After a few years of reading the famous annual letter from Buffett (tag) to his investors, and three years of following the live Yahoo! stream of the annual meeting in Omaha, last year I shared my impressions for the first time. Here is the second installment.
The greater fool theory of finance says it’s sometimes possible to make money by purchasing overvalued assets (items whose purchase price exceeds their intrinsic value) and reselling them for a higher price later.
This theory states that prices go up when people can sell overvalued securities to the “greater fool,” regardless of whether the securities are overvalued. Suppose one “fool” purchased an overpriced asset, hoping that he could sell it to an even “greater fool” who would profit from it. A system like this can only work if new “greater fools” are willing to purchase the asset at ever-higher prices. Continue reading “The Greater Fool”
“The Simple Path to Wealth” is the book by Jim Collins, that compiles and re-organizes everything in his Stock Series posts from the blog he started a few years ago to teach his daughter about finances.
Warren Buffett (tag) is the most famous investor ever, head of Berkshire Hathaway and known for his folksy demeanor, common-sense approach to investing (and life) and because every year he writes a letter to the investors in his company.
I will share here what I went through deciding whether to go with Mint or Personal Capital. And why do I even keep one of them…
