There is a story from WWII about the Army doing an analysis of damaged planes to find out how to better protect them by determining which areas of the plane were most vulnerable.  This analysis showed that the wings and tail were hot spots for receiving damage from enemy fire.  Based on this information, it…

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We spend a lot of time as investors trying to understand and mitigate risk.  Sometimes this can seem difficult as prices can move up and down drastically for seemingly no reason.  However, in studying the history of the stock market, we take for granted a lot of the risk that we no longer have to…

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Before the election, I wrote a post talking about how the market didn’t react in predictable ways to the election of a president.  Despite all of the evidence, many investors and experts alike predicted a crash if Biden was elected.  The theory was that his policies of wanting to raise taxes and make it harder for…

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In the course of about a year, we’ve gone from fears of the next great depression, to rumblings of asset class bubbles all around us.  So what is an investor to think?  Are we in a bubble?  To properly answer that, we need to look at where prices are, what’s fueled the rise, and what…

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“If you torture the data long enough, it will confess to anything” – British Economist Ronald H. Coase In investing above maybe any other discipline, if you know where to look, you can find data on almost anything.  In general, this is a great thing; it allows us to be extremely informed on many fronts…

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It’s not very often that a story about a hedge fund making a small bet against a thinly traded stock would become the biggest news story in the world, but we live in a new world where Reddit, Robinhood and Gamestop have dominated the news cycles over the last week.  So what in the heck…

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So far in 2020, and really for the past few years, investing has seemed pretty easy.  Invest in the big, well-known companies that everyone has heard of and uses, and you outperform the rest of the market and probably most professional investors.  Historically, investors have realized a premium in terms of risk-adjusted outperformance by investing…

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Generally this phrase is used in relation to the value of real estate, but it can have important implications for regular investment accounts as well.  Understanding how to efficiently utilize asset location strategies is the one freebie we have in investing.  What I mean by this is that is that investors can increase their wealth…

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Understanding risk and knowing how to best control or mitigate it is probably the most important factor in creating and maintaining a successful investment plan.  It’s also one of the most misunderstood and ignored factors.    In most conversations I have had with investors related to risk, the concern is primarily related to a substantial…

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A donor advised fund (DAF) is an investment account in which you make an irrevocable gift and receive a charitable deduction. Once the donor advised fund is funded, distributions can be made over many years to charitable organizations. With recent changes to the tax laws fewer taxpayers are itemizing their deductions and instead receiving the…

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