Honey, I’m home: Inflation makes its comeback

If you’ve been to a gas pump lately or paid your heating bill, you have a pretty good sense that energy costs more today than it did a year ago. A trip to the grocery story will add to your growing ...

It’s time to make peace with capital gains tax

The average investor hates paying taxes—who doesn’t? And yet, long-term investors get some great tax breaks on both their profits and losses. The tax breaks make investing a better after-tax proposition ...

Familiarity does not breed investing knowledge

Shortly after Hurricane Katrina devastated New Orleans, insurers reported higher interest from clients in other parts of the country in homeowner’s coverage for catastrophes like floods and earthquakes. ...

Profit by losing your control attitude

Perhaps the hardest thing to do on the way to becoming a successful investor is unlearning everything you think you know about financial markets and the economy. The difficulty lies in admitting you do ...

Client Letter – Q3 2005

One of the first rules of financial success is to protect what you have so that a disaster won’t set you back too far. That means investors who are trying to increase their wealth should protect their ...

Investment pro to individuals: Index or lose

David Swenson is an investment success story. As overseer of Yale University’s endowment fund for the last 20 years, he has helped it grow to $15 billion by beating the stock market with annualized ...

Why gamblers and investors make mistakes

How many times have you assumed that what’s happened in the past will continue in the future? For instance, if your trash collector has been showing up early every morning, it seems a pretty good ...

Why you cannot switch to bonds after retirement

A common misconception among investors is that an investment portfolio in retirement should be “conservative” because a retiree cannot afford to “lose” money. Unfortunately, investors ...

How ‘anchoring’ obscures investment values

Our minds work in funny ways, and one of the most fascinating traits involves our tendency to hang our decisions on irrelevant information. Behavioral psychologists call this tendency “anchoring.” ...

How ‘confirmation bias’ clouds your judgment

First impressions count, but, unfortunately for many investors, they may count too much. The human tendency to rely on first impressions and stick with them despite later evidence to the contrary has been ...