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

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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

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The Shocking Truth About Indexing

Index investing is wildly popular with Americans: As of year-end 2014, “passive” index funds managed total net assets of $2.1 trillion, according to the Investment Company Institute. As passive investments, index funds are supposed to closely track the performance of a market benchmark such as the S&P 500 index. Fund management has no need to

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Written Plans Help Clear Up Fuzzy Thinking

The boxer Mike Tyson famously said that every fighter has a plan until he gets punched in the face. Tyson was referring to his opponents in the ring, but he might as well have been talking about investors. Too many investors ditch their carefully-laid plans when they get slammed by the market. Impulsively acting out

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It’s Silly Season for Market Predictions

Warren Buffett once said, “The only value of stock forecasters is to make fortune tellers look good.” At this time of year – when media outlets are brimming with forecasts and market predictions for the 12 months ahead – it’s wise to heed Buffett’s advice. Just look at Wall Street’s dismal record in divining the

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Putting China in Perspective

If you follow the financial news, you know that China’s stock market is in the midst of a sharp slide. The benchmark Shanghai Stock Exchange Composite Index has fallen more than 23% in the nine weeks since June 12th of this year, closing down more than 30% some five weeks ago on July 8th. What’s

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Greece, and Why Headlines Are Your Enemy

The “Greek drama” is over – or at least at an intermission. But for investors, the dire headlines generated by the country’s financial crisis provided a stiff test of self-discipline. First, a recap: Earlier this week, Greece and its Eurozone creditors tentatively agreed on a last-minute bailout package that could stave off economic collapse in

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Dividend Growth Stocks: Boosting Income for Retirement

Retirees need confidence that their investment portfolios will provide a steady, sustainable stream of income, one that will rise to keep pace with inflation. High quality dividend growth stocks have fulfilled that need for decades. The income from dividend growth stocks has the potential to continually rise from original dividend amounts over time as dividends

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Minimizing Two Key Retirement Risks

Warren Buffett has attributed much of his well-known investment success to two rules. Rule #1: Never lose money. Rule #2: Never forget Rule #1. What the Oracle of Omaha is reminding us, in a humorous way, is to keep our eye on the return of our capital, even more so than the return on our

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To Succeed in Investing, You Must Manage Risk

To live life more fully, we all must accept, and even embrace risk. The most fulfilling parts of our lives are full of risk, but generally worth pursuing. Our adventures, and even our responsibilities are risky, but both can be very rewarding as long as we aren’t reckless. Even flying our family to a vacation

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