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.

This article has 3 comments

  1. The article on O’Leary was very interesting. It seems that his marketing skills are quite strong. Thanks for the mention.

  2. CC. Thanks for the blog mention. 🙂

    And yes, all should check out My Own Advisor’s synopsis of CPFC12. The enthusiasm and friendliness of this group of people was great to experience. This collective of financial bloggers provides a great educational resource to the public.

  3. Thanks for the mention! I enjoyed the O’Leary article. I need to read that Bernstein one, his books are excellent.

    Have a great weekend,