Alanis Morissette Ironic YouTube

The 4 Types of Irony You’ll Likely Encounter in Modern Life

Irony is one of those words you see misused all over the place.  Most people think they know what it means, but they don’t.  It’s irritating to those who care about the spirit of words, and has even prompted New York Times articles discussing the constant abuse the term endures at the hands of society.  To spot, and utilize, irony, requires, as the paper puts it, “sophisticated writing” that the author “counts on the reader to recognize”.  It takes skill.  It is going to go over most people’s head a lot of the time.

Dr Pepper Snapple Investment

An Example of Real World Value Investing Through the Lens of Dr. Pepper Snapple Group

One of the biggest dangers an investor faces when he or she decides to buy individual stocks for a portfolio is the temptation to chase something “exciting”, regardless of valuation.  That’s a foolish undertaking.  Valuation matters a great deal.  The exact same business might be a wonderful investment at 10 times earnings but a horrible investment at 50 times earnings.  It’s not enough for profits to rise, or dividends to expand; they have to offer a good return, based on what you paid, relative to a reasonable opportunity cost hurdle such as the long-term 30-year Treasury bond yield.