Four Investing Lessons from Intel’s Andy Grove

One of the striking things about Grove is that his approach reflected the messy nature of running a business in the real world. Rather than taking a dry, academic approach, he had a hard-fought perspective earned in the trenches of building and running one of the most important companies in the modern world. This perspective is quite valuable for both investors and business leaders.

So, here are four investing lessons from his life, all of which are quotations are from Grove himself. Continue reading

Negative interest rates require flexibility in fixed income | BlackRock Blog

The main takeaways here: With yields at historic lows, and in certain cases at negative levels, it’s difficult today to generate even a 3 percent yield without putting principal at risk, and where there’s actual yield is a very small part of the fixed income universe.

Source: Negative interest rates require flexibility in fixed income | BlackRock Blog

The S&P 500 is the World’s Largest Momentum Strategy

From 1989-2015 the S&P 500 was up almost 1200% in total. The majority of that gain came from a small number of stocks while the rest were more or less worthless.

Source: The S&P 500 is the World’s Largest Momentum Strategy

Buffett on Apple Computer

The headline in today’s Wall Street Journal, “Apple in Long Losing Streak, Bad run hits eight days, iPhone maker’s longest since 1998” illustrates the current state of the company’s stock.  It wasn’t long ago that market pundits were touting Apple as the first trillion dollar market cap company and that the growth of Apple would continue on an upward trajectory in perpetuity.  Unfortunately, the law of large numbers makes that reality extremely difficult to achieve.

Continue reading