Investing

Investing is the activity of forecasting the yield over the life of an asset. Using Benjamin Graham’s definition, "an investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative."

Pimco’s Gross Describes a New Age of Risk

Pacific Investment Management Company (Pimco) founder and co-chief investment officer Bill Gross offered a revised view of the global investing landscape in a letter published on the company’s website.

As the manager of the Pimco Total Return Fund, Gross’s 2011 investment decisions were driven in part by the “new normal” thesis.

The new normal view suggests that investors should seek emerging market debt because developed countries will experience a prolonged period of sluggish growth, high unemployment and inflation. ...

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Should You be Less Concerned about Liquidity?

Liquidity or lack thereof tends to be a major concern when it comes to annuities.

Many financial advisors and consumers are reluctant to use annuities because money allocated to...

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Wally Weitz on the Failure of Imagination

Wally Weitz is a hugely successful and yet relatively low profile money manager. His performance over a very long period of time credibly places him among the world’s top performing investors. Like his Omaha neighbor Warren Buffett, Weitz is a deep value investor. His fundamental investing criteria is the price of a security relative to its intrinsic value—the lower the price the better. In the video below, Weitz speaks to Bloomberg about his biggest investment mistake. In a...

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Does Buy and Hold Now Require a Floor?

The Wall Street Journal recently published an interview (see the video below) with entrepreneur and Dallas Mavericks owner Mark Cuban.

The interview is interesting for a number of reasons. Cuban talks about investing his own money and he offers some suggestions for regular, non high net worth investors.

In a nutshell, Cuban strongly believes that the “buy and hold” approach to investing is a worthless strategy.

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Bear Funds Struggle to Keep-up Over Time

Bear Funds or mutual funds that are intended to prosper during down markets have actually performed poorly over the past decade. One would think that the past decade would have provided the perfect environment for these types of investment vehicles. As reported in Bloomberg, though, a Pimco bear market mutual fund run by Bill Gross is the only fund of its type to beat U.S. stocks over the past five years. According the the Bloomberg article: "Bear funds trailed equities over five and 10 years,...

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