By Justin Carbonneau Imagine this: 80 years ago, you won a prize that promised 13 payments of $10,000 to be paid out over time. You think you’ve finally got lucky, hit the big one. That is, until you read the fine print: Terms & Conditions You must invest the money in the U.S. market, as represented by the S&P 500. You can’t touch the money once invested. You can’t look at the investments’ performance until… Read More
Have you ever heard a song that jogs a strong memory, motivates you in a powerful way or makes you think about things you wouldn’t otherwise consider? This happened to me the other day while listening to some of the late Tom Petty’s biggest hits. I couldn’t help but notice how many of the lyrics related to the world of investing, which sent me on a fun and enlightening mission of combing through this rock… Read More
By Justin Carbonneau (@jjcarbonneau) They say a picture is worth a thousand words. The pictures and charts outlined below may actually be worth much more: 30 million unemployed. $7 trillion on the Fed’s balance sheet. Just how much the Amazons, Googles and Large Cap technology stocks have delivered over other areas of the market like value. A 250% increase and a 50% decrease in Internet search trends and behavioral shifts. 40 years of falling interest… Read More
By Justin J. Carbonneau The recent declines in the market along with the overall shutdown of the economy may have many investors feeling a little hopeless and paralyzed—all completely normal feelings in times like these. However, periods like this also present opportunities for those who have the self-confidence to look closely at certain parts of their finances and overall financial plan. To that end, I’ve come up with 8 strategies that could improve short- and… Read More
By Justin J. Carbonneau As of this writing, the S&P 500 will have dropped close to 30% in less than 20 trading days. The decline is the fastest drop into bear market territory ever. The degree of health related and economic damage for businesses, profits and employment, a result from fallout of the coronavirus, remains so unknown that stocks in general are getting significantly hit and some industries, like airlines, cruise liners and entertainment concerns,… Read More
By Justin J. Carbonneau “War is a nightmare, war is awful, it is indifferent, devastating and evil. War is hell. But war is also an incredible teacher, a brutal teacher and it teaches you lessons you will not forget.” In a 2017 TED talk, former Navy SEAL, best-selling author, leadership consultant and top podcast host, Jocko Willink, shared his experiences and key leadership lessons that emerged from a battle in Ramadi, Iraq, a seemingly insurmountable… Read More
By Justin J. Carbonneau In December, Barron’s had two good pieces on the legendary Fidelity fund manager, Peter Lynch. Packed with Lynch-isms about successful long-term investing, active stock picking and opportunities into today’s market, the articles got the attention of lots of investors, and rightfully so since Lynch was one of the most successful mutual fund managers ever, retired at the top of his game, and left a long lasting mark on a generation of… Read More
This article was originally published on March 5, 2018, but the performance and stock list has been updated. By Justin J. Carbonneau (@jjcarbonneau) — There is no shortage of evidence showing value investing works over time. From the actual track records of great investors like Warren Buffett, Mario Gabelli, Bill Ruane and Tom Knapp, who were inspired by value investing techniques developed by Ben Graham and David Dodd, to numerous tests and academic studies that have… Read More
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
By Justin Carbonneau (@JJCARBONNEAU) As this Forbes article points out, the 60/40 portfolio is “one of the most dominant investment approaches of our time”. This asset allocation is incredibly simple and it’s worked, but with U.S. stocks up nearly 350% off the 2009 lows and interest rates at historical lows, some investors are wondering if the 60/40 stock/bond portfolio has the same risk reduction and return benefits as it has in the past. This article… Read More