SKARBECK: Big investment scores few and far between
The dream for many investors is to buy a stock that hits the home run—a desire for the lucrative multi-bagger (insert five, 10 or your pick in place of “multi”.)
Ken Skarbeck
Articles
SKARBECK: Buy-and-hold can still work
The investment math of compounding at high rates of return over long periods can lead to astonishing results.
SKARBECK: Big-company stocks did better than small firms
In 2011, large-capitalization, high-quality U.S. stocks significantly outperformed small-company stocks.
SKARBECK: Despite problems, U.S. still land of opportunity
Yes, America struggles with instances of poverty, unemployment and other hardships. But we also have the freedom and the opportunities available to improve our standard of living.
SKARBECK: Hidden 401(k) fees can kill retirement savings
Remarkably, a recent AARP survey found that seven out of 10 participants (employees) incorrectly believe they do not pay any fees for their 401(k) plan.
SKARBECK: Judge says no-fault SEC deal is weak, ineffective
A federal judge in Manhattan took a stand against lax oversight of the financial industry, rejecting a $285 million settlement between the Securities and Exchange Commission and Citigroup—and setting a July trial date.
SKARBECK: ‘Parity’ strategies confuse market volatility with risk
The basic idea behind risk parity is to reduce the weight of stocks and increase the weight of bonds to balance the volatility.
SKARBECK: Bankruptcy shows how far financial system has to go
The failure of brokerage MF Global—the eighth-largest bankruptcy in U.S. history—is troubling: It demonstrates that behavior and incentives have not really changed in some corners of our financial system, and that regulators are still behind the curve.
SKARBECK: Recovery will require sacrifices on all fronts
While Wall Street bankers are the chosen target of the protesters in New York City’s Zuccotti Park, the breadth of the movement clearly is a sign of citizens’ frustration with the economic and political landscape.
SKARBECK: Gain fortitude by knowing what companies you own
It is essential to understand that shares of stock represent the fractional ownership of an operating business.
SKARBECK: Don’t wait for the robins when making investments
As Warren Buffett counseled in October 2008, “If you wait for the robins, spring will be over.”
SKARBECK: Money-market funds have big risk, little reward
In this environment of near-zero short-term interest rates, money-market fund operators have to work very hard just to earn a few bucks on the substantial sums of money entrusted to them.
SKARBECK: Global investors should heed exchange rate trends
Exchange rates are determined, at least in theory, by purchasing power parity.
SKARBECK: Market volatility should be seen as an opportunity
To a long-term, value-oriented investor, volatility should be viewed as opportunity. The crazy prices that are occasionally offered up by a roller-coaster market in periods of uncertainty allow for the purchase of undervalued securities.
SKARBECK: Regulators aren’t so bad, and we really need them
while the cost of regulatory compliance can be annoying, they do serve a vital societal function—consumer protection.
SKARBECK: Emerging countries offer high-growth opportunities
Enterprising investors willing to conduct the necessary due diligence may seek to discover high-growth opportunities in emerging-country investments.
SKARBECK: Global economy extends beyond usual suspects
the global economy extends to many regions and countries that, while smaller in economic stature, are often overlooked.
SKARBECK: Getting out of a hole requires digging by all
We live in a fantasy world if everyone thinks we need to cut back on spending unless it affects them.
SKARBECK: Businessws with ‘moats’ more likely to succeed
In economic terms, consider a business that has a “sustainable competitive advantage” that serves as a moat against the competition. A business that can stave off the competition is likely to produce attractive profits.
SKARBECK: Latest investment tool to tame risk is no panacea
The idea behind tail-risk hedging is to provide protection to a portfolio against a disastrous event that would wreak havoc on the markets—a so-called “black swan” event made famous by Nassim Taleb’s book “The Black Swan: The Impact of the Highly Improbable.”