Trahan On Why Small Caps Have Lagged — And Why They’re Going To Take Off

Top-rated economist Francois Trahan is sounding very bullish on stocks — particularly small stocks — and the big reason is the US’s positioning relative to the rest of the world.

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The Case For Small Caps

In his latest column for Seeking Alpha, Validea CEO John Reese lays out his case for not ditching small caps despite their weak recent performance.

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Take It From The Gurus: Boring Is Beautiful

In a recent article for Canada’s Globe and Mail, Validea CEO John Reese says that when it comes to investing, boring is beautiful.

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Why Buffett Likes Banks

While they may be known more for investing in insurance companies and firms that make and sell simple consumer goods, Warren Buffett and Berkshire Hathaway are also quite fond of bank stocks these days. In fact, if combined into one company, Berkshire’s bank investments would represent a $50 billion-market-cap bank — the eighth-largest in the US. And in a recent piece for CNBC, Tim Mullaney says that Buffett’s big bank position shows a good deal about his investment philosophy.

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Great Pages: Ben Graham’s “Mental Weapons”

Can a single page of a book change your investment life? We believe it can. Periodically, we highlight some of the Great Pages that have had a great impact on our investment philosophy. Today, we look at p. 34 from Benjamin Graham’s “The Intelligent Investor” (2005 edition), in which Graham talks about the mindset needed to distinguish oneself from the crowd in investing.

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Munger On Buffett, Temperament, And Why He’s Better Than Ben Graham

Charlie Munger isn’t nearly as high-profile as his Berkshire Hathaway partner Warren Buffett, but The Wall Street Journal’s Jason Zweig recently caught up with him for a fascinating interview in which Munger talked about everything from Socrates and Confucius to derivatives and accounting practices to why he doesn’t love Benjamin Graham the way Buffett does. Continue reading

Quality Investing Works — If The Price Is Right

Investing in “high-quality” stocks sounds like a no-brainer. But in a very interesting piece on, Vitali Kalesnik and Engin Kose of Research Affiliates show that quality metrics alone don’t provide the boost to returns you might expect. (H/T Stingy Investor)
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