Borrowing to Invest Wisdom
The Quest To Find All Star Fund Managers
Why do you invest with “All Star Fund Managers”?When you’re planning for your future, you need to have a sound investment strategy that gives you confidence that you will eventually have the retirement you want. The best way to understand this is with a hockey analogy.
Read MoreIdentifying All Star Fund Managers II – Finding the All Stars
“Ignorance more frequently begets confidence than does knowledge.” –Charles Darwin In the last article, we looked at the first step in identifying All Star Fund Managers – getting rid of the bottom 90% of fund managers/investors. This article is about the final 3 steps in the process that take us from the top 10% to…
Read MoreIdentifying All Star Fund Managers I – Cross off the Bottom 90%
All Star Fund Managers
Read MoreCloset Indexers vs. Stock Pickers – Truly Active Managers Outperform
In the last article, we introduced the concept of “Active Share” – the degree to which the holdings in a fund differ from the index – based on a study by 2 Yale academics. Here are some of the other valuable insights from the study.
Read MoreTruly Active Managers Outperform – Being Different is Key
The popular opinion among investors supported by many studies claims that most fund managers underperform their index, so you are better off just investing in an index fund or ETF (Exchange Traded Fund). However, truly “active” fund managers have significantly outperformed their indexes after all fees over the long term, based on a very comprehensive…
Read MoreEd Rempel’s Picks for The Best Smith Manoeuvre Mortgage
“It was impossible to get a conversation going; everybody was talking too much.” – Yogi Berra The Smith Manoeuvre is a simple concept, but fairly technical to set up. It is easy to do, but also easy to mess up. The first step is to get the right mortgage, which is why one of the…
Read MoreMyths about Leveraging into Equities – Part 2
What are the risks of borrowing to invest? Let’s assume the total risk is a combination of the 3 main financial risks – the risk of losing money, the risk of emotional stress, and the shortfall risk of not having enough money to meet your long term goals (e.g. retirement). The first 2 are generally…
Read MoreMyths about Leveraging into Equities – Part 1
For this post, I am borrowing heavily from Talbot Stevens, whose writing about leverage was inspirational to me since the early 1990s. I’ve always been fascinated by commonly held beliefs that just aren’t true. When you talk about leveraging into equities, there are many. Here are the most common myths:
Read More