26189827 - checklist paper and pen

Building an Investment Checklist

By John P. Reese —  In this year’s letter to Berkshire Hathaway shareholders, Warren Buffett refers to the conglomerate’s “gradual shift from a company obtaining most of its gains from investment activities to one that grows in value by owning businesses.” An article in the Wall Street Journal last month titled, “Warren Buffett’s Berkshire Moves Away from Stock Picking,” underscores the shift in the context of the conglomerate’s offer to purchase power-transmission firm Energy Future Holdings for $9 billion in cash. But the two activities are really horns on the same goat, and together represent what Buffett later calls a “two-pronged approach” […]

Politics Shouldn’t Impact Investing Decisions

“In a period of otherwise extended market calm, ” says a New York Times article published in May, “geopolitics have been driving periodic bouts of volatility.” Citing such events as President Trump’s attempt to shut down the F.B.I. investigation of former national security adviser Michael Flynn, the article says, “Even small investors have been making bets on the impact politics can have on stocks and other asset classes.” But this isn’t a wise move, according to InvesTech Research president James B. Stack who says, “Investors should tune out political events.” He argues, “geopolitical events may be widely feared…but seldom do […]