Tag: Inflation

A Quick Note Regarding Investments

Our clients’ portfolios gained value in October. Every one of them. The portfolio that gained the least was up 1.1%. The portfolio with the greatest gain was up 6.22%. Note: The calculation used to determine investment returns experienced by our clients is called the internal rate of return. It is cash flow specific and is net of all fees and… Read more →

What would Warren Buffett do?

One hundred eleven billion, four hundred million dollars. $111.4B. $111,400,000,000. This is Warren Buffett’s approximate net worth as of May, 2022 according to Forbes. He is the 5th richest person on planet Earth, sometimes referred to as the “Oracle of Omaha” in recognition of his exemplary success as an investor. Had you invested $10,000 thirty years ago in S&P 500… Read more →

Investor Behavior and a Bit About Inflation

Economists and psychologists have conducted studies to determine whether investors always act rationally. They don’t. A number of persistent patterns of irrational investor behavior have been identified, including overconfidence, hindsight bias, short-term focus, regret, mental accounting and the hot-hand fallacy. We all tend to make these mental mistakes but can avoid them once we become aware. With this writing we… Read more →

Risk Tolerance, Inflation, DARPA & AI.

What is your risk tolerance? During the financial planning process we ask questions about – well, everything that might possibly be useful in understanding our clients as they consider their priorities, concerns, strengths, limitations, etc., etc. Specifically with regard to developing and maintaining a proper investment policy it is useful to assess our client’s risk tolerance. A relatively new idea… Read more →