The News Review:
- A Doozy of a Week
- Bruce Greenwald on Value Investing
- Frugality the basic plot for author’s investing
- Schwab Offers Six Tips For 401(k) Investing in Today’s Volatile Market
A Doozy of a Week
Kansas City Star, MO
In fact, the greater the market volatility, the more that dollar cost averaging and rebalancing make sense. But if market volatility is bothering you so much, it may be time to listen to your gut and ratchet down your risk level. Dollar cost averaging means investing the same amount of money at regular intervals (for example, $100 or $200 every month or $500 every quarter into a stock fund) no matter what the stock market is doing. This way, you will buy more shares when prices are down and fewer when prices are up. Dollar cost averaging won?t keep you from losing money if the market keeps going down. But the more shares you buy at lower prices, the greater your profit will be if and when the share price goes back up (historically, the stock market has gone up over time). Rebalancing means periodically returning your portfolio to the intended mix of assets.
Bruce Greenwald on Value Investing
U.S. News & World Report, DC
You always want to make sure it’s protected either by assets or the kind of moat that Buffet talks about. Otherwise, even if it’s been making lots of money, it’s a business that will be competitively vulnerable. Does the weak credit environment change the value investing proposition?The first thing is that for value investors, you are not going to try to forecast the future. Most value investors would say if it’s anything like credit crunches we’ve seen in the past, it will be gone in a year. That’s what the betting has to be. It’s a short-term problem and not something you focus on. It has, however created opportunities in debt markets.
Frugality the basic plot for author’s investing
Globe and Mail, Canada
" A former public affairs manager at Toronto’s Pearson International Airport, he became semi-retired in 1988, used his severance package to set up a home-based business and "vowed never to work full-time again. " He is the author of four books, including Are You Ready for Semi-Retirement? A Boomer’s Guide to Success, Freedom and Adventure. Print Edition – Section Front.
Schwab Offers Six Tips For 401(k) Investing in Today’s Volatile Market
MarketWatch
Even
those of us who love work and can’t imagine doing anything else will
come to a point where we can’t work any longer. We need to be pay for our lifestyles during our retirement years
somehow, and I believe Social Security is simply not going to cut it for
most of us. That means we need a backstop, and that backstop is our own
savings and investing. Let’s take a look at a hypothetical example of the importance of regular
saving and investing. Consider a 25-year-old in 1973 who got a job
making $21,000 per year and saved 10% per year. This particular
individual received a 3% cost of living increase every year, and a 10%
promotional increase once every five years. The savings were invested in
a diversified portfolio of stocks.
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