Investing Systems Archives

Charlie Munger’s Best Advice on Investing in S&P 500 Index Funds

Charlie Munger, Investing, Investing Systems / Steve Burns

Charlie Munger spent decades building one of the greatest investment records in history alongside Warren Buffett at Berkshire Hathaway. He was a concentrated stock picker who believed in owning a small number of exceptional businesses and holding them for the long term. Yet despite his own approach, Munger consistently told ordinary investors to do something […]

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Benjamin Graham: Intelligent Investor Summary

Investing, Investing Systems, Investor / Steve Burns

Who was Warren Buffett’s investment mentor? Warren Buffett was not only in a class that Benjamin Graham taught at Columbia Business School, receiving an A+, but also worked for Mr. Graham after graduation. Buffett was so happy to get the job he didn’t know what he would be making until he got his first paycheck.

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Joel Greenblatt Magic Formula Investing

Investing, Investing Systems / Steve Burns

The “magic formula investing” system parameters and principles are used by Joel Greenblatt in his approach to value investing to outperform the market. In his book ‘The Little Book that Beats the Market’, Greenblatt writes that this system buys cheap stocks of 30 companies that have high earnings yield and also a high return on

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Portfolio Backtesting Explained

Investing, Investing Systems, Portfolio, position sizing / Steve Burns

Portfolio backtesting is the process of using historical price data to analyze and backtest the returns of a group of stocks, exchange traded funds, or mutual funds in the past. A complete portfolio backtest of your watchlist can visualize the risk of correlations, optimum percentage of capital exposures, drawdowns, and potential for diversification to hedge.

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What is a Follow-Through Day?

Investing, Investing Systems, Trading / Steve Burns

A follow-through day is a bullish signal created by William J. O’Neil to quantify a high probability change in a current stock market direction from a downtrend to starting a new up trend. Follow-through days signal during downtrends, corrections, and bear markets when a key stock market index closes much higher than the previous day’s

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Warren Buffett’s Favorite Investing System

Investing, Investing Systems, Warren Buffett / Steve Burns

Warren Buffett thought the management fees that hedge funds charged investors was ridiculous based on their historical returns in comparison to the markets. So Mr. Buffett set up a challenge for the hedge fund industry in 2008. One fund accepted his challenge, Protégé Partners LLC, and they made a million-dollar bet on who could produce

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What Is The Dogs Of The Dow Strategy?

Investing Systems / Steve Burns

The ‘Dogs of the Dow’ investment strategy first became popular when of Michael B. O’Higgins’s published the book, “Beating the Dow,” in 1991 where the phrase “Dogs of the Dow” was first used. The ‘Dogs of the Dow’ strategy is a very simple strategy based on the theory that a high dividend yield means a

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