The Simple Reason Why Warren Buffett Is Successful

Test your investor savvy on this week's Stock Quiz! How much do you know about Bank of America, Wells Fargo, JPMorgan and Berkshire Hathaway?

Apr 13, 2014 at 11:27AM

On this week's Stock Quiz from Monday's edition of Where the Money Is, Motley Fool financial analysts David Hanson and Tyler Riggs do their worst to stump each other with tricky quiz questions from across the financial sector.

Among the questions are whether Bank of America (NYSE:BAC) or Wells Fargo (NYSE:WFC) bought back more stock when prices were at their peak in 2007. David and Tyler point out that while Wells Fargo weathered the financial crisis and manage to provide a decent return to shareholders, the bank hasn't been the best capital allocator. The guys also discuss which bank has the largest percentage of demand deposits between Bank of America, JPMorgan Chase (NYSE:JPM) and Wells Fargo.

Finally, the two examine just how much Warren Buffett grew Berkshire Hathaway's (NYSE:BRK-A)(NYSE:BRK-B) book value in the 10-year period following 1999, as the S&P 500 dropped by 9% over the same period.

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David Hanson owns shares of Berkshire Hathaway and JPMorgan Chase. Tyler Riggs owns shares of Wells Fargo. The Motley Fool recommends Bank of America, Berkshire Hathaway, and Wells Fargo. The Motley Fool owns shares of Bank of America, Berkshire Hathaway, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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