At least to a limited extent, Warren Buffet and I had the same teacher: Benjamin Graham. The other Warren studied under him in grad school at Columbia and I’ve read his most famous book multiple times.
Calculus, as you may remember, makes it possible to compute the area under a curve by imagining a series of narrow rectangles. The secret to the calculation is that if you make the rectangular slices infinitely narrow, each section of the curve can be thought of as a straight line forming the top of a rectangle.
Welcome back to my New Year’s thoughts about financial and life planning.
Last week I discussed insurance but didn’t have enough space to mention long term care.
You probably remember the old story. A child asks his mom why they always trim the end of a ham before putting it in the oven to bake. She replies that she’s not sure and suggests they call grandma from whom she got the recipe.
Our intrepid employees in Washington DC have once again passed a last-minute tax act, part of which is retroactive for the entire year of 2019. Apparently, none of them actually prepare their own tax returns. This law, known as the SECURE Act, is 715 pages long. I haven’t read all of it yet but I doubt if many members of Congress have either.
As the year draws to a close it’s tempting to try to predict what 2020 will bring, especially in the markets. Here’s a brief article from the thoughtful people at Dimensional Fund Advisors discussing that very topic.
The year 2019 served up many examples of the unpredictability of markets.
Music fans of a certain age were saddened to learn of the recent passing of Aretha Franklin, long known as the Queen of Soul. Financial planners of all ages were saddened to learn of yet another person dying without a complete estate plan, including a will. Unfortunately, she’s just the latest in a long line of famous people who should have known better.
All investors recognize the need for information.
According to Wikipedia, today’s title relates to a governmental decision to reduce regulations and taxes in order to attract business to its jurisdiction. Often attributed to Justice Louis Brandeis, the concept has been around since the late 1800’s.
The retail brokerage industry began in New York City in 1792 with the signing of the Buttonwood Agreement. It established the organization now known as the New York Stock Exchange and fixed commissions for customers at one quarter of one percent.