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Ritholtz Wealth

@RitholtzWealth

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Insights from the whole gang. Ritholtz Wealth Management is a registered investment advisor providing financial planning, advice and portfolio management.

NYC
Joined June 2014
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@RitholtzWealth
Ritholtz Wealth
1 day
Ritholtz Wealth Co-Founder, Chairman & Chief Investment Officer @Ritholtz joined @awealthofcs and @duncanhillphoto on the latest episode of Ask The Compound! check it out on YT and podcast platforms👇🆕🔥 ▶️ 🎙️
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Today in market history, 2002: Netflix raises $82.5 million in its initial public offering, with a total valuation of $300 million. Blockbuster Video had raked in about $800 million in late fees that same year. Netflix goes on to gain 15,000%, Blockbuster goes extinct.
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Facts. via @ATeachMoment
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Today in market history, 2008: Presidential candidates Barack Obama and John McCain agreed to suspend all campaign ads to commemorate the 7th anniversary of 9/11. They toured Ground Zero side by side and laid roses on the reflecting pool.
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Ritholtz Wealth Management salutes @A_kamara6 Well done sir.
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Today in market history, 1975: With only three people employed in the company, The Vanguard Group begins operations. Today, Vanguard manages $5.1 trillion.
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"What the human being is best at doing is interpreting all new information so that their prior conclusions remain intact” - Warren Buffett
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“Nothing obscures your financial judgment on investments more than the sight of your neighbor getting rich.” - J.P. Morgan
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Today in market history, 1994: Amazon is founded in Bellevue, Washington. It will go public three years later, raising $54 million.
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Another option would have been setting up a 529 plan. But this is cool too.
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Us Weekly
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Exclusive #BlackInkCrew sneak peek: DMX celebrates his 15th child by getting his son's name tattooed on his neck!
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The retirement pyramid, by @ATeachMoment
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“Investment philosophy is really about temperament, not raw intellect. In fact, proper temperament will beat high IQ all day.” – Mauboussin
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Today in market history, 1995: The Netscape IPO kicks off the Internet Era, led by 24 year old @pmarca . Prices at $28 per share, explodes to $74 intraday.
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“One lesson from 2008 is that if it’s very complicated and you don’t understand it, maybe you shouldn’t buy it.” – Harry Markowitz
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"It's a proprietary strategy. I can't go into it in great detail." - Bernard L. Madoff
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"What the human being is best at doing is interpreting all new information so that their prior conclusions remain intact” - Warren Buffett
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Today in market history, 1997: Apple finalizes $400 million deal to bring Steve Jobs back with an acquisition of his new company. Total return for $AAPL until his death: 9210%
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Today in market history, 1923: The book "Reminiscences of a Stock Operator" is published. It was written by Edwin Lefevre based on interviews with the greatest speculator who ever lived, Jesse Livermore.
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Today in market history, 1924: Charlie Munger is born in Omaha, Nebraska. Munger would meet Warren Buffett at age 31. The duo would, through their operation of Berkshire Hathaway, become the greatest investors in history. source:
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Today in market history, 2005: For the 6th straight meeting, Alan Greenspan's Federal Reserve hikes overnight rates by 25 bps to 2.50%. The Maestro would keep going until every homeowner in America was underwater and half the investment banks on Wall Street disappeared.
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This day in market history, 2001: The first Apple iPod launches. Apple would go on to become the world's most valuable company by market cap. image:
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Today in market history, 1962: Warren Buffett buys his first 2,000 shares of Berkshire Hathaway for $7.50 a share. He did okay.
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Today in market history, 1889: Happy birthday to @WSJ - first published today 129 years ago. Charles Dow’s four-page edition cost two cents per copy, or 51 cents in today’s money.
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Today in market history, 1969: Ed Thorpe's Convertible Hedge Associates, later renamed Princeton/Newport Partners opens for business. He crushes the market mercilessly for the next two decades with pure mathematics.
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How @SHAQ chose his financial advisor: Tax planning Don't sleep on that!
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Today in market history, 1976: Fired mutual fund manager Jack Bogle launches the first S&P 500 index fund. It starts with just $11 million in assets.
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The judges on Shark Tank were offered a 10% stake in (smart doorbells) for $700,000 - valuing the company at $7 million at the end of 2013. They passed. Amazon just bought the business for $1 billion this week. @awealthofcs
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Daniel Kahneman on Intuition "The guy won a Nobel Prize for his work on behavioral psychology and basically created the field as we know it today and he still doesn’t believe it’s helped him overcome his built-in biases." by @awealthofcs
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Today in market history, 2001: President Bush signs a $1.3 trillion tax cut. Wage growth remains stagnant for the next eleven years and the stock market suffers a lost decade with no returns.
