Check out these best links from around the web from last week, including the economic week in review, an assessment of certain common investment biases, a chart to give you comfort when your favorite stock closes at a new low, some great advice from Elon Musk, and a little insight into the Berkshire Hathaway Shareholder Meeting.
Week in Review: Greek Debt Drama Caps Volatile Week
The rising risk of a Greek debt default jolted markets Friday. Global stock volatility increased, while “safe-haven” government bond yields fell. The 10-year US Treasury yield slipped below 1.90%, and German 10-year bund yields dropped to new lows near 0.07%.
Investors took weak Chinese economic growth as increasing the likelihood of further central bank stimulus. Oil prices climbed in response to evidence of peaking US production, as US oil rig counts fell sharply in February and March. Corporate earnings reports for the first quarter were mixed.
This Is Your Brain on Money: How Investors Trip Themselves Up
Making off-the-cuff decisions, being prone to bias, and getting swayed by market moves. Is that any way to make money in the stock market?
Researchers have found signs of all three behavioral traits in new studies that offer fresh evidence that investors can be their own worst enemies.
This article presents three new studies showing the biases that affect many investors, both institutional and retail alike. And as the author Liam Pleven appropriately points out: ‘In his classic book “The Intelligent Investor,” Graham wrote, “We have seen much more money made and kept by ‘ordinary people’ who were temperamentally well suited for the investment process than by those who lacked this quality, even though they had an extensive knowledge of finance, accounting, and stock-market lore.’
Elon Musk – Work Ethics, Principles, Attitude, Failure – Pearls of Advice
A brief compilation of a few speeches and interviews given by Elon Musk, this video has some actionable advice that can be applied to achieve success in investing (and really in any field in general, as Mr. Musk has clearly already proven). Notably, look for his comments about hard work and his personal framework for thinking. Musk boils things down to their most fundamental principles and then builds up from there, rather than simply repeating or just only slightly modifying what already exists. This is how he has created such innovative and disruptive companies. If you can apply this same concept to investing, then you’d be able to develop a contrarian mindset and find opportunities that no one else can (when you start asking, “Should this stock really be worth this much, or is it only at this price because everyone else says so?”).
The annual Berkshire Hathaway Shareholder Meeting will be held on May 2 and is expected to draw a crowd of over 40,000, and I’m fortunate enough to have the opportunity to be in that crowd at this year’s meeting. I will be live tweeting the entire meeting, from Friday to Sunday, so be sure to follow me on Twitter @Vintage_Value (I’ll follow you back, too).
Click the link below to check out the meeting materials that Berkshire sends its attending shareholders: