Not Following the Herd Be fearful when others are confident and confident when others are fearful. –Warren Buffett Of all Buffett’s quotes, the one above might be the most popular; it’s certainly the most cited the last 2-3 years (and was quoted frequently by Ben Stein at Edina’s annual meeting Wednesday). So, is now a...Read More
“Waiting for the Light” “Be aware that the market does not turn when it sees light at the end of the tunnel. It turns when all looks black, but just a subtle shade less black than the day before.” –Jeremy Grantham, “Reinvesting When Terrified“; (March 2009 Newsletter) Grantham, who manages $85 billion and is one...Read More
Timing the Housing Market As John Maynard Keynes famously observed, “the market can stay irrational longer than you can stay solvent.” Or, in the case of housing the last decade-plus: ‘stay above trend line longer than you can stay in a rental.’ Citing the charts reproduced at right, commentators like Barron’s Alan Abelson make the...Read More
Perils of Waiting for the Market to Come Back People assume when [the sale market] slows down, rental will pick up, but that depends . . . When you’re losing jobs, the rental market is also going to suffer. –“A Month Free? Rents are Falling Fast“; The New York Times (1/30/2009) Although the story focuses...Read More
