This is a short book that in some ways is a summary of Reinhart and Rogoff’s greater work This Time Is Different: Eight Centuries of Financial Folly. Think of it as an executive summary in book form. How short is it? Less...
Read MoreI’m here this evening to review another excellent book on risk control by David X Martin.This is a difficult book to review, because if I describe what happens, I end up spoiling the book. This is a small book, and I read...
Read MoreI am going to say something that I rarely say: I am grateful that this book was written. Why am I grateful?It highlights the idea that people, even really bright people, do not behave rationally, but imitatively — they...
Read MoreThere was an academic article published recently on the investing of Warren Buffett. Afterward, I thought I saw a few articles reflecting on it, but here is the only one I see now: There’s Warren Buffett — and then...
Read MoreWhat does Washington, DC care about more — people or corporations? Do you have to ask? DC favors corporations, and all three branches of the government support this. Both parties favor this. Why is this so?The...
Read MoreThis occurred to me today, and so I want to toss it out as an idea, even if I never get to work with it. What percentage of stocks are covered by 13F filings? I bet it is pretty high.Here’s my idea: using the 13F filings,...
Read MoreWhen Gary Schilling presented to the Baltimore CFA Society, he made the comment about how much bonds beat stocks by. His proxy for bonds was 25-year zero coupon bonds. Invest in those from 1980 to the present, rolling to the new...
Read MoreI have wanted to write this article for some time, but decided to sit on it in order to consider the matter more closely. What caused the financial crisis of 2008? In my writings at RealMoney, I anticipated much of the crisis,...
Read MoreI’ve finished the book “Bailout” and will review it next week. I am in the midst of the book “The Crisis of Crowding,” and will likely review it next week. What I write this evening is a bit of an...
Read MoreMy last point on investment advice is to think long-term and treat it as a business. You are trying to buy underpriced cash flow streams.Because it is a business, you must focus on the long term, and downplay short cycle...
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