KIM: The NFL draft exposes behavioral-finance truths
The NFL draft is rife with false beliefs and destructive decision-making. The same could be said of investing.
Mickey Kim
Articles
KIM: Stomach-churning periods aren’t unusual for market
The first quarter provided excellent examples of some timeless investing lessons. The stock market is inherently volatile.
KIM: Beware of crowdfunding investment opportunities
Come May 16, 2016, companies seeking capital and speculators looking for the proverbial pot of gold will have a new way to meet when rules created by the SEC’s “Regulation Crowdfunding” take effect.
KIM: Buffett tells shareholders ‘America’s never been greater’
As usual, Berkshire Hathaway CEO Warren Buffett’s annual letter to shareholders contained both timely commentary and timeless investment wisdom, delivered with wit, simplicity and humility
KIM: Map to financial freedom can fit on an index card
Instead of being a calm, careful financial steward following a plan, do you find yourself constantly fretting about money and getting caught up in a losing game of financial Whac-A-Mole? If so, you’re not alone.
KIM: We’re in a bull market for apocalyptic forecasts
There is no shortage of market pundits and others whose modus operandi is to play/prey on investors’ fears by painting a picture of impending doom and gloom, whether supported by the facts or, in most cases, not.
KIM: Herd mentality dangerous for coaches and investors
Investors are often reluctant to act on their own information and go against the comfort of the herd, fearing damage to their reputations as sound decision-makers.
KIM: Big stocks’ strength masked weakness of overall market
The major stock market indexes showed flattish performance in 2015, but only because the largest-capitalization stocks did well.
KIM: Woes at investment firm highlight need for liquidity
The SEC has been concerned about exactly this scenario caused by the mismatch between a fund offering its shareholders daily access to their money while a significant proportion of its assets are illiquid (i.e. cannot be sold quickly without affecting price).
KIM: Facebook founder rocks world of philanthropy
Modern billionaires approach charitable giving in unconventional ways.
KIM: Trump’s bankruptcies hold important investor lessons
In a typical Chapter 11 bankruptcy reorganization, all parties suffer (except the lawyers). Creditors take a significant “haircut” on the amount owed and the owners’ investment is effectively wiped out.
KIM: Forget the door busters; give the gift of education
Skip buying “Star Wars” gear and instead establish or make a gift to a young person’s 529 College Savings Plan account.
KIM: Funds set to distribute year-end lumps of coal
Fund investors endured harrowing plunges in 2015. Absent a year-end rally, returns will be disappointingly modest.
KIM: Recent market volatility is really rather ordinary
The road to reaching long-term outperformance is bumpy, but that doesn’t make these short-term periods of weakness any easier to take.
KIM: New College Scorecard aids investment decision
The college represents the most important investment a student will make, so you want to maximize your expected return by carefully weighing all the factors.
KIM: Bear-market funds can maul investors’ long-term returns
For the vast majority of investors, bear-market funds just don’t make sense.
KIM: Long-term investors let volatility be their friend
We’re biologically wired to avoid losses at any cost, and the bad memories of 2008 are still fresh. So it is perfectly understandable that investors are having a visceral reaction and feeling a great deal of anxiety. By the same token, we believe investors must overcome these biases in order to succeed.
KIM: Lenders also to blame for Greek debt tragedy
Greece shoulders most of the blame for its third trip to the brink of default in five years, but it takes two to tango and Greece had a most willing accomplice: the lenders themselves.
KIM: Stock buybacks can be a harmful ‘sugar high’
The combination of higher EPS and company buying usually provides a short-term boost to the stock. This makes Wall Street happy, keeps the activists at bay, and helps management enhance the value of its stock options and meet bonus targets.
KIM: External shocks to stocks are usually short-lived
The U.S. stock market has historically rebounded well and quickly from bad world news.