In May 2007, John Bogle gave the commencement address at Georgetown University. He flagged it off by recalling a story, one that is fairly popular by now. At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, the author Joseph Heller, that their host, a hedge fund manager, had made more money […]
Understanding the behaviour gap in investing A gap exists between the rate of return an investment would earn in a fixed period, and the return an investor in reality earns from that very investment. The latter, more often than not, being much less as investors move their money around in an emotional response to […]
‘We learn from history that we don’t learn from history’ – Desmond Tutu It is a tendency of most, if not all, that bends us on doing investment mistakes repeatedly. Our own ego is one that pins us down saying “how can you go wrong? It is not possible, because you are the smartest guy […]
Billionaire investor and author Howard Marks co-founded Oaktree Capital Management, which is one of the world’s biggest distressed-debt firms. A renowned contrarian, his insightful assessment of market opportunity and risk are well known in the investing world. Here are a few pointers from his time-tested, fundamental philosophy. 1. Grasp the essence of contrarianism. When others […]
Ascertaining your individual financial situation and goals is the first task in constructing a portfolio. Important items to consider are age and how much time you have to grow your investments, as well as amount of capital to invest and future income needs. While constructing a portfolio, asset allocation mix (i.e. the mix of various […]