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.
Mickey Kim
Articles
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.
KIM: Golf’s vexing challenges also apply to investing
Golf is not only a metaphor for life, but for investing also.
KIM: For funds needed soon, zero is often ideal return
People frequently ask me how they should invest their money. While everybody’s situation is different, I always advise them to not invest any funds likely to be needed in the next three to five years.
KIM: ‘Shoot first’ trading mentality dangerous to financial health
High-frequency” trading firms spend billions in a high-stakes arms race to gain a millisecond’s edge on executions. But while speed may be valuable to traders, it can be extremely detrimental to investors.
KIM: Career wisdom found everywhere, even in trash
Life lessons can be learned in every job, no matter how humble.
KIM: Simple financial solutions not always easy to follow
The two things you can do that will have a big financial impact are both elegant and radical in their simplicity: Spend less and save more.
KIM: Fed policy uncertainty fueling market volatility
Volatility returned with a vengeance in the first quarter of 2015, as investors grappled with increasing uncertainty associated with Federal Reserve policy, signs the U.S. economy has hit a soft patch, and lowered expectations for corporate earnings.
KIM: Invest with managers who ‘eat their own cooking’
It’s logical that you want to invest with a manager who has a significant amount invested alongside you. Why? The manager’s financial interests are aligned with yours.
KIM: More wisdom from Buffett: Don’t bet against America
Buffett believes in America and puts his money where his mouth is.
KIM: How the ‘Oracle of Omaha’ built Berkshire Hathaway
To understand the evolution of Buffett’s investment process, it’s important to know his history with Berkshire.
KIM: ‘Mini-tenders’ not part of investor Happy Meal
Mini-tenders are often used to catch small investors off guard and take advantage of their lack of knowledge.
KIM: What investors can learn from last Super Bowl play
Outcome is the result, but doesn’t tell you anything about how that result was achieved. Outcome is about the “right now.
KIM: Overly narcissistic CEOs are toxic to companies
Narcissism can be a precursor to selfish and/or unethical CEO behavior, which can also cause your investment to perish.
KIM: Enjoy our low oil prices; here’s why they tumbled
At a basic, Economics 101 level, an imbalance has developed between supply and demand.
KIM: Resolve to get comfortable with uncertainty in 2015
if you can get comfortable with uncertainty; adopt a long-term perspective; and follow a disciplined, patient and unemotional investment approach, you’ll be miles ahead of most investors.