Today marks four years that I have co-owned a house with my younger brother, Casey. There’s a constant debate on Finance Twitter about owning vs renting and whether a house in an “investment”. I will say that while our house is not a traditional investment, it is an investment in other ways. It was an investment in our maturation as adults. It was an investment in our overall level of happiness and pride. It was in our future.
Sometimes there’s more than just the numbers involved when considering “investment” opportunities.
Here’s what I’ve been reading this morning:
‘Bearish Billionaires’ – Michael Batnick – The Irrelevant Investor
- During the recovery earlier this year, a handful of billionaire hedge fund managers went on TV expressing bearish sentiments about the market. The opposite happened. Michael uses this a good reminder of the futility of trying to predict the direction of the stock market.
‘Margin of Safety’ – Richard Connor – Humble Dollar
- There are ways to “stress test” your portfolio to see how it might hold up in future market environments. As Richard writes, that presents the problem of assuming the future will resemble the past. He writes about why and how he builds in a margin of safety as well.
‘What is the Attraction of Star Fund Managers?’ – Joe Wiggins – Behavioural Investment
- Whether it’s an individual effort by an athlete like Tiger Woods or Roger Federer, or a brilliant new CEO, society tends to root for individuals or groups/teams for long periods of time. This post looks at why the “star” fund manager became so popular.
‘Be Prepared for Short Term Volatility’ – Mullooly Asset Show
- The 2020 Presidential election is less than a week away. The stock market is going to be volatile. That’s just the way it is. This week’s video reminds investors that a short-term spot of volatility (potentially through the end of the year) is NOT reason to rip up the long-term game plan.