Category Archives for "How To Invest"

The Greater Fool Theory

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One of my favorite TV shows in recent years is HBO’s The Newsroom. The guy who writes the show, Aaron Sorkin, is known for fast-paced, snappy dialog. In the final episode of season 1, economics reporter Sloan Sabbith (played by the lovely and talented Olivia Munn) tells her boss, anchorman Will McAvoy (played by Jeff Daniels): […]

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A Little Tough Love for Stock Pickers

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Do you consider yourself a member in good standing of the community of amateur stock pickers? If so, you best be a truly exceptional one because if you’re not, the road ahead of you is going to be unpleasant. Maybe you’ve already learned this, or maybe you’re still in denial. Either way, you’re eventually going […]

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Critical Thinking Skill #3 – The Time Value of Money

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The Time Value of Money is one of the first skills a new investor must learn. Simply put, it answers the question “What is the value to me today, of a dollar that I expect to receive at some point in the future?” This article will walk you through the process of answering that question. […]

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A Sector Rotation Stock Screening Algo That Actually Works

Stock-picking algorithms come in many flavors, most of which appear at first glance to be quite appetizing, but in the end are not very pleasing to the palate. But there is a small subset of these factor-based strategies that do produce gastronomical delight. What follows is a sector rotation stock screening algo that actually works. […]

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Characteristics of highly accomplished investors

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What do Warren Buffett, George Soros, Carl Icahn, Ray Dalio, Abigail Johnson, James Simons, Thomas Peterffy, Ron Perelman, and Steve Cohen all have in common? They are all highly accomplished investors. And they make up 9 out of the 10 richest Americans, according to Forbes, Inc. Introduction The fact that 9 out of the 10 […]

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How to Increase Your Odds of Winning at the Investment Game

How to Increase Your Odds of Winning at the Investment Game Summary Stock market strategy can be understood using game theory. The players in this game have widely different skill sets. Profits flow from low-skilled players to those with better skills. Every investor has a strategy, even if that strategy is “I just go by […]

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Why Factor-Based Investing Works

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Why Factor-Based Investing Works Contrary to what you may have been told by experts, gurus, and sages in the investment industry, individual investors are perfectly capable of constructing portfolios that produce non-trivial amounts of Alpha (excess returns above the market return), in a persistent and systematic way. This is the conclusion reached by several recent […]

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Are You A Secret Market-Timer?

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Here’s something that you might not know. You might be a market-timer, even though you may not be aware of it. Market-timing gets a bad rap in the investment community. Most experts say that it’s nearly impossible to improve your results by jumping into and out of the market. Sure, anyone can get lucky and […]

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ZenInvestor Core Beliefs – Key Investing Concepts

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There are certain concepts and principles that I believe are absolutely critical for successful investing. I call them Beliefs because I’ve learned them from personal experience – first as a securities analyst, then as a professional trader, and finally as a portfolio manager. These are the ideas that I strongly believe will empower you to […]

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5 steps that investors nearing retirement can take now

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A few years ago Morningstar ran an article about some things that people who are near retirement can do to to get ready. I liked it because it was pretty simple and straightforward. Here is the essence of that article, 5 steps that investors nearing retirement can take now. Figure Out How Much Income You […]

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