Debating with the Oracle of Omaha

It’s tough to argue with one of the most legendary investors of all time, but Paul Merriman (founder of Seattle-based Merriman Wealth Management) apparently takes exception with some of Warren Buffett’s principles, particularly as they relate to investors in retirement. In a recent MarketWatch article, Merriman outlines his interpretations and gripes with seven Buffett principles: Hold plenty of cash to withstand financial challenges and don’t be afraid to use it for “lucrative investment opportunities.” According… Read More

Every Crisis is Different

It would be great if we could extract lessons from every financial crisis and then apply those lessons to avert future crises. Alas, writes Morningstar columnist John Rekenthaler, “The market’s turning points are never evident until after they have occurred.” That’s not to say, however, that some don’t read the writing on the wall and act accordingly. Rekenthaler writes, “Investors of various backgrounds figured out the housing bubble before it popped. Many more anticipated the… Read More

The Fool’s Housel on Brexit: Hurry Up and Wait

Thursday’s vote by the U.K. to leave the European Union has precipitated a host of commentary across countless channels. Last Friday, Morgan Housel of The Motley Fool offered frank advice about what investors should be doing. And that is…nothing. By voting to leave the EU, Housel says, the U.K. has ceded to France its title as the world’s fifth largest economy. But as far as The Motley Fool is concerned, the path is clear. “We’re… Read More

Buy and Hold, Then Hold Some More

The old adage “if it ain’t broke, don’t fix it” can apply to many situations, and perhaps the world of investing is among them. A recent article in Investment News discussed the strong performance of the Voya Corporate Leaders Trust (LEXCX), a fund born during the Great Depression. In 1935, its founders bought the 30 largest companies (ruling out financials due to an understandable distrust of the sector). They believed that if a company could… Read More

Primecap: A Growth-Oriented, Independent, Long-Term-Focused Shop

Barron’s profiles Primecap Management, which it describes as “one of the best fund shops you’ve never heard of.” All of its six mutual funds are beating at least 86% of their peers over the last decade. The firm began in 1983 when Howard Schow founded it with Theo Kolokorones and Mitchell Milas. A year later, legendary advocate of passive investing and founder of Vanguard Jack Bogle put up $100,000 in seed money to launch the… Read More

Warren Buffett’s 5 Tips For Long-term Investing

“I know what markets are going to do over a long period of time,” says Warren Buffet in a recent clip presented by Asset TV, “they’re going to go up.” But over the short, Buffet says, “I never know what markets are going to do.” This leads to the first of what the video characterizes as his five tips for long term investing, which are: Don’t try to time the markets. Don’t be afraid of… Read More

How Taking a Break from Checking Your Portfolio Can Help with Returns

With smartphones and tablets and 24-hour financial news channels making stock market data instantaneously available, many investors spend a lot of time monitoring their portfolios’ every movement – too much time, says Validea CEO John P. Reese. Reese says many investors would be better served by looking at their investments less often and taking a long term perspective. “The truth is that short-term fluctuations in asset prices really aren’t that meaningful,” Reese writes in his… Read More

O’Shaughnessy Emphasizes the Value of "High-conviction" Buybacks Over the Long Term

Jim O’Shaughnessy, O’Shaughnessy Asset Management, says a long-term investor should be buying now, and compares “low-conviction buybacks” (defined as 5% or less) and “high-conviction buybacks” (over 5%) in identifying attractive stocks. From 1987 to 2014, he says, the return on low-conviction buybacks was 12.1% annually (about 1% over return on all large stocks), but the return on high-conviction buybacks was 15.9% annually. Further, he says that the buyers of these high-conviction buyback stocks “were buying… Read More

O’Shaughnessy Emphasizes the Value of “High-conviction” Buybacks Over the Long Term

Jim O’Shaughnessy, O’Shaughnessy Asset Management, says a long-term investor should be buying now, and compares “low-conviction buybacks” (defined as 5% or less) and “high-conviction buybacks” (over 5%) in identifying attractive stocks. From 1987 to 2014, he says, the return on low-conviction buybacks was 12.1% annually (about 1% over return on all large stocks), but the return on high-conviction buybacks was 15.9% annually. Further, he says that the buyers of these high-conviction buyback stocks “were buying… Read More