I have often wondered whether financial independence is an end in itself. The goal of financial planning is to basically create a corpus for a goal like retirement. This corpus must replace your current income stream in inflation adjusted terms. And it is all good. Getting out of debt, high rates of savings and investing … Read more
“We are convinced that our 50-50 version of this approach makes good sense for the defensive investor. It is extremely simple; it aims unquestionably in the right direction; it gives the follower the feeling that he is at least making some moves in response to market developments; most important of all, it will restrain him … Read more
“Miss Tomlinson ends her discussion of this ultrasimple investment formula with the striking sentence: ‘No one has yet discovered any other formula for investment which can be used with so much confidence of ultimate success, regardless of what may happen to security prices, as Dollar Cost Averaging.’”- The Intelligent Investor The core objective of diversification … Read more
“The art of investment has one characteristic that is not generally appreciated. A creditable, if unspectacular, result can be achieved by the lay investor with a minimum of effort and capability; but to improve this easily attainable standard requires much application and more than a trace of wisdom.” – The Intelligent Investor Assuming that I … Read more
“The virtues of a simple portfolio policy have been emphasized – the purchase of high grade bonds plus a diversified list of leading common stocks – which any investor can carry out with a little expert assistance.”- The Intelligent Investor Individual investors are interested in getting answers to questions like which stocks to buy, at … Read more
“In any case, the investor may as well resign himself in advance to the probability rather than the mere possibility that most of his holdings will advance, say, 50% of more from their low point and decline the equivalent one-third or more from their high point at various periods in the next five years.” – … Read more
“The Defensive Investor will place his chief emphasis on the avoidance of serious mistakes or losses. His second aim will be freedom from effort, annoyance and the need for making frequent decisions”- The Intelligent Investor “The determining trait of the enterprising investor is his willingness to devote time and care to the selection of securities … Read more
It is structurally not possible for mutual funds to implement value investing, in its completeness. Structural Constraints Mutual funds are essentially slaves of their investors and their temperament. Simply because of the structure of mutual funds and the need to beat an index on a monthly, quarterly, annual basis, it is almost impossible for mutual funds … Read more