Many individual investors sell when the market declines out of fear it will never come back. The data actually says the opposite...

 Key Takeaway: You should never try to emulate Wall Street investors who have a history of repeating these bad mistakes:

The markets have been on a tear following the recovery from the financial crisis—with some pundits saying a market correction is due. Here’s how to prepare yourself. 

Investors can, by their own behavior, make stock ownership highly risky, says Warren Buffet at his recent annual shareholders' meeting.

It seems like the world has suddenly discovered that index funds are the way to go. Here are links to two recent New York Times articles citing new research on the subject:

 Every other morning, a good friend of mine who is a triathlete goes to the local pool for lap swim before going into work. There are three lanes: slow, medium and fast.  Which lane do you think is the fastest? Turns out it’s not the fast lane.

After analyzing 325,000 investor portfolios, SigFig finds that investors who trade frequently actually see lower returns than their peers who are more hands-off... 

Experiments show we are hard-wired to let our emotions steer financial decisions, often in the wrong direction...

Last week was uncomfortable for market watchers.

The investment behavior of households could be influenced by their own past experience, especially by the return performance of their portfolios.

“It’s not too much of a stretch to say that we’re in a race between how much wealth and value and improvement in lifestyles human ingenuity can create versus how much destruction of wealth and lifestyles governments can destroy.”

Compared to index funds, actively managed funds charge higher investment management fees and, because there is more turnover, they incur much higher transaction related costs.

Following up on my recent post, New Research on All-in Funds, I thought it would be informative to show how this plays out in the real world.

Young students coming out of business school invariably ask me, "What is the one thing I must master to achieve success in the investment world?"

The holidays are a time for relaxing, helping the less fortunate, showering family and friends with love and attention—and, sometimes, for smiling and nodding through unsolicited stock tips from an overbearing relative who has been sampling the eggnog.

It is gratifying that Eugene Fama and Robert Shiller won the Nobel Prize in economics last month because these scholars have had a formative influence on my investment thinking over the years, but their theories are contradictory... Which one is right?

These are notes from the book I wish I’d written. It pretty much says it all. The path of the author, Gordon Murray, mirrors my own high-flying experience on Wall Street and subsequent epiphany about the right way for individual investors to find investment success.