Investment Wisdom
Closet 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 More6 Common Myths about Stock Market Returns
How did you do with the 12 questions in the first article of this series? We have found that most investors have quite exaggerated views about long term stock market returns, mainly believing they are much more erratic than they are.
Read MoreCommon Myths about Stock Market Risk
How did you do with the 12 questions in stock market quiz? We have found that most investors have quite exaggerated views about stock market risks, especially after 2008.
Read MoreHow Risky is the Stock Market – How accurate are your perceptions? (Quiz)
“Half the lies they tell about me aren’t true.” – Yogi Berra We talk with people and read articles and books every day about investing, and are constantly shocked at how little most people know about the real risks and returns of the stock markets. The bear market of 2008 has only made the…
Read MoreIrrational Pessimism?
“It was impossible to get a conversation going; everybody was talking too much.” – Yogi Berra In 1996, Fed Chairman Alan Greenspan coined the term “irrational exuberance” to describe what he felt was unjustified speculation in the stock market as the S&P 500 rose past 744. Now, 12 years later, the S&P500 has moved past…
Read MoreHow to Take Advantage of the Market After the Crash of 2008
“It’s never happened in the World Series history – and it hasn’t happened since.” – Yogi Berra 2008 was a difficult year, producing results not seen in recent history. In past bear markets, some sectors and significant groups of investors still made money. In 2008 only 4 of 3,438 equity mutual funds showed a profit.…
Read MorePeak Oil or Oil Bubble?
“No one goes there anymore – it’s too crowded.” – Yogi Berra Tired of high gas prices? They have risen sharply because oil prices have shot up from $10/barrel in 1990 to $20/barrel in 2002 to $60/barrel in 2005 and now to $145/barrel in 2008. Is this just a temporary spike or just the…
Read MoreIs the Market Efficient? Understanding the Efficient Market Hypothesis (EMH)
Efficient Market Hypothesis
Read MoreIs “Management Integrity” an Oxymoron?
Warren Buffet said: “In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don’t have the first, the other two will kill you.” The story of Conrad Black, as told in the media, is of a very intelligent and energetic manager that used his skills to benefit…
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