Every now and then, you might encounter something in the stock market that makes you wonder: Am I crazy, or is everyone crazy? With what is going on at Tesla right now, I want to offer you the reassurance that it is the Tesla shareholder base that is completing disregarding the long-term intrinsic value of the corporation as the price of the stock has climbed from $35 last year to $585 now for a valuation of $555 billion.

The stock, which is set to be added to the S&P 500 in the coming days, is offering us a real-time lesson on why Jeremy Siegel’s papers concluded that investors would be better off owning the original S&P 500 without any of the additions that occur over time (the reasoning being that booted stocks usually are trading at too low of a price while the newly added stocks are getting there in … Read the rest of this article!

You know what I would like to read? A biography of the successful life decisions made by biographers using the knowledge acquired while covering the strategies of other successful people. I have this in mind anytime I read an interview with Alice Schroeder in which she discusses how her intense study of Warren Buffett’s tactics and philosophy have made her a better investor.

Specifically, she has mentioned that early in her career, she would often put up a mental block against purchasing companies that are trading at a higher price than existed when she first studied the stock or first purchased shares. It’s a very human form of mental anchoring. Joseph Steinberg, the founder of Leucadia National, has written that it’s difficult for him to buy a $10 hamburger because he remembers being a kid when it cost $0.10.

There are two logical ways to work through this mental block … Read the rest of this article!