Barry Ritholtz Quotes
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Much of the traditional thinking about cash is well intentioned but unrealistic. Should you have six months of living expenses in the bank for emergencies? Sure. Do you? Probably not.
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Mutual fund managers want your money in their funds. They get paid based on assets under management.
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Many hedge fund managers have become billionaires; perhaps this - plus their reputations as the smartest guys in the room - is why they have captured the investing public's imagination.
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It is in your DNA to love a good story. You know, neat tales with heroes and villains and conflicts to resolve. A good story pushes our buttons, is exciting and memorable.
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People who work in specialized fields seem to have their own language. Practitioners develop a shorthand to communicate among themselves. The jargon can almost sound like a foreign language.
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Anyone can make an article longer; the skill is keeping it tight and lean.
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Active management leads to lots of poor investor behavior. It sends people chasing after whoever has the hot hand at the moment.
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You can blow on the dice all you want, but whether they come up 'seven' is still a function of random luck.
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Any investment bought via credit always runs the risk of margin calls and, eventually, liquidation.
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Salesmen always need something to sell.
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Footage of people camped out at Best Buy or elsewhere is not remotely a celebration. Rather, it's a reminder of just how economically distressed a large percentage of our populace is.
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When markets are rallying, cash in the portfolio is a drag on performance, returning about zero.
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Despite all the media coverage, glitz and glam of hedge funds, they have not done well for their investors. They have high - some say excessively high - fees; their short- and long-term performance has been poor.
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If your investing approach requires that you become Nostradamus to succeed, then you are destined to fail.
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If I am going to trash others for their dumb predictions, I must at least hold myself to the same sort of accountability.
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Any time you speak to people about their posture, you learn about their most recent investment activity. When someone just bought stocks, they tend to be bullish; someone who just sold is bearish.
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If you think too-big-to-fail banks are not worthy of investment because of their impossible-to-read balance sheets, well then, don't buy them.
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Indeed, eventually, random outcomes all revert to the mean, meaning that streaks eventually end. Understanding this is a key part of intelligent and rational investing.
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Based on a lifetime of observations and a few decades in the markets, I understand that societies, beliefs and fashions all move in long arcs of time. We call these arcs several things: cycles, periods, eras.
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Owning a variety of asset classes means that some part of your portfolio will be doing well when the cyclical turmoil arises. A broadly diversified portfolio includes large capitalization stocks, small cap, emerging markets, fixed income, real estate and commodities.
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It is important for investors to understand what they do and don't know. Learn to recognize that you cannot possibly know what is going to happen in the future, and any investment plan that is dependent on accurately forecasting where markets will be next year is doomed to failure.
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Getting more and more of our news from the social network is having significant repercussions for markets - and your money.
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Asset managers have different approaches, and I don't wish to suggest there is only one way to run money. There are many ways one can attempt to reduce risk, improve performance, lower drawdowns and reduce volatility.
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If you have read me for any length of time, you know I am less than enthralled with much of what passes for financial news.