America and Its (Charitable) Foundations (Part 1)
The question before the house today is this: Why does America hate its charitable foundations? With apologies in advance for the length of this post, let’s look into the issue.
The question before the house today is this: Why does America hate its charitable foundations? With apologies in advance for the length of this post, let’s look into the issue.
In my last post I suggested that most investors over-manage their portfolios. In other words, the inability to remain patient and allow long-term strategies and quality managers to do their jobs is harming our returns. Those returns are damaged in the first place by the costs associated with frequent portfolio changes, especially transaction costs and taxes. But in addition, most changes tend to harm our long-term returns as we:
“All our misfortune arises from our inability to remain quietly in one room.”
Users of the Moneybags© app(1) will recall that slightly more than a year ago (post of 2/22/13) I examined the case for junk bonds,(2) to which Moneybags had a 10% opportunistic exposure.