Insights from the whole gang. Ritholtz Wealth Management is a registered investment advisor providing financial planning, advice and portfolio management.
Today in market history, 2002:
Netflix raises $82.5 million in its initial public offering, with a total valuation of $300 million.
Blockbuster Video had raked in about $800 million in late fees that same year.
Netflix goes on to gain 15,000%, Blockbuster goes extinct.
Today in market history, 2008:
Presidential candidates Barack Obama and John McCain agreed to suspend all campaign ads to commemorate the 7th anniversary of 9/11. They toured Ground Zero side by side and laid roses on the reflecting pool.
Today in market history, 1975:
With only three people employed in the company, The Vanguard Group begins operations. Today, Vanguard manages $5.1 trillion.
Today in market history, 1995:
The Netscape IPO kicks off the Internet Era, led by 24 year old
@pmarca
. Prices at $28 per share, explodes to $74 intraday.
Today in market history, 1997:
Apple finalizes $400 million deal to bring Steve Jobs back with an acquisition of his new company. Total return for $AAPL until his death: 9210%
Today in market history, 1923:
The book "Reminiscences of a Stock Operator" is published. It was written by Edwin Lefevre based on interviews with the greatest speculator who ever lived, Jesse Livermore.
Today in market history, 1924:
Charlie Munger is born in Omaha, Nebraska. Munger would meet Warren Buffett at age 31. The duo would, through their operation of Berkshire Hathaway, become the greatest investors in history.
source:
Today in market history, 2005:
For the 6th straight meeting, Alan Greenspan's Federal Reserve hikes overnight rates by 25 bps to 2.50%. The Maestro would keep going until every homeowner in America was underwater and half the investment banks on Wall Street disappeared.
Today in market history, 1889:
Happy birthday to
@WSJ
- first published today 129 years ago. Charles Dow’s four-page edition cost two cents per copy, or 51 cents in today’s money.
Today in market history, 1969:
Ed Thorpe's Convertible Hedge Associates, later renamed Princeton/Newport Partners opens for business. He crushes the market mercilessly for the next two decades with pure mathematics.
The judges on Shark Tank were offered a 10% stake in (smart doorbells) for $700,000 - valuing the company at $7 million at the end of 2013.
They passed.
Amazon just bought the business for $1 billion this week.
@awealthofcs
Occam’s Razor on Interest Rates and the Stock Market
"The fact that investors no longer have a safe haven where they can earn decent rates of interest will have many unintended consequences."
by
@awealthofcs
Comfortably Numb About Inflation
"A 2% annual inflation increase destroys almost 50% in real purchasing power after 30 years. A $50,000 in a conservative stock/bond mixture will almost triple with a 3% real return over the same period."
by
@ATeachMoment
Today in market history, 2001:
President Bush signs a $1.3 trillion tax cut. Wage growth remains stagnant for the next eleven years and the stock market suffers a lost decade with no returns.
Daniel Kahneman on Intuition
"The guy won a Nobel Prize for his work on behavioral psychology and basically created the field as we know it today and he still doesn’t believe it’s helped him overcome his built-in biases."
by
@awealthofcs
How the Stock Market Works
"The longer you play in a casino, the greater the odds you’ll walk away a loser because the house wins based on pure probability. It’s just the opposite in the stock market."
by
@awealthofcs
Today in market history, 2013:
The Associated Press Twitter account is hacked at 1:07PM and tweets that there was an explosion at the White House. The stock market loses $136 billion in 3 minutes.
On this day in market history, 1929:
Yale economist Irving Fisher said "stock prices have reached what looks like a permanently high plateau."
After the crash 9 days later, investors would have to wait until the mid-1950's to see the stock market reach that plateau again.
Today in market history, 2007:
Wachovia acquires A.G. Edwards for $6.8 billion. Combined, they will manage $1.1 trillion in client assets.
Within 18 months, Wachovia loses $100 billion in market cap, Wells Fargo buys the whole thing for $15 billion.
Today in market history, 1991:
Tim Berners-Lee posts the first ever web page to the Internet. He uses a NeXT computer at CERN. Berners-Lee's page explains what the web is and how to make more content for it.
It’s OK to Be Bearish But It’s Not OK to Stay Bearish
"Successful long-term investing comes from letting go of the desire to pretend like you know what’s going to happen all of the time."
by
@awealthofcs
Today in market history, 1974:
Richard M. Nixon becomes the first US President in history to resign the office after two years of claiming "witch hunt". The Dow Jones falls 1% the next day, 15% over the next month.
