Search Results for "kevin o'leary" : 7

This and That: Financial Risk, Kevin O’Leary and more…

October 5, 2012

3 comments

Bernstein’s lesson from the Financial Crash

In an interview with Money magazine, author William Bernstein explains the key lesson of the financial lesson that can be applied to the asset allocation of folks at or nearing retirement. One could argue that even retirees need a healthy allocation to stocks to survive the ravages of inflation.

Kevin O’Leary: TV Billionaire

Mr. O’Leary may make for great TV but his business and investment records are quite ordinary says this hard-hitting story in the Report On Business Magazine.

Money Advice from the Great One

The Financial Post reported that Wayne Gretzky speaking at an event organized by TD Waterhouse said that he likes to avoid leverage, keep most of his money in a bank account and not risk more than 10% of his wealth on any investment opportunity. It might be good advice for sportsmen who have a general tendency to blow through millions but I’m not sure if the Great One’s financial strategies are applicable to the other 99 percent.

Your Financial Toolkit

The Financial Consumer Agency of Canada has put together learning material to help Canadians get a better handle on their financial lives. The material covers the entire waterfront from budgeting to taxes.

Modest Returns from Stocks and Bonds

This column in The Wall Street Journal says that investors should expect modest returns from bonds and stocks.

The secret to Buffett’s extra-ordinary returns

Over a 45-year period, Berkshire Hathaway has beaten the S&P 500 index by an annualized 10 percentage points. How did the company manage to compile such a stunning record of outperformance? The Economist magazine reports on recent research that points to low-beta stocks and low-cost leverage provided by float of insurance companies as reasons for Berkshire Hathaway’s investment returns.

Around the Blogs

A couple of week’s back I attended the Canadian Personal Finance Conference 2012 organized by Preet Banerjee and Krystal Yee. It was a wonderful opportunity to meet so many Canadian bloggers. My Own Advisor provided an excellent synopsis of the conference.

If you are in the market for a new credit card, Canadian Money Forum is running a limited-time offer on a Sony MasterCard.

Michael James on Money shows that a back test of using stock options to limit stock market risk produces poor returns.

Avrex on Money, a new financial blog, compares three dividend ETFs to determine which one is suitable for a portfolio.

Note to Kevin O’Leary: Don’t Confuse GDP Growth with Stock Market Returns

January 5, 2010

46 comments

It is painful to listen to Kevin O’Leary (to steal his own phrase) go on show after show on CBC’s The Lang & O’Leary Exchange recommending that investors focus on stock markets in emerging markets that are growing rapidly. Mr. O’Leary likes to say that he wants to put his money in countries that have high GDP growth rates such as China and India, not developed markets in North America and Europe that have anemic growth. Mr. O’Leary should stop confusing economic growth with stock market returns and brush up on the vast quantities of academic research out there that shows that, if anything, the correlation between GDP growth and equity returns is negative:

Thick as a BRIC by William Bernstein

You don’t have to go cross-eyed with regression analyses to convince yourself; a few anecdotes tell the story. During the twentieth century, England went from being the world’s number one economic and military power to an overgrown outdoor theme park, and yet it still sported some of the world’s highest equity returns between 1900 and 2000. On the other hand, during the past quarter century Malaysia, Korea, Thailand and, of course, China have simultaneously had some of the world’s highest economic growth rates and lowest stock returns.

Under the ‘Emerging’ Curtain by Jason Zweig

Based on decades of data from 53 countries, Prof. Dimson has found that the economies with the highest growth produce the lowest stock returns — by an immense margin. Stocks in countries with the highest economic growth have earned an annual average return of 6%; those in the slowest-growing nations have gained an average of 12% annually.

What Does a Good Economy Really Mean For Your Portfolio by Larry Swedroe

University of Florida professor Jay Ritter found that the correlation of GNP growth and stock returns for 16 countries was actually negative. He says “whether future economic growth is high or low in a given country has little to do with future equity returns in that country.”

Growth in China, India and Brazil Might Not Mean Great Investment Returns by Larry Swedroe

Dimson notes that investors chasing returns in rapidly growing countries are “paying a price that reflects the growth that everybody can see.”

This and That: Q3 2010 Bank Earnings and more…

September 2, 2010

6 comments

Charlie Munger is Warren Buffett’s sidekick in Berkshire Hathaway and an investment legend in his own right. In this video, he shares his insights into Berkshire’s share price, Wall Street and picking stocks:

  1. The always dependable Canadian Banks and Insurance Blog shares analyst reactions to the Q3 2010 earnings from the Big 5 banks: Royal Bank, Scotia Bank , Bank of Montreal and CIBC.
  2. James Daw once again draws attention to the plight of Nortel employees drawing long-term disability benefits. How often should this tragedy repeat before Governments are going to act?
  3. Million Dollar Journey featured a guest post that reminded investors not to confuse economic growth with stock market returns. I hope Kevin O’Leary is listening!
  4. Larry MacDonald asks a mortgage professional’s opinion on where mortgage rates are headed.
  5. Preet points out that even finance professionals do dumb things when it comes to their portfolio.
  6. The Financial Blogger shares the insights he learned from the 4-hour workweek book.
  7. If you are mortgage-free, Ellen Roseman reminds you to ask if discount is available on your home insurance
  8. Michael James points out that market correlation numbers depend on the time scale you are looking at.
  9. Mike Macdonald shares the things that frustrate him about do-it-yourself investors. I agree with his list, especially the one about “follow my lead because I’ve made 30 percent per year for the past 7 years!”.
  10. Beating the Index points out why betting on oil is a big bet on the Chinese economy.

I’m unable to highlight all the articles worth checking out in my weekly round up but you can check them out through my Twitter feed. Have a great weekend everyone!