Tidbits and the Hardest Thing About Investing Posted on February 5, 2019 By Matt 2019 has been great for investors as the S&P 500 gained 8.86% so far (through 2/4/2019) in reaction to the release of my investment philosophy. Ok, maybe there were other factors at play. If you missed the posts, portfolios should be Risk-Aware, Focused, Elegant, and Realistic. There were also some… Read more
Realistic Posted on January 25, 2019 By Matt This is the fourth in a series of posts about my investing philosophy – Realistic. Investors should be realistic about their expectations and the nature of the markets. No one can predict the future. After hearing 10 years of “The easy money has already been made”, it’s clear that most can’t even… Read more
Elegant Posted on January 18, 2019 By Matt This is the third in a series of posts about my investing philosophy – Elegant. The investment process should be elegant, efficient, and low-friction. Before diving into what that means, Tadas at Abnormal Returns has collected posts that remember investing legend Jack Bogle, founder of Vanguard, who recently passed away. If you’ve… Read more
Focused Posted on January 11, 2019 By Matt This is the second in a series of posts about my investing philosophy – Focused. It can be difficult to keep an eye to the big picture without getting distracted by all the different ways to invest. Focus is about maintaining perspective, understanding why we invest and measuring the success of those… Read more
Investing Dry Powder Posted on January 9, 2019 By Matt I’ve got some dry powder set aside for a situation just like December. During a bear market (when the market drops 20%), the plan is to deploy half of it into equities. The S&P 500 fell 19.4% from September through Christmas Eve. It was chaos on CNBC. This was the… Read more
Investing Risk-Aware Posted on January 4, 2019 By Matt This is the first in a series of posts about my investing philosophy – Risk-Aware. Risk is the permanent impairment of capital. While risk is often viewed as something that happens to a portfolio, it can also be created through the actions of a portfolio’s manager/owner. Be compensated for Risk There… Read more
Happy New Year Posted on January 2, 2019January 18, 2019 By Matt To kick off the new year, I’m sharing my investing philosophy. Some concepts are simple while others more complex. They are not immutable rules or laws or instructions, just context I use for investing. Whether I’m doing due diligence on a money manager or listening to a pundit talk his… Read more
The Price of Admission Posted on December 28, 2018 By Matt Everything is down this year except cash and municipal bonds. Headlines are dismal. Volatility is rampant. This isn’t some freak event. It’s the price of admission. Taken as a whole, yes it is unusual to have almost every asset class down in a calendar year. What’s not unusual is the… Read more
Investing Scoring Points Posted on November 14, 2018 By Matt In the short-term, the market is like Whose Line Is It Anyway, the show where everything’s made up and the points don’t matter. Yes, the points don’t matter just like the nutrition facts on a Happy Meal. If you’re looking for proof, check out October. More than 80% of S&P… Read more
Investing Investing in Relationships Posted on November 6, 2018 By Matt Investors must believe that investments will continue to rise in value. There is no guarantee this will be the case. It’s a leap of faith. There is a rational reason why stocks should go up in the future – the objective of a business is to make money and that… Read more