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
This is particularly disturbing when you see teen and young professional unemployment in the 25% unemployed range.
The European economies have some real trouble now and in the future. What is interesting is that many of their stock markets are positive for the year.
This goes back to my statement in a previous newsletter that the stock market of a country does not necessary move in step with the economy.
There’s a perception China owns all of the Treasury Bonds, but they actually own less than 10%. The biggest single owner of US Federal Debt is the Federal Reserve Bank.
The above graph shows foreign holders of our debt.
I think highly of Mark Mobius, and he makes a strong argument that emerging markets, while they’ve had some correction this year, is still a great place to invest.
I happen to agree with him.
It’s a great article, so be sure to click and read.
Here’s a good paper that studies returns going back to 1920 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.
