The Costanza Investment Strategy

Seinfeld fans love the irrationality and craziness of George Costanza; many of us can relate to some of his antics. While he may be crazy, he has given investors some great advice on how to be better investors. He didn’t give any explicit advice, but he taught us about human behavior, and how our responses can help or hurt us as investors.

Time - Friend or Foe?

Time is something we have very little control over, and yet complete control over. We cannot extend time nor can we shorten it. Yet, we have complete control over the consequences of its use. How we employ time can be a significant contributor whether we are happy or miserable.

Strengthening Your Investment Conviction

One of the biggest detractors to investor performance is a lack of conviction. We may have an investment strategy, and may even feel strongly towards it. But is that conviction circumstantial, or is it based on sound principles?

Skill, Luck & Outcomes

Most outcomes in life are a culmination of both skill and luck (or bad luck).  How much an outcome is influenced by skill versus luck differs among activities. Basketball is dominated by skill…typically you see the best teams win. Roulette is dominated by luck.  What about investing?

Investing - Simple Yet Difficult

Warren Buffett said, “Investing is simple, but not easy.”  Sounds like a contradiction. But in real life simplicity has little to do with ease. Take losing weight. Very simple.  Burn more calories than you take in. Easy, right?  

Cultivating a 'Firmness of Character'

Benjamin Graham said what investors need, but few have, is a “firmness of character.” What he was referring to is the ability for investors to keep their emotions in check.
Investing success is more influenced by DQ than IQ. Our Discipline Quotient, or ability remain disciplined during emotional times, is what sets investors apart. Exercising investment discipline is a difficult endeavor, but it’s not impossible.

A Reliable Forecast for 2018

Before I get into my market forecast for 2018, I want you to consider why forecasts are so alluring to investors like ourselves. What is the force that influences us to make decisions based on forecasts? There is ample evidence that expert forecasts are correct only half of the time, yet we are still attracted to them. Why?

Filter Failure

We are inundated with information and data these days – most of which serve to distract us from more important things, yet they are effective nonetheless. And for some reason our brain really likes distractions.

Power of Headlines

Headlines exist for one reason – to get you to read, click or tune in. The real purpose of headlines is not to inform, it is to get you hooked.

Our brains love headlines! We don’t have a lot of time, and we are constantly being persuaded to look this way or click over here. The brain often lends attention to those things we can learn in two seconds without using any brainpower. Headlines provide that material.

The Value of Cash

As investors, we have great difficulty valuing cash correctly. We take shortcuts and seldom analyze things from more than one point of view. Understanding the value of cash, from different angles, can help you make better decisions with your money.

What’s The Yield?