Trisha Eisele, Sharelle Fleming, Pauline Paul, Julie Pollock, Joshua Sawdey
QRB/501
September 16, 2013
Kumer Das
Week Six News Article Summaries
Post Lehman Brothers Stock Market Crash Discussion In 2006, Brothers David and Tom Gardner started a community database to help consumers choose stocks. Developing the concept of longer-term investments over extended periods, versus the forecast method based on timing and risk. Motley Fool, the name chosen for the firm, asked staff to interview the firm’s top 18 investors to discuss lessons learned from the demise of Lehman’s Brother Stock at the five-year anniversary mark. Seth Jayson has learned to invest a little bit each month into the best companies and has stopped looking for quick fixes. Morgan Housel, discusses his lessons: cash= options, and debt= loss of options. Another point is to consider purchasing more when the stock crashes and to view risk as a gift. The forecast profession is deceptive, and to recognize that the market has recovered in four years. David Gardner predicted the fall of Lehman Brothers six months prior to the fall, which reinforced his methods of helping investors, succeed in the market. LouAnn Lofton recommends separating emotion form investing, to think long term and purchase stocks at lower rates during the crash. Alyce Lomax indicates her fears that people have not learned from the crash and that history has a habit of repeating itself. Alex Dumortier, who is CFA, explains his perspective of considering the unimaginable as possible and to prepare for uncertain measures. Jim Mueller recommends his tool for success has been to keep a journal. Stating his process is to analyze motivations and trends before choosing to purchase stock. Charley Travers firmly reinforces investing in companies with cash rich balance sheets and strong free cash flows. Matt DiLallo took a time out from the market post-crash and looked for