Any good economist will tell you that, if you have a sufficiently long time horizon, stocks are a very good investment.  Indeed, my colleague Jeremy Siegel used that sentiment as the title for his excellent book  Stocks for the Long Run  Investing is stocks is a wonderful idea if … [Read more...]

Are the financial markets rigged? Do some speculators have unfair advantages that assure their success at your expense? Celebrated author Michael Lewis thinks so. In the run-up to his new book, Flash Boys he has declared “high-frequency trading” to be just that. Lewis calls … [Read more...]

Last week, in order to demonstrate the power of compound interest most dramatically, I wrote about compounding at 100% per period. The huge numbers that result can really get one’s attention. Today let’s consider compound returns using rates that are very realistic. In doing so, … [Read more...]

Among the most important concepts an investor must comprehend is compound interest. While the idea is simple, the math can get complicated. The concept is straightforward, though, even though it is definitely not intuitive.  In the end, the compounding of returns means that there … [Read more...]