I have a relative—let’s call her Jane. Last year, in the early days of the pandemic, Jane had the foresight to buy shares in vaccine maker Moderna. With the benefit of hindsight, it was a smart decision. But in Jane’s view, it was not a difficult decision. It was no secret that the company was [...]
My Portfolio, Part II
A while back, I talked about an oddity in my own portfolio. But I have a confession: That wasn’t the only one. In the interest of transparency—and because it may be instructive—I’ll share five more such oddities, and the thinking behind them: While I firmly believe that low-cost index funds are [...]
“Unnatural, insane and dangerous”
Every once in a while an arcane topic jumps from obscurity into the headlines. Such was the case this week when everyone was talking about the “short squeeze” on Wall Street. Below I’ll explain what happened then offer thoughts on how you might respond. What does it mean to short a stock? In [...]
Explaining, confirming, debunking
A few weeks back, I noted how the stock market had become unusually top-heavy, with just five companies—Amazon, Apple, Facebook, Google and Microsoft—accounting for 20% of the overall value of the S&P 500. But a chart that appeared online this week illustrates the impact of that imbalance. What [...]
One feather at a time
In her most recent book, former Secretary of State Madeleine Albright quotes Mussolini: “If you pluck a chicken one feather at a time,” he said, “no one will notice.” Don’t worry—I‘m not veering into political commentary. But when I heard this quote, it brought to mind what we’ve been seeing in [...]
