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 … Watch the related WEALTHTRACK episode.
ACTION POINT
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 Watch the related WEALTHTRACK episode.
READ: “SOCIAL VALUE INVESTING: A MANAGEMENT FRAMEWORK…”
Check out: 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 […]
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 Watch the related WEALTHTRACK episode.
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 Watch the related WEALTHTRACK episode.
OWN SOME U.S. TREASURIES
OWN SOME U.S. TREASURIES Safe haven asset class in recession eras U.S. rates higher than other developed markets Longer maturity = more dramatic price moves Every 1% decline in yield: – 2-yr Treasury note value + 1.9% – 10-yr Treasury note value + 8.6% – 30-yr Treasury bond value +19.1% Watch the related […]