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
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.
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.
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.
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.
