Dividend Reinvestment is a Compounding Accelerator

Dividend Reinvestment is a Compounding Accelerator In last month’s commentary discussing the strengths of dividend growth stocks, we made the case that they should play a key part in a retirement income strategy. Of great importance, we note that dividend reinvestment is a compounding accelerator in this month’s commentary. Is dividend reinvesting compounding? The fact

Continue Reading

Investing in High-Quality Companies

Investing in High-Quality Companies At Intelligent Capitalworks, we believe that the key to long-term investment success is being a discriminating buyer and a patient owner of great businesses ‒ in other words, investing in high-quality companies at a fair price and owning them a long time. We didn’t invent this bit of wisdom ‒ it’s

Continue Reading

The Value of the Long View

When building wealth for the long term, your goal should be long-term investing ‒ time in the market versus timing the market. This view represents the difference between being a long-term owner and a short-term renter (of stocks). If you can only take one investing axiom to heart, this might be the one. Moving in

Continue Reading

Investing Lessons from the Pension World

Investing lessons from the pension world help us to focus on the critical importance of matching our long-term retirement liabilities with proper long-term investment assets. Asset/liability matching originated in the pension world.  Pension managers are responsible for meeting specific objectives, namely, paying specific amounts of retirement benefits to a specific number of individuals at specific

Continue Reading

Behavioral Mistakes are Punishing

Much has been written about investment behavioral mistakes and whether financial advisors can help clients generate market-beating investment outperformance. Amid all of the activity that investors and their advisors pursue in hopeful expectations of outperforming the market, it’s easy to overlook the risk that those activities might create below-market returns. Underperformance can easily come from

Continue Reading

Quantifying an Advisor’s Value

The DIY trend has prompted more than a few people to ask exactly what value human financial advisors provide in exchange for their fees.  It’s a good question.  And thanks to the work of investment researcher Morningstar Inc., part of the answer is clearer to see. Morningstar looked into the question in 2012 and found

Continue Reading