the time of year when notebooks and pencils (okay, iPads and styluses) are replacing flip-flops and swimsuits. Go into any store and you’ll see all the trappings; every food item imaginable in snack-size packaging, backpacks, dorm room accoutrements, and a sea of organizational shelves, bags and boxes. Maybe it’s also a good time to evaluate how organized you are with respect to your investment portfolio. Do you have a… Read More

Master Investors Marks, Dalio & Gundlach Issue Cautionary Views on Markets

By John P. Reese — The waning days of August leave many parents looking forward to the start of school and many investors bracing for September, the month that is historically the worst of the calendar year for stocks. Add the increasing uncertainty coming out of Washington and stock valuations that look increasingly overheated, and it’s enough for a few prominent investors to warn that a pullback is probably on its way. That may not… Read More

Investors: Become “Unshakeable” With These Five Investing Commandments

By John P. Reese — Keep Calm and Carry On was a motivational poster produced by the British government in 1939 in preparation for World War II. The poster was intended to raise the morale of the British public as they faced the threat of mass air attacks. Today, the motto can be found on a seemingly endless array of merchandise ranging from coffee mugs to car seat covers. If only the notion was as widely embraced by investors as it is by… Read More

Building an Investment Checklist

By John P. Reese —  In this year’s letter to Berkshire Hathaway shareholders, Warren Buffett refers to the conglomerate’s “gradual shift from a company obtaining most of its gains from investment activities to one that grows in value by owning businesses.” An article in the Wall Street Journal last month titled, “Warren Buffett’s Berkshire Moves Away from Stock Picking,” underscores the shift in the context of the conglomerate’s offer to purchase power-transmission firm Energy Future Holdings for… Read More

Investors Who Dare to Be Different Stand a Better Chance for Success

By John P. Reese In 2006, Oaktree Capital co-chairman Howard Marks wrote a memo titled Dare to Be Great in which he delivered a simple but provocative statement about investing: “This just in: you can’t take the same actions as everyone else and expect to outperform.” Being different, he argues, is “absolutely essential if you want a chance at being superior.” Going against the herd, however, runs counter to human nature and can be exceedingly… Read More

Investing Like Buffett Means More is Not Always Better

By John P. Reese —  When Warren Buffett was a kid, he liked to read. More than most kids. And we’re not talking comic books and bubble gum wrappers, either. He once recalled receiving the World Almanac as a gift when he was a young boy. “It was like heaven to me,” he says. Is it a coincidence that this voracious reader became one of the most successful investors of all time? Maybe not. When… Read More

Market Indicators Only Part of the Story, Plus Five Fundamentally Strong Stocks

By John P. Reese Among the myriad guidelines that the wise investor follows, diversification sits front and center: Don’t put all your eggs in one basket, either with respect to equities or asset classes. But the notion of diversification extends beyond the process of deciding what to buy. It also applies to the assessment of the market as a whole and the factors affecting it at any given time. The universe of indicators available to… Read More

Underperforming Canadian Stocks with Solid Potential

As major benchmarks continue their “seemingly unstoppable march upward,” writes Validea CEO John Reese in a recent article for The Globe and Mail, “it’s hard for investors to avoid being skeptical”—especially those that got hit hard by the 2000 dot-com bubble and/or the 2008 financial crisis. While he argues that “pessimism is an investing survival instinct,” Reese juxtaposes Warren Buffett’s investing philosophy that “over the long term, a careful investor will see gains.” He explains,… Read More