I will understand my own circumstances and formulate an investment plan based on my needs, not in anticipation of market trends. • I will remind myself that investing is not a form of entertainment—if I have an urge to gamble, I will go to Las Vegas (where at least the drinks are free!) and leave […]

Individual investors face a variety of hurdles, but for many, especially those getting started, the greatest challenge is often sorting through the hodgepodge of entities offering investment related services. Even to categorize the various service providers is a daunting task. The choices can be bewildering; brokers, investment advisors, insurance agents, trust departments, financial planners and

“Do not try to beat the markets by speculating on commodities or high-tech stocks…When the siren song starts to waft toward you, lash yourself to the mast of broad-market investing.” —Ben Stein, “Everybody’s Business,” New York Times, Feb. 27, 2005 The message never really changes, does it? Establish a plan. Stick with it. Be a

In early 1995, the dollar was plunging against most major currencies and the financial media was piling on. We are struck by the similarity between recent headlines and those of a decade ago: The “mainstream media” was dead wrong. The chart below shows what happened after the dollar bottomed out in April 1995. The trade-weighted

Much has been made of nefarious practices carried out by several mutual fund companies that have been brought to light largely as a result of ambitious regulatory efforts conducted by New York State’s Attorney General. Indeed, that office has scored a number of “triumphs,” sure to be trumpeted for political gain. In our view, the

Tech stocks are no longer the subject of polite conversation. To some, stocks and bonds in general are passé. The hot topic today is real estate, residential that is. Over the past decade many home buyers who plunked down a modest down payment, seeking only a place of residence, have watched as their equity has

This month we assess so-called “socially responsible investing” (see article within), one of the fastest-growing sectors of the money-management industry. As our research unfolded, we came across a unique fund family that takes the opposite approach. Though we do not recommend it for serious investors, the fund drives home the point that the fund industry

Investors who follow our High-Yield Dow model have been steadily accumulating Merck since last October, shortly after news broke that the firm could face enormous lawsuits related to its blockbuster drug Vioxx. Most recently a Texas jury delivered a $253 million verdict against the firm. Texas law limiting punitive damages will reduce the award substantially

“You make more money selling advice than following it. It’s one of the things we count on in the magazine business—along with the short memory of our readers.” —Steve Forbes, Forbes Magazine, The Anderson School, University of California at Los Angeles, April 19, 2003. We appreciate Mr. Forbes’ candor. He is correct; it is easy

The answer is D. Who’d a thunk? The sage of Omaha, that venerable value investor, the patron saint of stock pickers, Warren Buffett, is a devotee of index-fund investing. The basic precepts of passive investing are being increasingly adopted, if more subtly, by the investing community. For example, Both Lipper and Morningstar, the biggest names