Pragmatic Capitalism

Practical Views on Money, Finance & Life

‘Most Recent Stories’

21 Questions….


The good people over at Guru Focus did a nice Q&A covering 21 questions that you may or may not find interesting. It’s pretty short and painless so you won’t endure too much agony reading it if you choose to: How and why did you get started investing? What is your background? Like most people, I… Read More

Why I Prefer to Think of Stocks as Bonds


Bonds have always struck me as fairly simple instruments. In general, you know what a (high quality) bond’s return will be and you know what its time horizon is. That makes investing in fixed income instruments much simpler than investing in stocks. After all, the most difficult part about the stock market is that you… Read More

Make Berkshire Hathaway Great Again


Asset allocation is all about matching future expectations with your future needs. The problem with doing this is that our future needs are only loosely known and predicting the future of certain asset class returns is incredibly difficult. Still, there are some basic principles we can apply to this endeavor that increase our odds of… Read More

A Cheat Sheet for Understanding Monetary Realism


A few years back I started calling my economic views “Monetary Realism”. This was based on the popular paper I wrote called “Understanding the Modern Monetary System”. I wrote the paper to serve as an operating manual for the economy and when I recognized that many of its views were unique I realized that it was silly… Read More

Come to Stocktoberfest 2016


If you’re in the southern California area on the weekend of October 13-15 you should make your way down to one of the most beautiful parts of the world – Coronado for Stocktoberfest. Howard Lindzon and the StockTwits crew have arranged another great list of speakers and events for the weekend. I’ll be part of… Read More

3 Big Flaws in “The Market” Portfolio


I get a lot of emails about the Global Financial Asset Portfolio, which is the only true “passive index” of the world’s outstanding financial assets (you can see a basic depiction of it here using 4 Vanguard funds). This is a fine portfolio, but I always like to emphasize that the thing I find most interesting… Read More