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.
Don’t let the excitement and envy of somebody else’s hitting an improbable jackpot blind you to the cold, hard, mathematical probabilities of long-term investment success.
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.
Sentiment has been crushed. Some investors have lost faith, thrown in the towel, and abandoned the stock market.
It is essential to understand that shares of stock represent the fractional ownership of an operating business.
As Warren Buffett counseled in October 2008, “If you wait for the robins, spring will be over.”
The “Morningstar Style Box” was introduced by the Chicago-based research firm in 1992 to help investors and advisers determine the investment style of a fund.
Wouldn’t it be nice to be smart enough to sell at the top and nimble enough to buy back in at the bottom?
Exchange rates are determined, at least in theory, by purchasing power parity.
First, by and large, community banks did not participate in the activities that led to the financial crisis.
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.
It seems perfectly logical that you want to invest with a manager or fund where the manager has a significant amount invested alongside you.
while the cost of regulatory compliance can be annoying, they do serve a vital societal function—consumer protection.
For investors, the time to be nervous is when there’s nothing but blue skies on the horizon. The time to be opportunistic is when there’s blood running down the street and the high-paid talking heads are screaming that the sky is falling.
the global economy extends to many regions and countries that, while smaller in economic stature, are often overlooked.
We live in a fantasy world if everyone thinks we need to cut back on spending unless it affects them.
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.
One thing that does stand out is that, on balance, these returns are not exactly going to get investors to sit up and get excited.
One analyst even declared that, relative to disposable income, housing is more undervalued than at any time in the last 35 years. So it is an attractive time to buy a house if you plan to be a long-term owner.
The public must understand that the arguing in Washington over raising of the debt ceiling is just political posturing.
