Happy New Year! We had another excellent year and I think you will be pleased with the results. Our diversification into such areas as real estate, small stocks, international stocks, and emerging markets stocks and bonds was very profitable in 2004. Returns in those areas beat the U.S. stock market, as measured by the Standard & Poor’s 500 Index. The […]
Quarterly Letters
Client Letter – Q3 2004
So what’s going to happen to the market after the election? That question seems to be on the minds of many individual investors these days. The implications are that the market will be affected by the election and in a different way depending on which party lands on Pennsylvania Avenue. More importantly, the investor who asks this question is also […]
Client Letter – Q2 2004
Much of Wall Street and the financial media are geared up to get you to make investment moves. “Buy, sell, trade, exchange, invest,” are among the verbs they shout at you every day. Few tell you that it is probably better to do little or nothing once you have set up a diversified investment portfolio. Consider this: Assume you invested […]
Client Letter – Q1 2004
The real danger to our wealth is not inflation or risky stock markets or federal budget deficits. Instead, the simple mistakes most investors make hurt them far more than any outside market or economic forces. An investor with a diversified portfolio who is patient and waits out temporary slumps in the markets has a high chance of making his wealth […]
Client Letter – Q4 2003
Happy New Year! After reviewing my clients? performance reports, I am almost speechless (which is a rare occurrence)! This past year will surely go down in the record books as one of the best ever, especially for well-diversified investors. But, before we get too excited, let’s see if there is something we can learn from the events of 2003. Take […]
Client Letter – Q3 2003
Once again, we’ve had a great quarter! I have included a Monthly Performance Report from DFA, which shows the quarterly performance for all of the DFA funds. I have placed stars next to the primary DFA funds that I use in my average size portfolios. If you take a moment to review the quarterly performance of these funds, you will […]
Client Letter – Q2 2003
Since last quarter, most equity asset classes have experienced huge rebounds! Finally, your patience has been rewarded! Reuters reported that the S&P 500 had its “best quarter since 1998”—even though its quarterly return (about 15%) was less than that of many other equity asset classes. For example, some of the top performing asset class funds in my portfolios included the […]
Client Letter – Q1 2003
War in the Middle East, a depressed economy at home, a three-year bear market: what should investors do in these highly uncertain times? Some investors jump out of stocks and head for the “safety” of fixed income investments or temporarily stop making investment purchases. Others hang on to their investments but agonize over fears of capital loss. These are probably […]
Client Letter – Q4 2002
I hope that you enjoyed the holiday season! In order to start this year on a positive note, I thought that it might help if we look at 2002 with the proper perspective. The chart below shows annualized investment returns for the major asset classes over three periods—one year, five years, and ten years (all of which end December 31, […]
Client Letter – Q3 2002
The 2000-2002 bear market, which has lasted over two years, has scared many investors. The market’s steep declines are scary, but a long-term view can ease some of your anxiety. There is no question that the market can be very risky in the short run. That is why you should never invest money in the stock market that has a […]
