Archive for Investing category:

Buy What You Know; An Investing Technique That Works

This is not a book review… or maybe it is.  Either way, buying stocks of companies that you are familiar with is a successful investing strategy.  Great investors like Warren Buffett and Peter Lynch did this for decades, and made billions with this technique.  We don’t recommend you buy these stocks blindly, or just because [...]

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Index Funds, The Best Get Rich Slow Investment You’ll Ever Make

Slow and steady wins the race, and Index Funds are indeed a slow and steady way to make money in the stock market. If you want a get rich quick scheme, read no further. Warren Buffett, the most successful investor in history, has said it over and over again: “The best way in [...]

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Beat the Wall Street Gurus at their own game

I’m Going to Do the Exact Opposite of What You’re Doing! So There!
If there is one sure rule about Wall Street, it’s that they follow the herd. And it’s hard to make money when you’re just following other people’s investment path. And when the herd starts acting irrationally, driven by fear and not economic reality, [...]

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Buffett explains the financial crisis

In his own unique style, Warren Buffett, being interviewed by Charlie Rose, explains why we are in the middle of a financial crisis.

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Retirement, your 401k and an Insane Market

If you’re like most people, your retirement account has dropped substantially over the last few months, and you’re freaking out.  The end of the world is coming!  Armageddon is here!
The truth is: the stock market goes up and down in cycles.  These cycles usually last 5-10 years.   Take a look at the chart below.

This is [...]

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Getting Back Into The Market; The Sane Way

With the recent market turmoil, you may be wondering what to do with your portfolio.  Should you sell your  stocks and funds, or should you be buying more?
Well, if you listen to the world’s greatest investor, Warren Buffett,  you would be buying.  The market is essentially on sale.  With stocks and funds plummeting, now is [...]

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Monish Pabrai on Bloomberg

Mohnish Pabrai calls himself a “shameless cloner” of Warren Buffett, and that’s fine with us. As the managing partner of Pabrai Investment Funds, Pabrai has been able to return over 26% net to investors since 1999. And his book The Dhandho Investor: The Low – Risk Value Method to High Returns, is highly [...]

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Buying Stocks Without A Broker; The Sane Way

Yes, it’s true. You can buy stocks like Yahoo (YHOO), Wal-Mart (WMT), Home Depot (HD) and Intel (INTC) direct from the company without using a broker. It’s called a Direct Stock Purchase Plan (DSPP) and thousands of companies now offer them.

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7 Reasons why Markel is like Berkshire Hathaway

I recently read a NY Times Sunday article about Markel (note: This is a Times Select article which requires a membership fee.) I greatly enjoyed this article but it led me to thinking. Markel (MKL) apparently is a great company. There are lots of reasons why but the most compelling for me was that [...]

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Dollar Cost Averaging: 101

Dollar cost averaging (DCA) is a technique designed to reduce risk when purchasing stocks or mutual funds. If you have a 401k with your employer you’re already dollar cost averaging every time they purchase stock for you.
The idea behind dollar cost averaging is to repeatedly invest a set amount of money regardless if your [...]

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Legendary Investors Tweedy Browne Re-open Value Fund

Tweedy, Browne & Company, the legendary investors who were Warren Buffett’s brokers in the 1960’s and 1970’s, have announced today that they are re-opening the Tweedy, Browne Value Fund (TWEBX). Their Global Value Fund (TBGVX) will remain closed.
Partners of Tweedy Browne, either past or present, have worked closely with some of the legends of [...]

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Buy Managers, Not Mutual Funds

A Mutual Fund is only as good as its management team. Just ask anyone who stayed in Fidelity Magellan after legendary investor Peter Lynch left in 1990, and received “not so lengendary” returns.
Magellan was just a Mutual Fund, not a living breathing entity. The smart investors realized that Peter Lynch was the [...]

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4 Best Finance Books You Should Have Already Read

What I love about books is that they contain knowledge. Pretty obvious right? But for those of us who are lifelong learners, a well written book with clear concise instructions is a little treasure that is worthy of a prime spot on our bookshelf. Here are 4 books that transformed how I thought and felt [...]

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