Many follow a rule of thumb – no more than 5% in one stock. But that’s not the entrepreneurial road to riches. – Kenneth Fisher
If you are prepared for some risk, junk bonds pay about 5%, but they tend to get whacked when interest rates rise. Same with lower-yielding but higher-quality corporate bonds. – Kenneth Fisher
Both cheap value stocks and more glamorous growth stocks can work well in a portfolio – if done right. – Kenneth Fisher
Most investors give too much credence to the theory that prices are rational; they presume that a market collapse must have been justified by serious economic trouble. – Kenneth Fisher
China frequently confounds stock market prognosticators because it has a penchant for straying markedly from other broad global indexes year-by-year over the decades – even from emerging markets. It’s hit or miss. – Kenneth Fisher
Long before folks fretted the demise of ‘quantitative easing,’ I fretted its existence. It proved the reverse of its image, an antistimulus, and we’ve done okay not because of it, but despite it. – Kenneth Fisher
Readers regularly ask what can go wrong but almost never what could positively surprise. – Kenneth Fisher
Hundreds of investors ask me questions each year about the dilemmas they confront. Their worst problem? Uncertainty. They are traumatized and become emotional or confused to the state of inaction. Even worse, they try to solve a short-term problem in a way that hurts them financially in the long run. – Kenneth Fisher
The latter part of bull markets are typically led by stocks that are seen then as high quality, but the ones that do best are the ones that weren’t seen as such high quality before. – Kenneth Fisher
A constant in my approach to investing: You should think politically but unconventionally. – Kenneth Fisher
Generally, variations in earnings aren’t nearly as impactful on glamour growth stocks as are changes in image and, well, sexiness. I often think of glamour stocks as though they are attractive women dressing to the nines. – Kenneth Fisher
You may have seen my firm’s ads screaming, ‘I Hate Annuities.’ Folks ask why we run them. Simple: Because I do. – Kenneth Fisher
I can find only one bull market, in 1935, that didn’t have some material indigestion within its first 12 months. – Kenneth Fisher
Anyone can see how if a feared tax hike doesn’t happen, that’s a positive factor. But even if tax hikes happen as feared, vast history tells me it doesn’t have to have the big bad impact folks fear. And fear of a false factor is always bullish. – Kenneth Fisher
I’m sometimes accused of being hostile to mutual funds. That’s not fair, really. There is a place for them. Still, I am hostile to one thing, which is trying to use funds to time your way in and out of the market. That’s a recipe for very bad results. – Kenneth Fisher
Buying only what you know can end in disaster. Just think about Enron’s employees and business partners, the ‘locals’ who bought lots of its stock because they thought they were in the know. – Kenneth Fisher
Fracking opens up vast tracts of the U.S. to exploitation by gas drillers. There’s enough energy under our feet to last us for decades, maybe centuries. – Kenneth Fisher
To me ‘The Big Easy’ is shorthand for owning big stocks that are easy for wary investors to buy into. These stocks tend to outperform during the back half of bull markets. – Kenneth Fisher
Windmills and solar cells are carbon-free sources of electricity. But they are costly. If you’ve been investing in those, give it up. That game is effectively over. – Kenneth Fisher