I tell people to design their ideal life. What do you want to do? What do you want to be? ... Sit down, add up your expenses, write out your life. |
I think, really, when you look at the stocks that are splitting, it's almost a case of doing well on price performance, |
If you have a 401(k) at work and you don't use it, it's like literally walking by buckets of money every day, |
In terms of thinking about market valuations, think, do I care? My goals are 10, 20 years from now, not now. If you have shorter-term goals, you should be aware that market valuations fluctuate wildly. |
Momentum as a selection criteria works very well. My data suggests that you don't want to focus on laggards, even after they've turned the corner, |
Personal funds are what mutual funds would be if they were designed today. It's simply a better mousetrap in almost every meaningful way. |
Price momentum comes at a tremendous cost in volatility. It's a wild roller coaster ride. Make sure you don't have lunch before doing price momentum alone. Use momentum where you can get low price-to-sales, low price-to-earnings ratios. Don't use it alone, |
The model never varies. It never has an ego problem; it never has a fight with its spouse; it never wants to prove that it's right. The model is never hung-over after a night of partying -- it just does the same thing, time and time again. Very boring, very profitable. |
The problem in the stock market it not that it's unknowable, and not that it's too complicated. The problem in the stock market is that we don't let our good ideas work. We're always getting in the way of our better ideas, |
Think back to 1994, 1995, read any publication from that time, and everyone thought we were going to have a bear market. The person who waited for the 500 point correction on the Dow missed 5,000 points. You don't want that to happen to you. |
Tip number one is you have to start saving immediately, |
You have to pay yourself first, ... You can't let other things get in the way. |