Psychoanalyzing “Mr. Market”   Recently updated !

During stock market corrections like this, I like to go back and read Ben Graham’s allegory of “Mr. Market.”  I believe it to be the single most important concept in investing.  Rereading the below passage from Warren Buffett’s 1987 shareholder letter always helps me keep a cool head when the […]

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Interest Rates and Oil

By the time you receive this month’s Investment Comments, you have probably learned there is finally a new chapter in the multiyear drama over interest rates.  The Federal Reserve last raised rates in 2006, cutting them down to zero in 2008 at the height of the financial crisis.  Rates have […]


December Investment Comments

After a volatile summer, better recent economic data has helped the market bounce back from its August correction.  Year-to-date the S&P 500 is now in positive territory, rising 2.7% through October.  Why has the market been so soft this year?  One simple word: earnings. With 93% of S&P 500 companies […]

Simple, but not Easy

Investing is “simple, but not easy.” That describes much of our work here at Provident. We spend our days looking for great companies trading at fair prices. Then we watch our clients’ stocks go up as the underlying earnings increase. What could be simpler? Inevitably, some things don’t go as […]

Financial Bubbles

It hasn’t been much fun lately to be an investor.  The S&P 500 hadn’t seen a 10% drop, a so called “market correction,” since 2011.  However, all that changed recently as the index hit a low of 1,867.61 on August 25th, down 12.4% since the record high of 2,130.82 achieved […]