On the one hand the writer says risks are priced in and on the other hand he seems to say there are bargains overseas. How does he know which risks are and are not priced in? Also, how many years of underperformance would convince the writer that international diversification was an idea that did not pan out?
This is poor advice since anything that is generally known, e.g., the quality of a country's institutions, is already reflected in the price of the stock- that is a basic concept in finance.
Two observations, Jonathan - first, we human being do not have the ability to make predictions with 100% probability. I am sure you have made that point 1,000 times over the years. Second, a book that helped me think about the end of one's days is Atul Gawande's "Being Mortal" -- which deals with the practical aspects of death, in particular the death of his father and how his father chose to deal with the limited days left.
It is hard to know the answer to these questions. Presumably the writer accomplished what he did in large part because of the fear of the financial anvil hanging over his head. He has removed that fear from his children, which will probably make their lives more pleasant but less productive.
Comments:
On the one hand the writer says risks are priced in and on the other hand he seems to say there are bargains overseas. How does he know which risks are and are not priced in? Also, how many years of underperformance would convince the writer that international diversification was an idea that did not pan out?
Post: Stuck at Home
Link to comment from November 23, 2024
Sensible advice as usual.
Post: Advice for the Kids
Link to comment from November 9, 2024
This is poor advice since anything that is generally known, e.g., the quality of a country's institutions, is already reflected in the price of the stock- that is a basic concept in finance.
Post: Built for Success
Link to comment from November 2, 2024
Two observations, Jonathan - first, we human being do not have the ability to make predictions with 100% probability. I am sure you have made that point 1,000 times over the years. Second, a book that helped me think about the end of one's days is Atul Gawande's "Being Mortal" -- which deals with the practical aspects of death, in particular the death of his father and how his father chose to deal with the limited days left.
Post: The C Word
Link to comment from June 15, 2024
Jonathan, I have been reading your always excellent work since your WSJ days and wish you the best.
Post: The C Word
Link to comment from June 15, 2024
It is hard to know the answer to these questions. Presumably the writer accomplished what he did in large part because of the fear of the financial anvil hanging over his head. He has removed that fear from his children, which will probably make their lives more pleasant but less productive.
Post: How much financial help should parents give their children?
Link to comment from July 29, 2023
Inspiring story.
Post: Come a Long Way
Link to comment from July 12, 2023