Warren Buffet and Charlie Munger Give Advice

 

Two of the richest men in the world, and the brains behind Berkshire Hathaway.

I’m a big believer in behavioral finance, and that our behavior many times is the deciding factor whether we’re successful or not.

I like this quote from Warren Buffet

Temperament is more important than IQ. You need reasonable intelligence, but you absolutely have to have the right temperament. Otherwise, something will snap you.

Click on the above video, and click on the below link for the full article

Buffet and Munger Advice – Full Article

 

Betting Against the Crowd

Betting Against the Crowd

Here’s a good paper that studies returns going back to 19roll the dice20 to see how buying a country, company, or industry that has had a decline of 60% or more does for the next 3 years.

Basically it’s saying there’s validity to Warren Buffet’s phrase “be greedy when others are fearful and fearful when others are greedy.”

Of course, there were notable exceptions to the rule, but an interesting article and study nonetheless.

Betting Against the Crowd

 

Rail Traffic Continues to Soften

Rail Traffic Continues to Soften

Rail traffic chart

One of the mostly closely watched barometers for Warren Buffett is the level of rail traffic.

 He believes that it’s a leading indication of how much productivity is going to happen in the future as goods are transferred across the U.S.

 It’s currently still in traditional “expansion” territory, but it’s been weakening over the past year or so.

 In my opinion, it’s reflecting the ho-hum economy we’ve all been experiencing. I’ll continue to watch it closely, as one of the variables to what may be in our economic future.

Full Article

 

5 Worst Market Calls for 2011

5 Worst Market Calls for 2011

Even the best can make bad calls.

Warren Buffett buying Bank of America? Woops.

Bill Gross betting against Treasuries? Yikes.

John Corzine? John Paulson? Both very wrong in their market calls.

You’ve heard me over past 3 years talk about humility and diversification. My 21 years in the business has taught me that the investment, sector, stock, etc. that I absolutely love is still the one I need to calmly and rationally buy in an amount that I’m willing to be really wrong in and cut my losses quickly if necessary.

Even the best can make bad calls.

Click for Full Article

Housing is in a Depression

Housing is in a Depression

While I’ve mentioned in the previous blog that the economy is not quite as bad as everyone is led to believe (still not rosy though), one area that has been particular hurt is residential housing.

If you’ve been following my blogs you know I’ve been saying this for quite some time.

Here’s a good article where Warren Buffett says exactly that.

I knew I liked that guy.

CLICK FOR BUFFETT: HOUSING IS IN A DEPRESSION