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…

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…

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…

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…

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…

Buy Good Businesses and Own Them a Long Time

At Intelligent Capitalworks, we believe that the key to investment success is being a discriminating buyer ‒ and a patient owner. We didn’t invent this bit of wisdom ‒ it’s been applied by many successful investors, including Warren Buffet. The good news is, the approach that works for Warren (and countless non-famous investors) can be…