4 May

Perseverance in Down Markets

May 4, 2015Printer-Friendly VersionThe first Sunday in April is always one of my favorite days of the year as it typically marks the final round of The Masters Golf Tournament. This year, defending champion Jordan Spieth entered the final 9 holes of the golf tournament with a 5 shot lead. He had been flawless through 63 holes and it was almost a foregone conclusion that he would march through the final 9 holes and be the first back-to-back champion since Tiger Woods in 2001-2002. He bogeyed 10 and 11. Then he stepped to the tee of the famous 12th hole, a 155-yard par three, the middle hole…

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13 Oct

Short-Termism

October 13, 2015Printer-Friendly VersionWhat does Vanguard’s CEO, a portfolio manager, and an economist have in common? They all agree investors focus way too much on the short-term. “Looking at investments in less than a 5 to 10 year window is time wasted. People should be thinking in 10-year increments around their portfolios because it’s really difficult to have any sense in the short-run what is going to happen.” Bill McNabb, Vanguard’s CEOShort-termism refers to an excessive focus on short-term results at the expense of long-term interests. How do you define “short-term” in investing? My argument has always been that any money you inte…

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