Investment 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 MoreFear of a False Factor is Favourable – II (Long Answer)
Fear of a False Factor is Favourable
Read MoreFear of a False Factor is Favourable – I (Short Answer)
fear of a false factor is favourable
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 MoreHave You Forgotten That Stock Markets Go Up?
“The masses are always wrong.” – Ayn Rand Have you noticed that nearly every investor is investing defensively these days? Many investors have lost faith in the long term growth of the stock market. This is not surprising after the big crash in 2008. It has made investors more aware of risk. It can be…
Read MoreWhy the Long Term Growth of the Economy is Not Relevant to Investing
Our last article explained why the economy is not relevant to investing – short term. If you want to forecast the stock market this year or next year, the economy is essentially irrelevant – because the stock market forecasts the economy, not the other way around.
Read MoreWhy the Economy is Not Relevant to Investing
“I’ve always said if you spend 13 minutes a year on economics, you’ve wasted 10 minutes.” – Peter Lynch Many investors believe there is some sort of cause-and-effect between the stock market and the economy. They think that if they can predict the general direction of the economy, it will help them predict the…
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…
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