In the pursuit of successful long-term investments, conventional wisdom often focuses solely on identifying potential upside – the "bull case." However, a more rigorous and ultimately more rewarding approach involves a counterintuitive step: actively constructing a compelling "bear case" or short-selling argument against a potential long investment.

This financial metric may be the most important concept to understand about investing

While the Apples, Amazons, and Googles of the world rightfully command attention, savvy investors understand that true opportunity often lies beyond the well-trodden paths. These giants, with their armies of analysts and constant media scrutiny, leave little room for uncovering hidden value.

Missing out is the hardest emotion in investing, how do we stay calm when we miss out on a big return because we didn’t act?

A recent study by Professor Derek Horstmeyer (1) and his research team has uncovered a concerning trend in the mutual fund industry: many actively managed funds are essentially engaging in "closet indexing." This means they are closely hugging their benchmarks, mimicking their performance, while still charging higher fees than passive index funds.

When you think of private investment funds, images of venture capital, private equity takeovers, and exclusive hedge fund strategies might come to mind. But there's a unique category gaining traction: private funds that invest in public equities.

Wait, isn't that what mutual funds do? Not exactly. Here's how these private funds differ and why they might be attractive:

While the siren song of short-term market fluctuations may tempt some, true investment mastery lies in recognizing that sustainable wealth creation is a marathon, not a sprint. It requires patience, discipline, and an unwavering focus on the underlying value of the businesses we own.

The Defining Traits of a Truly Great Company

Investing success hinges on the ability to discern between fleeting trends and enduring value. This requires a keen understanding of the factors that contribute to a company's long-term prosperity. Here are some of the key attributes I look for:

Years ago, as I was studying and working my way through my MBA program, an invite was sent out to the finance class for an opportunity to travel to Omaha and have lunch with a certain successful investor headquartered there. The trip didn’t end up working with my schedule and I didn’t immediately regret not going. However, a couple of years later, I picked up a biography on a whim about Warren Buffett called, "The Snowball." The book talks about his approach to business and investing and I absolutely devoured the book. It started me on a path to learn everything I could about investing. I finished reading that book over fourteen years ago. Since that time, I have read hundreds, if not thousands of books, research articles, stock reports, and annual reports. It's been my absolute favorite hobby. Ask my family what book I'm currently reading and they will likely all roll their eyes and reply with, "another boring investing book." That first book about Mr. Buffett really inspired me, and I really wish I could go back and make that trip to Omaha.