The Miracle of Compounding

The principle underlying all investing goes by many names, but my favorite is “the miracle of compounding.” I learned that from arguably the greatest investor of all time: Warren Buffett. It’s deceptively simple, but don’t be fooled — it’s the most powerful weapon in your arsenal in your fight for independence. Compounding Illustrated Let’s say […]

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Where Do I Begin Investing?

A Phone Call So, last night I received a call from a terrific young lady, the daughter of close friends. She moved out recently after graduating from college and landing her first full-time job. The reason for her call? She heard someone at work tell her she needs to buy some fancy insurance policy “as […]

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The Greece Thing: Phantom Or Real?

Several European governments, banks, and even their central bank have lent hundreds of billions to Greece, who has just said they can’t make the payments. Oops. When I was young and aspiring to be a CFO, someone told me an important lesson in finance: when you borrow $1,000 and you can’t repay it, you have […]

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crossing the fence to etfs

Crossing The Fence To ETFs

The venerable Wall Street Journal recently published an article in which they report that 2013 marked the first year when withdrawals from 401(k) funds exceeded contributions. I’m not surprised, given I’m part of the reason: us baby boomers are retiring in growing numbers. The demographic phenomenon known as the Baby Boom has been known and […]

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A Word From Robert Shiller

You might remember a few months ago I had a long rambling post about the CAPE vs. the POPE. The CAPE, as you might recall, is a special kind of PE ratio created by Prof. Robert Shiller of Yale, a Nobel Prize winner for Economics. This month AAII interviewed Prof. Shiller about the CAPE in […]

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sunset on preferred stocks

Oops… The Catch With Preferred Stocks

As you may have gathered from reading this blog for a while, my wife and I are retired and the focus of our investing has been on stocks paying dividends. After all, in order to take scenic trips every now and then and connect with old friends one needs a spot of income, right? Most […]

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stock market ritholtz

Stock Market Valuation: Another View

Call me lazy, but when someone else says something well, I figure what’s the point of trying to add to it? Barry Ritholtz, as you may know, is one of the guys I follow from a bit of a distance. Here’s a column he wrote on Bloomberg this week about whether the stock market is […]

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