Tag: Warren Buffett

Buffett’s Passive Can of Worms

A great deal of confusion exists today about the merits of passive investing as compared to well-researched active management. An added layer of confusion arose in March when Warren Buffett explained that 90% of his widow’s money would be invested in a low-cost S&P 500 index fund. If this summer was a football game, 15-yard personal foul penalties would be thrown everywhere as experts piled on top of that announcement.

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Reuters: CIO Bill Smead discusses BRK’s 3rd Quarter Earnings

Berkshire quarterly profit hurt by winter weather, insurance By Jonathan Stempel and Luciana Lopez For more information go to www.reuters.com. The information contained in this article represents SCM’s opinions, and should not be construed as personalized or individualized investment advice. Past performance is no guarantee

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Hangman: The ETF Revolution

Financial innovation in the investment business is, in our opinion, sometimes just smoke and mirrors. The recent movie The Incredible Burt Wonderstone illuminates what this smoke and mirror façade can produce. The movie portrays two magicians who have a long-running show on the Las Vegas Strip. One act of their show is much like the game of Hangman. Burt Wonderstone (played by Steve Carell) presents the trick to the audience while his side kick Anton (played by Steve Buscemi) walks up the top of the platform and prepares to put his head inside the noose. Both entertainers put cloaks on to mask their body and head. The noose is tightened for the hangman. The trapdoor of the hangman drops. Seconds later, the head covers are pulled and magically the entertainers have deceivingly traded places without the audience knowing. How magical!

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