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Occam’s Razor on Interest Rates and the Stock Market "The fact that investors no longer have a safe haven where they can earn decent rates of interest will have many unintended consequences." by @awealthofcs
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Comfortably Numb About Inflation "A 2% annual inflation increase destroys almost 50% in real purchasing power after 30 years. A $50,000 in a conservative stock/bond mixture will almost triple with a 3% real return over the same period." by @ATeachMoment
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"Long-term investors must be careful not to learn too much from recent experience." - Ben Graham
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“If you can get good at destroying your own wrong ideas, that is a great gift.” – Charlie Munger
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This is Normal "A double-digit drawdown happens more than two-thirds of all years since 1928." by @awealthofcs
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Today in market history, 2013: The Associated Press Twitter account is hacked at 1:07PM and tweets that there was an explosion at the White House. The stock market loses $136 billion in 3 minutes.
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How the Stock Market Works "The longer you play in a casino, the greater the odds you’ll walk away a loser because the house wins based on pure probability. It’s just the opposite in the stock market." by @awealthofcs
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"A bank is a place that will lend you money if you can prove that you don't need it." - Bob Hope
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On this day in market history, 1929: Yale economist Irving Fisher said "stock prices have reached what looks like a permanently high plateau." After the crash 9 days later, investors would have to wait until the mid-1950's to see the stock market reach that plateau again.
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Worth revisiting every six months, like clockwork....
@MarketWatch
MarketWatch
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Just a friendly reminder today... via @ATeachMoment @RitholtzWealth
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Today in market history, 2007: Wachovia acquires A.G. Edwards for $6.8 billion. Combined, they will manage $1.1 trillion in client assets. Within 18 months, Wachovia loses $100 billion in market cap, Wells Fargo buys the whole thing for $15 billion.
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Today in market history, 1991: Tim Berners-Lee posts the first ever web page to the Internet. He uses a NeXT computer at CERN. Berners-Lee's page explains what the web is and how to make more content for it.
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“You cannot manage outcomes, you can only manage risks.” – Peter Bernstein
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Today in market history, 1974: Richard M. Nixon becomes the first US President in history to resign the office after two years of claiming "witch hunt". The Dow Jones falls 1% the next day, 15% over the next month.
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It’s OK to Be Bearish But It’s Not OK to Stay Bearish "Successful long-term investing comes from letting go of the desire to pretend like you know what’s going to happen all of the time." by @awealthofcs
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Today in market history, 1985: Microsoft released Windows 1.
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How to Outperform "Indexing doesn’t provide you median returns. Over longer time frames, it almost guarantees you’ll end up in the top quartile or decile of performance." by @awealthofcs
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Today in market history, 2008: Lehman Brothers declares bankruptcy. At $639 billion, it's the largest in the history of the United States.
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"If you spend more than 13 minutes analyzing economic and market forecasts, you've wasted 10 minutes.” - Peter Lynch
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Today in market history, 1906: the Dow peaked at 103. The Panic of 1907 would send it crashing down by 48.5%.
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Crisis Du Jour "Investing is not easy, and returns elude those who trade on emotions. As [the media] try to scare you tonight about the market doom and gloom, remember that these knocks are par for the course for investors." by @BlairHduQuesnay
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"The reading of all good books is like conversation with the finest minds of past centuries.” - Rene Descartes
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💜Happy Valentine’s Day💜
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“It’s not the things you buy and sell that make you money; it’s the things you hold.” - Howard Marks
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TREASON?
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Today in market history, 1776: The United States takes out its first loan ever - $5 million at 4% interest to finance the Revolution.
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The financial crisis in one sentence: Good things happened to bad people, and bad things happened to good people. Executives who contributed to the crisis retain enormous wealth, while those who trusted them suffered life-altering losses. - @jasonzweigwsj
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On the Inevitability of Bear Markets "I’ve read enough market history to understand that we humans always take things too far. We can’t help ourselves." by @awealthofcs
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“One half of your return is determined by your investments, the other half by what kind of person you are.” - John Bogle
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"An investor who has all the answers doesn’t even understand the questions.” - Sir John Templeton
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"The quality of life in the 21st century is light years beyond what people experienced in the 19th century, but people compare themselves with their neighbors, not with their ancestors.” - @michaelbatnick
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This Version of Warren Buffett "If 2015 was the Warren Buffett legend at the peak of its power and influence, what we saw this weekend is a reminder that five more years have gone by and everyone’s gotten half a decade older." by @ReformedBroker
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Today in Market History, 1974: The House of Representatives charges President Richard Nixon with the first of three articles of impeachment.
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Today in market history, 1923: Reminiscences of a Stock Operator was published.
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Today in market history, 2008: Lehman Brothers drops a bomb with its Q3 earnings report - a loss of $3.9 billion and plans for a massive fire sale of assets, including its 55% stake in Neuberger Berman. The stock, now $7, had been crushed 52% during the prior two days.
