TED Talks

As human beings, I think we’re naturally more inclined to be active than inactive.  Our minds are constantly turning with thoughts and ideas.  If you’ve never tried meditation, I would encourage it just to experience how difficult it is to keep your mind from drifting.

A budget bill has passed both houses of Congress and is on its way to the president’s desk to be signed into law.  The bill contains changes that will impact future Social Security recipients.  

With US stocks off over 10% (as measured by the S&P500[1]) from their all-time highs reached in May, perhaps you’re wondering how the big-dogs are doing.  You may be surprised.   

After a remarkable run, the stock market has finally experienced some negative volatility. The last time we experienced anything like the past few weeks was in 2011. As you may recall, late that summer, one of the big ratings agencies downgraded the credit of the United States as politicians in Washington wrangled over raising the nation’s borrowing limit.

On May 2nd we were in Omaha with several clients attending the Berkshire Hathaway annual shareholders meeting.  The meeting marked a significant milestone.  Over fifty years have passed since Warren Buffett took control of Berkshire Hathaway, then a struggling New England textile company.  

I say this quite often, and I’ll say it here again, reading about politics is a sure way to make one cynical.  It does for me at least.  However, reading about some of the amazing research occurring at our universities and new treatments being developed by businesses gives me great optimism.     

As the western world ages, concern is growing that we are in the early stages of an epidemic.  According to the World Health Organization, over 35 million people worldwide have Alzheimer’s disease.  Those numbers are expected to triple by 2050. 

Measuring performance in the investment business is absolutely necessary.  But far too often, evaluating performance itself causes investors to make wealth destroying decisions.  This is a phenomenon I’ve witnessed throughout my career.    

Things change quickly – and more drastically than many think…

There was a good article in The Wall Street Journal on December 5, 2014 titled “16 Rules for Investors to Live By.”  One of the rules in particular struck a chord with me.  Rule 6 said:

Things change quickly—and more drastically than many think…

One of the lessons I’ve learned over the years is that a critical part of my job is setting expectations. Since late 2012, US stocks have really marched steadily upward with no major pull-backs. This type of market environment tends to create a false sense of security.