Blog Archive

The Problem With Investing in 'Stories'

We all love a good story, and Wall Street tells stories better than anyone. Tesla is the future of transportation! Amazon is redefining the world of retail! Who cares that it isn’t profitable! The bond market will do great, no matter what happens with interest rates! Over and over again, it’s the same old thing....

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What’s Next for Stocks in 2017? Private equity knows

A significant portion of my time every day is spent reading. I read company reports, academic studies, several newspapers and even industry journals to try and keep on top of what’s going on in markets and the world. This year I find that I am doing a lot of listening as well as podcasts are...

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Stories Are Nice. Numbers Are Better

The other day a friend sent me a research report suggesting a stock that had excellent growth potential. Best of all, the stock was trading at just 15 times earnings, so this seemed like a fair price to the author. It probably is a fair price, but there was one sticking point: A “fair price”...

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Investing Lessons From the Wicked Witch

Stories of the great investors can be inspiring, exciting and informative, and anytime you get a group of traders and investors together tales of the great ones often get told. There are stories about Jesse Livermore, Paul Tudor Jones, George Soros, Richard Dennis, Bernard Baruch and other legends of the Street who amassed incredible fortunes...

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Invest Like a Pony Gambler

We are just finishing up the Triple Crown season, and as always, I played along at home trying to pick some winners. I had the Derby winner, but that was pretty much the only bet I liked in the three races this year so we can put 2017 in the win column. I do not...

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Zell’s Guide to Investing (Or How I Learned to Love the Downside)

Sam Zell, the billionaire real estate investor, wrote a book, and I’m pretty excited about it. Perhaps not “The Orioles Win the World Series” excited, but at least on the level of “I just found out John Prine is playing my favorite local bar tonight” excited. Zell is one of my investing heroes and one...

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Want to be like Warren Buffett? Choose Yourself

Everybody wants to be Warren Buffett. I talk to would-be-Warrens all the time and see two or three ads a day advising me how to invest like Warren and what stocks Warren might buy today. While that is a grand idea and I have stolen lots of ideas about investing from Warren and even more...

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Warren Buffett, The Kentucky Derby, and How to Make Money Today

Each year thousands of value investors and Warren Buffett disciples flock to Omaha, Nebraska for the Berkshire Hathaway meeting to sit at the figurative feet of one of the greatest investors of all time. I have learned much from Buffett, and I think even more from Co-Chairman Charlie Munger over the years, but I have...

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How to Invest Like a Private Equity Firm

We all see the same ads and get the same emails. Invest like this guy. Trade like this legendary trader. Buy what this big mutual fund manager is buying. While some of that can be useful, and I do track what the famous hedge fund managers are buying, there is a class of investors that...

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The Only Sure-Fire Way To Make Money in the Stock Market

I am often asked if you can make big money in the stock market. The truth is that yes, you can, but not from some super double top secret trading system that doubles your money each and every week, as so many of the sales pitches I see would have you believe. Making a lot...

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The Earnings Season Hype is Overblown

I moved to Florida five years ago because I was tired of two things: Taxes and weather. I hear some folks talk about how much they love winter and I can only suppose that these folks do not have to drive in snow and ice, shovel their driveways, walk their dog in freezing temperatures or...

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About The Time I Started The Best Hedge Fund Ever

First I want to tell you a story about an investment strategy that works great, if you do it right. But, when I tried it, I screwed it up. This has nothing to do with the investment strategy that I’ll be talking about on June 8 in the webinar with everyone. That one I know...

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