ACTION POINT
MAKE SURE YOU HAVE SOME DEFENSIVE HOLDINGS IN YOUR PORTFOLIO
MAKE SURE YOU HAVE SOME DEFENSIVE HOLDINGS IN YOUR PORTFOLIO
- Ward’s Choices: Counter-cyclical stocks like utilities and cell tower companies
- Individual Investors’ Choices: Defensive non-stock assets like cash, Treasury bonds, gold …
HAVE FAITH IN THE RESILIENCE OF THE U.S. ECONOMY
HAVE FAITH IN THE RESILIENCE OF THE U.S. ECONOMY
- Contractions are caused by:
- Excesses in important sectors of the economy
- Overheating and “irrational exuberance”
- Prices and inflation spike
- Federal Reserve tightens monetary policy
READ: “SOCIAL VALUE INVESTING: A MANAGEMENT FRAMEWORK…”
Social Value Investing: A Management Framework for Effective Partnerships
By Howard Warren Buffett and William Eimicke
- Public, private, philanthropic partnerships can work
- Neither sector can solve global challenges by themselves
- Working together can be more effective in addressing big issues such as inequality, climate change, affordable house, healthcare & food insecurity
- Buffett & Eimicke show examples of effective & ineffective ways to partner
READ OR REREAD BUFFETT
Read or reread Buffett: The Making of an American Capitalist
- fascinating & detailed portrait
- experiences that shaped him
- obsession with making money
- evolution of investment approach from Benjamin Graham classes
INVEST WITH FUNDS AND FIRMS THAT ARE COMMITTED TO PATIENT INVESTING
INVEST WITH FUNDS AND FIRMS THAT ARE COMMITTED TO PATIENT INVESTING
- Short-term oriented world
- Investors under pressure to fire underperforming funds and hire outperforming funds
- Most investment managers and firms don’t have patience, ability or desire to stick with long-term strategy
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