In August 1979, Warren Buffett wrote an article for Forbes attacking the herd instinct of investors. The late 1970s were tough for the American economy, and the stock market reacted harshly. Buffett wrote, “…the future is never clear; you pay a very high price in the stock market for a cheery consensus. Uncertainty actually, is […]
Friend-of-the-blog Anthony is a personal friend who read my very first articles when I shared them on Facebook. He’s seen The Best Interest grow over time. A couple of years ago, I told him that The Best Interest wasn’t what I wanted it to be. I felt directionless at the time, and was considering hanging up […]
One of Charlie Munger’s famous speeches is “How to Live a Life of Misery.” Rather than tell graduates how to live happily, he delivered the opposite message. Because if you avoid life’s surefire miseries, what’s left but happiness? Right!? Munger was famous for quoting famous mathematician Carl Gustav Jacobi (as in, “Jacobians” in vector calculus) […]
I’m drafting this on August 5, 2024. The S&P 500 is down about 8.5% over the past three weeks. Headlines are screaming at us. CNBC is throwing a fit. Our bowling partner just posted an apocalyptic warning on Facebook – stick to bowling, Frank! But the seasoned long-term investors remain cool as a cucumber. Or, […]
Caleb writes in this week with a SPICY question. The answer surprised me. It might surprise you too. Jesse – I work for a small company that does not currently offer a 401(k) match. Do the numbers still suggest I should utilize it? Caleb What Are We Comparing? We need a point of comparison. If […]
You need to understand your willingness, need, and ability to take portfolio risks. It’s an idea that straddles the line between personal preference and objective truth. Let’s break down each of the three constituents, then put it all together with an example. Need Your need to take risks relates to the amount of objective investment […]
Friend of the blog Matt sent in a great question this week: Hi Jesse – do you have any recommendations when it comes to life insurance? I know Term is the way to go, but that’s about all I got… I scanned your blog posts and didn’t see anything too specific with it but if […]
If you told and asked the average American, “The former President and current presidential candidate was shot in the ear on Saturday in an attempt on his life. What will the stock market do on Monday?“ Doug Mills, The New York Times I doubt many people would answer, “Ehhh – basically nothing. The market won’t care.” […]
It’s breakfast time, you’re hungry, and I’m offering you two options: A healthy, adult hen Two dozen eggs Your first thought is probably: “Seriously? It’s just breakfast. I don’t want a live chicken running around my house.” Forget that thought for now. If you’re like me, your mind next asks, “If I do choose the […]
Imagine you’re a gardener. You spend a weekend building a few raised beds, planting sunflowers and corn, etc. It’s a nice little hobby. Your first summer gardening ends up successful and fulfilling. You come back for Year 2 with vigor! You want to expand. You spend a month preparing your beds and double the size […]
