ABC News reported yesterday that President Trump contradicted 4 of his campaign positions in 1 day. It is not unusual for a politician to reverse some positions once the election is over, but the Trump administration’s progression since the election has been unusual, to say the least. After an impatient start that involved signing a record number of executive orders, Trump ran into a wall with his healthcare plans. Rather than try to climb the wall or find a door, he tried to break through it with his bare hands, but after hitting it a few times, he just gave up and walked away. Trump then reorganized his National Security Council, demoting his controversial advisor Steve Bannon. Now, I suspect that a lot of things he campaigned on are less likely to happen. Continue reading “Shorting Trump: A Starting Point”
Book Review: Buffett’s Bites
This book introduces the reader to the letters that Warren Buffett writes to his shareholders in the Berkshire Hathaway Annual Report. Buffett also includes a “Shareholder’s Manual” in the report, which Rittenhouse uses material from as well. This is a great introduction to fundamental concepts of value investing, the strategy which Buffett has used to build a personal net worth of over $70 billion.
Warren Buffett is more than a successful investor and business owner, he is a role model for all of us. One of the core values of his life has been stewardship. He finds business that are run by great people who truly care about their craft, invests in them or purchases their company, and then continues to let them manage and do their great work while he stays out of the way. He feels deeply committed to his shareholders, and strives to give them great returns and more than enough information about the company, as well as other sage advice.
Rittenhouse is obviously a big believer in Buffett. She writes passionately about him and his work, and she writes so much like him that at times you forget whether you are reading his words or hers. This quick read is well worth the time for any investor, even if the extent of your investment is only a few mutual funds for your retirement. Value investing isn’t only a stock market strategy, it can be a model for all the economics of life.
Which Stock Sector Does the Most to Diversify a Portfolio?
If you are trying to diversify a portfolio by sector, exposure to certain sectors may have more effect than others. This examination of correlations between SPDR Sector Select funds over the last 10 years shows that certain sectors do, in fact, have less correlation than others. Continue reading “Which Stock Sector Does the Most to Diversify a Portfolio?”
An Example of the Importance of Reallocation
When is the last time your checked your investment allocations? If it has been a few years, a lot has changed in the market. Stocks have reached record highs within the last few months. These gains have probably provided you with a great return. However, they can also set a portfolio’s allocations off-balance. Continue reading “An Example of the Importance of Reallocation”
