Using Standard Deviations, Portfolio Correlations, and the Sharpe Ratio

I am a big believer in the importance of implementing statistics while investing. In particular, I find standard deviations, portfolio correlations, and the Sharpe ratio to be essential in managing risk. Too often, I hear of investors getting burned because they don’t perform their proper due diligence. It isn’t enough to pick the highest-performing stocks […]

How to Stop Being Broke by Increasing Your Personal Cash Flow!

If I gave you three seconds to answer the question of, “what is your personal cash flow?”, could you answer? If you’re not able to immediately say “yes” then we might have an issue.  Do you find yourself asking a clarifying question on what exactly I might mean?  Do you just flat out not even […]

If You Forget These Personal Budget Categories, Your Budget WILL FAIL!

The easiest way to fail on your personal budget is to not plan.  That’s it – that’s how to fail.  Or, maybe you plan but your plan fails you.  To have an effective plan it all starts at the same point – making sure you have the correct personal budget categories included from the get-go. […]

Is Cloning Top Fund Managers and Their Portfolios a Good Way to Go?

In Alice Schroeder’s biography of Warren Buffett, The Snowball: Warren Buffett and the Business of Life, Buffett admits that much of his early success was the result of “coat-tailing.” He followed the activities of top fund managers – like Graham – whose ideas could make him a lot of money. When we start, in anything, it […]