The Warren Buffet Way How He Really Invests For Those He Cares Most About

The following commentary from Fred Taylor is certainly worth a read I always read, with interest, the annual Berkshire Hathaway annual report to shareholders (www.berkshirehathaway.com). Aside from the “obvious” financials that one finds in all annual reports, it highlights the folksy style that Buffet writes in, is very short on typical corporate financial obfuscation and very long on common sense (more on this aspect later). I highly recommend to all a visit to their website and taking some time to peruse the report to absorb not only some of it’s flavor, but also the illumination on the technique and rationale that he and his partner, […] Read more »

The Devil Wears Nada

by Jim Parker Vice President, DFA Australia, Limited The global fashion industry is fickle by nature, pushing and then pulling trends to keep hapless consumers forever turning over their wardrobes. Much of the financial services industry works the same way. Fashion designers, manufacturers, and media operate by telling consumers what’s in vogue this year, thus artificially creating demand where none previously existed. What turns up in the boutiques is hyped as hip by the glossy magazines to make you feel like you “have” to buy it. Likewise, much of the media and financial services industries depend on fleeting trends and built-in obsolescence to keep investors […] Read more »

Watch Out for “The Golden Ticket Trap”

by Jim Parker, Outside the Flags Vice President, Dimensional Fund Advisors In a popular children’s story, the young hero pins all his hopes on finding one of a handful of “golden tickets” hidden among millions of candy bars. It seems many people approach investing the same way. The notion that the path to long-term wealth lies in locating secret and previously undiscovered treasures in the global marketplace of securities is one regularly featured in media and market commentary. One magazine, for instance, runs a feature called “Fund Managers’ Secret Stocks,” referring to supposedly “bargain” stocks the pros keep hidden. (How the stocks can be secret […] Read more »

Surprise! No Selloff in 2013

DImensional Fund Advisors

DFA VP Wes Wellington, whose prose I’ve provided from time to time in my Commentaries, has written an excellent piece reviewing the past year and, as he usually does, focuses on the absurdities provided to us by the media and the financial pundits, their predictions and how those predictions actually worked out. January 7, 2014 Weston Wellington Down to the Wire The unusually strong performance of US stocks in 2013 was a welcome surprise for investors who are following a simple buy-and-hold strategy and a source of exasperation for many professionals caught flatfooted by the steady rise in share prices. It was the best year […] Read more »

Doom and Gloom This Was The Year That Was

With Apologies To The Late David Frost by Fred Taylor I’ve written many times, over the years, regarding the worthlessness of the media — much less the pundits that they quote — regarding prognosticating the future. This applies whether their prognostications are positive or negative — the damage done to investors’ psyches (much less their investment accounts) tends to create either an ongoing case of angst or euphoria. Given the instincts and emotions that have allowed us to survive the millennia as a species, depending upon which phase of the moon is upon us or which phase of the investment cycle, investors seem to vacillate […] Read more »

Eugene Fama Awarded The Nobel Prize In Economics 2013

Fred had another interesting commentary on Eugene Fama: Date: Mon, 14 Oct 2013 16:01:54 -0400 One of the real pleasures in life is to be able to have both one’s opinions vindicated but also having the ability to say: “I told you so!” Back in 1993 or ’94, I predicted that Fama would receive his Nobel Prize within the next five years. Well, I was right — but just a little off on the timing of when his important contribution to the world of financial economics would be recognized. However, now I have the pleasure of saying: I told you so! As many who have […] Read more »