How to Outperform
"Indexing doesn’t provide you median returns. Over longer time frames, it almost guarantees you’ll end up in the top quartile or decile of performance."
by
@awealthofcs
Crisis Du Jour
"Investing is not easy, and returns elude those who trade on emotions. As [the media] try to scare you tonight about the market doom and gloom, remember that these knocks are par for the course for investors."
by
@BlairHduQuesnay
The financial crisis in one sentence: Good things happened to bad people, and bad things happened to good people. Executives who contributed to the crisis retain enormous wealth, while those who trusted them suffered life-altering losses. -
@jasonzweigwsj
On the Inevitability of Bear Markets
"I’ve read enough market history to understand that we humans always take things too far. We can’t help ourselves."
by
@awealthofcs
"The quality of life in the 21st century is light years beyond what people experienced in the 19th century, but people compare themselves with their neighbors, not with their ancestors.”
-
@michaelbatnick
This Version of Warren Buffett
"If 2015 was the Warren Buffett legend at the peak of its power and influence, what we saw this weekend is a reminder that five more years have gone by and everyone’s gotten half a decade older."
by
@ReformedBroker
Today in market history, 2008:
Lehman Brothers drops a bomb with its Q3 earnings report - a loss of $3.9 billion and plans for a massive fire sale of assets, including its 55% stake in Neuberger Berman. The stock, now $7, had been crushed 52% during the prior two days.
20 Lessons From 20 Years of Managing Money
"The best portfolio is the one you can stick with come hell or high water, not the one that’s the most optimized for silly formulas or spreadsheets."
by
@awealthofcs
31 Years of Stock Market Returns
"I don’t know what the returns will look like over the next three decades. But I am confident there will be plenty of risks, downturns, geopolitical crises, scary headlines and economic contractions."
by
@awealthofcs
Barry:
“Reading the pundits, I cannot tell which fate awaits us: the robot-driven apocalypse where we are all out of work, or the inevitable spike in wages that sends rates much higher and kills the market.”
9 Underrated Investing Books
"When everyone reads the same exact investment books about being a contrarian it seems to become more difficult to be an actual contrarian anymore."
by
@awealthofcs
How Long Does it Take to Make Your Money Back After a Bear Market?
"The question is not only how bad can it get but how long will it take to make our money back?"
by
@awealthofcs
A History of Bear Market Bottoms
"There are no rules for how the market bottoms. Stocks go down a lot, and then they keep going down more until they stop going down, and then they go up, sometimes a little and other times a lot."
by
@michaelbatnick
On MIB,
@ritholtz
talks with Robert Cialdini, Professor Emeritus of Psychology and Marketing at Arizona State University and author of the classic "Influence: The Psychology of Persuasion" and "Pre-Suasion: A Revolutionary Way to Influence and Persuade."
Easy Money is Money Easily Lost
"We’re all human. It’s understandable that people get caught up with the herd mentality when markets are rocking and it seems like everyone else is making money hand over fist."
by
@awealthofcs
How to Use Behavioral Finance in Asset Management, Part I
"How can a practitioner take what we know about the ways cognitive errors impacts investors, and use these to design the fundamental building blocks of a wealth management firm?"
by
@ritholtz
Timing the Market
"The more you pay for an investment, the less you should receive, on average. But the idea that you can use valuations as a way to time the market is probably not going to work for most people, most of the time."
by
@michaelbatnick
Today in market history, 1924:
Charlie Munger is born in Omaha. He met Warren Buffett at age 31. The duo go onto become arguably the greatest investors in history.
image:
The 11th Commandment
"Most of the time, stocks went up, but there were times they went down. The stock market goes up and down regardless of which party is in office."
by
@awealthofcs
Debunking the Silly “Passive is a Bubble” Myth
"Isn’t it a good thing most small investors have decided they can’t compete with the professional active managers who trade with one another?"
by
@awealthofcs
Who Benefits From a Market Correction?
"Young people should get on their hands and knees to pray for a crash so they can buy stocks at lower prices, higher dividend yields, and lower valuations. "
image:
by
@awealthofcs
"Security is mostly superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. The fearful are caught as often as the bold."
- Helen Keller
Explaining the 2020 Stock Market
"Understanding the U.S. stock market in 2020 is fairly easy — the bigger, more expensive companies are performing better than the smaller less expensive companies. That’s it."
by
@awealthofcs
"You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets.”
- Peter Lynch
Saquon Barkley said he plans to invest his salary and live off his endorsements. Bought his parents a house this week before even signing his contract.