Thoughts From the Frontline, August 2004

The Rewards of Lazy Investing

August 27, 2004

Is being lazy the secret key to riches? Can you grow your portfolio 2,000 percent with just one decisions? Did I spend 432 pages and 200 footnotes [in Bull's Eye Investing] trying to give readers the tools they need to be thoughtful, successful investors when just one page with no troublesome research would open up to them the secret of the ages? With all my study, how could I miss such wisdom?

Today we explore the problem with "single derivative" thinking. It is in my experience perhaps the...

Why Investors Fail

August 20, 2004

This week we look at how to make you a top 20% investor, think about some of the mistakes we all make and much more. I am writing today in Florida and will finish up in Texas tonight before taking off for Philadelphia. Because of the time constraint on my usual research, I am going to borrow a few pages from Bull's Eye Investing and some letters written last year and add a few thoughts. I think this letter contains some very important points that are worth repeating. If you would like more on...

$450 Billion Pension Fund Shortfall

August 13, 2004

This week we start out with the weather and end up buried in the footnotes of the Pension Benefits Guaranty Corporation as we wonder about expected future returns from the stock market. It is a wide-ranging foray, and I hope an interesting one, as we look at what some see as an impending crisis (which is not all that big, as world ending crises go) and stumble upon the real object where our concern should be focused - our retirement portfolios.

Getting an "A" in College

But first, I...

A Lean, Mean Reversion Machine

August 6, 2004

This week we look at a thoughtful analysis by one of my long time favorite analysts, Jeremy Grantham, on what stock market returns should be over the next seven years, comment on the employment numbers and a softening economy and explore what that could mean to our investment portfolios. If we have enough space I will add a few thoughts on the Fed meeting next week.

But first, I would like to thank the people responsible for the enthusiastic and very kind reviews at for Bull's Eye...