Knowledge + care + discipline bring you peace of mind
Click the links below to read more—and please let us know what you think.
A View of the Cascades
Writers on behavioral finance (including us) have a tendency to portray investors and speculators as a seething mass of irrationality and emotion.
A Newtonian Smorgasbord and The Dangers of Science
Every time you mix particular chemicals together, the solution turns blue. This constancy in the natural sciences appeals to a human sense of order, so we seek, and even expect, similar tidiness in non-scientific areas.
War and Peace
Since the Enlightenment, mankind seems predisposed to believe that history is a march of progress; we learn from our rare mistakes and move forward.
At one point the late 1960s, every arrest on television suddenly involved the police officer pulling out a card and reading the suspect his legal rights.
A Curious Lack of Interest in Cash
Our last newsletter contrasted the day-to-day obsession with price fluctuations typical of stock investors with the focus of private business owners on the stream of cash they derive from their business; the analogous benefit to stockholders is the dividends they receive from their shares.
To See or Not to See
That is the question. Imagine you own all or part of a private business — your primary day-to-day concerns will be the operations, earnings power and prospects of that business.
In February 2009, near the depths of the financial crisis, our newsletter (archived on our website) cited the Inferno from Dante’s Divine Comedy as an approximation of what many thought of the markets.