Warren Buffet once said that “diversification is protection against ignorance. It makes little sense if you know what you are doing.”1 In other words, within the vast universe of stocks and bonds, why buy a grab bag of both winners and losers, if you can identify the winners and just pick those? Mr. Buffet has… Continue reading When Diversification Means You Don’t Know What You’re Doing
Tag: Stock Market
Study Shows That Costly Investment Biases Are More Prevalent In Selling
We are all biased in many ways. Sometimes it’s a good thing, like when we’re predisposed to give family and close friends the benefit of the doubt, sticking up for them when someone else mentions a shortcoming. Sometimes it’s bad, like when a certain brand of car cuts us off in traffic and because we’re… Continue reading Study Shows That Costly Investment Biases Are More Prevalent In Selling
The Siren Song of Individual Stock Investing
In the classic Greek story of The Odyssey, the hero Odysseus tries to guide his ship full of men safely back home after the Trojan war. One of the hazards they encounter along the way are the sirens. These creatures, part woman and part bird, had such beautiful singing voices they could lure men to sail… Continue reading The Siren Song of Individual Stock Investing
How Emotions Are Hurting Younger Americans’ Potential Stock Market Gains
You’ve probably heard stories of how living through the Great Depression deeply affected some people. Though they were young at the time, for the rest of their lives they saved food packaging, like pickle jars and plastic bread bag clips, just in case another era of privation was around the corner. While being thrifty and… Continue reading How Emotions Are Hurting Younger Americans’ Potential Stock Market Gains