Salient to Investors: Tim McAleenan Jr. writes: It is rarely advisable to follow the investment decisions of others because they have different opportunity cost calculations than you, and may understand a company in a way that you do not. Buffett recently stated that he makes the decisions in any Berkshire
READ MORE... →Salient to Investors: Tim McAleenan Jr. writes: The Pareto Principle, also called the 80/20 Rule, states that 80% of the results come from 20% of the actors. Melanie Pinola at Lifehacker says 90% of Warren Buffett’s success at Berkshire Hathaway can be attributed to less than a dozen decisions. This
READ MORE... →Salient to Investors: The two key steps toward becoming a knowledgeable, successful investor: Make use of the power of compound interest by investing as early as possible. Base your investment decisions on an intentional asset allocation plan that’s tailored to your age and risk tolerance. Read the full article at http://www.wisebread.com/2-investing-concepts-everyone-should-know
READ MORE... →Salient to Investors: Never put too much of your portfolio in a few investments, or in one country or industry. The employee with a significant chunk of his 401(k) in his employer’s stock, or gets his contribution matched in company stock, risks both job and retirement plans if a setback for
READ MORE... →Salient to Investors: Jon Stein at Betterment writes: Everybody should watch the PBS Frontline report, The Retirement Gamble. Educate yourself Choose low cost investments… every time. Morningstar found that low-cost funds outperformed high-cost funds in every single time period and data point tested. A 2 percent difference in fees can
READ MORE... →Salient to Investors: Mark Hulbert writes: The small number of advisers who outperform the market rarely keep doing so, so choosing a recent market beater does not increase your odds of future success. Of the 51 advisers out of more than 200 tracked who beat the Wilshire 5000 Total Market
READ MORE... →Salient to Investors: Matt Schreiber at WBI Investments says limiting losses is critical to keeping with your investment plan. Morningstar says 40 of the 2,600 non-sector stock mutual funds it tracks have lost money in the 12 months through April 2013. Zheng Sun and Lu Zheng at University of California,
READ MORE... →Salient to Investors: Hedge funds using debt-trading strategies are expanding at a record pace as they profit from risks big banks are no longer taking. Roy Smith at NYU said regulators in the US and Europe want to transfer risk to the shadow-banking system and interferes capabilities of the large banks
READ MORE... →Salient to Investors: More investors are pursuing a modified DIY approach, using increasingly sophisticated online tools and a-la-carte advice services offered by financial firms. Surveys suggest between one-third and two-thirds of boomers manage their own investments. Ed Tracy at Deloitte Consulting said many investors were massively disillusioned by the perceived
READ MORE... →Salient to Investors: Mark Hulbert writes: The Utility Forecaster, whose editor is leaving, ranks first among 108 monitored services for risk-adjusted performance over the last 10 years, second out of 70 monitored services over the last 15 years, with above-average performance in both up and down markets over the last
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