The Moment Warren Buffett Became Famous

Sometimes, it’s easy to forget about the moments that “make” someone famous. My favorite high school teacher was always quick to remind me that Robert Frost’s iconic poetry like “Fire And Ice”, “Stopping By Woods On A Snowy Evening”, or “The Road Not Taken” weren’t always part of the national consciousness. Even though he had been winning Pulitzer prizes and had become somewhat of a celebrity among eastern college students and academics, he didn’t really become a household name until he spoke at JFK’s inauguration and read “The Gift Outright.”

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Warren Buffett On Diversification

Reader “sumflows” uploaded this video from Warren Buffett’s speech at Florida that discussed Buffett’s advice on diversification, and the best part about it is that Buffett gives advice based on the particular goals that leads each person to investing in the first place.

http://www.youtube.com/watch?v=wbjPiYE-F4Y&feature=youtu.be

If you are someone that is making $9,000 per month post-tax and is only spending $6,500 of it, and you don’t have a particular desire to spend a lot of time studying individual companies, then it makes a lot of sense to open up an account with Vanguard and funnel the money into the S&P 500 Index Fund each month that barely costs anything in fees (the expense ratio for “VFINX” is 0.17%, meaning you would have to pay $17 each year on every $10,000 you entrust to this S&P 500 Index Fund run by Vanguard).

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The Original Dow Jones and Forever Investing

Happy New Year! Let’s kick things off right by uncovering a good look at what happened to some of the oldest members of the Dow Jones Index, way back in the 1890s.

The components that were part of the index in the 1890s may sound unfamiliar to some of you: Chicago Gas. American Cotton Oil. Laclede Gas. American Spirits Manufacturing. National Lead. Tennessee Coal & Iron. U.S. Leather. American Sugar.  U.S. Rubber. North American Company. American Tobacco. General Electric.

Having paid many utility bills to Laclede Gas, I’m all too aware that they are still with us. And obviously, we all know that General Electric is still with us. But still, it can be easy to take a look at lists like that and assume that nothing “lasts forever” and you need to constantly churn your portfolio.

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