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20 Lessons From 20 Years of Managing Money "The best portfolio is the one you can stick with come hell or high water, not the one that’s the most optimized for silly formulas or spreadsheets." by @awealthofcs
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“When you’re 94, tennis fades, and so does sex, but there’s still the market.” - Roy Neuberger
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"Wealth is not about having a lot of money. It's about having a lot of options." - Chris Rock
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"Long-term investors must be careful not to learn too much from recent experience." - Ben Graham
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"We have two classes of forecasters: Those who don’t know, and those who don’t know they don’t know.” - John Kenneth Galbraith
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Barry: “Reading the pundits, I cannot tell which fate awaits us: the robot-driven apocalypse where we are all out of work, or the inevitable spike in wages that sends rates much higher and kills the market.”
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"Men, it has been well said, think in herds...go mad in herds, while they only recover their senses slowly, and one by one" -Charles Mackay
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9 Underrated Investing Books "When everyone reads the same exact investment books about being a contrarian it seems to become more difficult to be an actual contrarian anymore." by @awealthofcs
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How Long Does it Take to Make Your Money Back After a Bear Market? "The question is not only how bad can it get but how long will it take to make our money back?" by @awealthofcs
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WHO DID THIS? #noobwhale
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A History of Bear Market Bottoms "There are no rules for how the market bottoms. Stocks go down a lot, and then they keep going down more until they stop going down, and then they go up, sometimes a little and other times a lot." by @michaelbatnick
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On MIB, @ritholtz talks with Robert Cialdini, Professor Emeritus of Psychology and Marketing at Arizona State University and author of the classic "Influence: The Psychology of Persuasion" and "Pre-Suasion: A Revolutionary Way to Influence and Persuade."
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Statistician, a person who lays with his head in a oven and his feet in deep freeze, stating "On average, I feel comfortable” Bruce Grossman
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How to Use Behavioral Finance in Asset Management, Part I "How can a practitioner take what we know about the ways cognitive errors impacts investors, and use these to design the fundamental building blocks of a wealth management firm?" by @ritholtz
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Easy Money is Money Easily Lost "We’re all human. It’s understandable that people get caught up with the herd mentality when markets are rocking and it seems like everyone else is making money hand over fist." by @awealthofcs
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Today in market history, 1962: Warren Buffett buys his first 2,000 shares of Berkshire Hathaway for $7.50 a share. He did okay.
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“The reason that 'guru' is such a popular word is because 'charlatan' is so hard to spell.” - William Bernstein
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Timing the Market "The more you pay for an investment, the less you should receive, on average. But the idea that you can use valuations as a way to time the market is probably not going to work for most people, most of the time." by @michaelbatnick
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Debunking the Silly “Passive is a Bubble” Myth "Isn’t it a good thing most small investors have decided they can’t compete with the professional active managers who trade with one another?" by @awealthofcs
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The 11th Commandment "Most of the time, stocks went up, but there were times they went down. The stock market goes up and down regardless of which party is in office." by @awealthofcs
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Today in market history, 1924: Charlie Munger is born in Omaha. He met Warren Buffett at age 31. The duo go onto become arguably the greatest investors in history. image:
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Today in market history, 1976: Fired fund manager Jack Bogle launches the first S&P 500 index fund. It had just $11 million in assets.
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“The key to risk management is never putting yourself in a position where you cannot live to fight another day.” - Dick Fuld, Lehman Bros
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Who Benefits From a Market Correction? "Young people should get on their hands and knees to pray for a crash so they can buy stocks at lower prices, higher dividend yields, and lower valuations. " image: by @awealthofcs
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“Statistician, a person who lays with his head in a oven and his feet in a deep freeze stating, on the avg, I feel comfortable” -B Grossman
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"Security is mostly superstition. It does not exist in nature, nor do the children of men as a whole experience it. Avoiding danger is no safer in the long run than outright exposure. The fearful are caught as often as the bold." - Helen Keller
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I believe that economists put decimal points in their forecasts to show they have a sense of humor. - William Gilmore Simms
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8 years
When the stock market is falling but you remember that you're diversified.
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Fine. Also, NO investments in the ventures of friends, no power of attorney to the business manager.
@DDuggan21
Dan Duggan
6 years
Saquon Barkley said he plans to invest his salary and live off his endorsements. Bought his parents a house this week before even signing his contract.
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Today's Poll: This is the biggest fashion faux pas in finance:
Blue shirt, white collar
338
T-shirt under a blazer
255
Boat shoes without socks
182
Bull & bear cufflinks
199
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"You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets.” - Peter Lynch
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Explaining the 2020 Stock Market "Understanding the U.S. stock market in 2020 is fairly easy — the bigger, more expensive companies are performing better than the smaller less expensive companies. That’s it." by @awealthofcs
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“When people in the investment business start saying ‘never’, that’s when you know it’s about to happen.” - Jeff Gundlach
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