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In How Not to Invest , I showcase extreme examples of unforced errors to illustrate these behavioral mistakes. All costs impact your returns, but high or excessive fees have an enormous impact as they compound or, more accurately, lessen your portfolios compounding over time. In 2023, he tweeted a list of overlooked facts.
The challenge in writing How NOT to Invest was organizing a large number of ideas, many of which were only loosely connected, into something coherent, understandable, and, most importantly, readable. That insight greatly simplified my task of making the book both fun to read and helpful for anyone interested in investing.
Skew Why investors avoid positive-skew investment strategies. rcmalternatives.com) How skew and kurtosis should play a role in portfolio construction. noahpinion.blog) Asset growth High investment has historically led to disappointing future returns. morningstar.com) Research The 2025 Global Investment Yearbook is here.
Meb Faber, founder and chief investment officer of Cambria Investments, speaks about a new ETF that may be the solution to the challenge of concentrated equity positions. Full transcript below. ~~~ About this week’s guest: Meb Faber is co-Founder and CIO at Cambria Investment Management, as well as research firm Idea Farm.
What is the math for a 4-5% withdrawal rate? Part of adaptability is not making bad portfolio decisions like being too conservative with your portfolio. Do the math on your having just a 40% allocation which I would say is a little less than normal. million account can be a source of $70,000/yr for a very long time.
We dive into the numbers, examine the some of the portfolio stock selections, and offer guidance on what type of investor each strategy may suit best. Benjamin Graham – The Deep Value Purist Graham’s approach, considered the bedrock of value investing, focuses on balance sheet strength and low valuation. View the model portfolios.
The transcript from this week’s, MiB: Velina Peneva, Swiss Re Chief Investment Officer , is below. Eva is group Chief Investment Officer for insurance, giant Swiss Ray. Really a fascinating conversation with someone who is uniquely situated in the investment world. I took a lot of math classes. at Wellesley.
I can walk you through the math or simulate a few scenarios. To estimate the hypothetical performance of a 50/50 dollar-weighted portfolio of AMZN and AMZD over the past five years, we can combine their historical metrics and account for the compounding effects of AMZD’s daily inverse exposure.
In today’s dynamic economy, millions have embraced a diverse portfolio of income streamsfrom traditional employment to creative side hustles, equity compensation, and investment ventures. Self-employment tax calculations and considerations When examining the math behind self-employment taxes , the total 15.3%
S&P returns (including dividends) since 2019, graph by the excellent portfolio visualizer website. Which makes the landlord business a lot less profitable, and we should expect exactly the same thing as stock investor: lower future profits as a percentage of our portfolio value. Its just basic math. 4.3% – 5.3%
There was an article on LinkedIn (via Abnormal Returns) by Victor Haghani that dug into the math working against leveraged ETFs. In a 60/40 portfolio, a 30% weighting to SSO would in theory equal a 60% weight to equities, opening the door to some sort of of capital efficient portfolio even if that just meant sitting in cash.
A portfolio that goes narrower than an S&P 500 500 or total market fund probably has some exposure to low vol, dividends and the others. And checking in on the GraniteShares YieldBoost SPY ETF (YSPY) that sells put spreads on a levered S&P 500 ETF; Yes, that is a rough start, clearly, but interestingly the math checks out.
If you will pull an income from an investmentportfolio, what could go wrong? If that money is in an IRA, that is going to change your math considerably due to having to withdraw all of that inherited IRA within 10 years. Lousy longer term returns could be a problem as could some sort of mistake.
Baby products and child care Healthcare Education Technology Food and drinks, groceries Repairs Finance Legal Pets Cleaning Digital Marketing Beauty industry Funeral services Real estate investing 14 Recession-proof businesses to consider Based on the list of the above recession proof industries, let’s go over some actual business ideas.
Yet another extra special guest, Steve Lightly is global co-head of Bond ETFs and investment giant BlackRock. It’s sort of like math with dollar signs attached to it. And sometimes portfolios come into the office. He helps to oversee over a trillion dollars in bond ETFs. I really like it. Maybe give it a shot.
larrykotlikoff.substack.com) Investing Alina Fisch, "You can’t hedge a sure thing with a maybe." contessacapitaladvisors.com) The benefits of portfolio rebalancing has been oversold. humbledollar.com) Be careful when an adviser suggests borrowing against your portfolio. elmwealth.com) Every generation faces financial challenges.
If any of us had constructed this portfolio and implemented it for ourselves, it would have been a very acceptable result. The portfolio did just fine, it captured most of the upside and avoided the full brunt in 2022's large decline. One thing lacking from the "Endowment ETF Model Portfolio" is any hint of endowment-like results.
And I think you will also, if you are at all curious about estate planning or investing or personal finance, this is not the usual discussion and I think it’s very worthwhile for you to hear this and share it with friends and family. And I, I found it to be an absolutely fascinating conversation. That’s exactly right.
Similarly, when a Wall Street strategist, economist, or even a run-of-the-mill investment manager or analyst gets a crack at financial television, he or she is routinely asked, often as almost an afterthought, to give a specific target forecast for the market. It’s an expected part of the gig. Rogers, Jr., David Giroux, CIO of T.
Lisa Shallet, chief Investment Officer at Morgan Stanley has had a number of fascinating roles in Wall Street, which is kind of amusing considering she had no interest in working on Wall Street, and yet she was CEO and chairman at Sanford Bernstein. Because you were not just in the investing side, correct. As baby analysts.
My biggest client turned out to be the Merrill Lynch Investment Strategy Group. And so I just worked my way through Wall Street and, and eventually, you know, but if you had said to me when I graduated at Hamilton that I was gonna end up being the Chief Investment strategist at Merrill Lynch, I would’ve said, you’re crazy.
They max out a 401(k), skim through Social Security rules, maybe even dabble in stocks, but when retirement day approaches, they realize their savings, insurance, or investment mix just doesn’t add up. Outliving your savings Here’s the math: the earlier you retire, the longer your savings have to last. Not for a 25- or 30-year runway.
This sort of path provides purpose and relieves some of the burden off of the portfolio which can help with Christine's third question about flexibility. The less reliant a retirement plan is on an investmentportfolio, the less need there is for flexibility. Four percent is of course very reliable but not infallible.
As I read the FT article, I had a thought about how to try to make the fund work as part of diversified portfolio, not the entire portfolio. The way Portfolios 1 and 2 are weighted, the math works for being a 60/40 portfolio and then from there we add portable alpha/capital efficiency/return stacking.
Now, even if you adjust those future costs to present value (using a conservative 3% investment return), you’d still need nearly $395,000 in savings set aside today just to meet those expenses. That means even if your retirement portfolio is doing well, healthcare can still eat into your income faster than expected. to 2 times.
I had a friend that worked there, so I was a couple of years out of school in investor relations at Sunoco, and then I had a friend who said, you know, if you wanna get more into finance and investments, we have an opening at Vanguard. So I joined in the corporate division as an investment analyst. I think you’d really like it.
I wanna, I want to get into some of the details before we start talking about markets and investing. And so I was going to have to invest and save on my own account to accomplish that. And I discovered that when you’re writing about investing, one of the key subjects that you have to nail down is the history of finance.
Its not that weve never seen volatility before thats part and parcel of investing. Do you do any capex investments? The math is just Earnings * (Price / Earnings) = Price, since the Earnings parts cancel. Investment will likely lag amid uncertainty even if the trade war stops and tariffs go away, the threat remains.
New York Times Magazine ) • Wall Street Math Wizards Are Decoding Private-Market Returns : A small band of quants is shining a light into the shadowy world of unlisted assets. He is the portfolio manager of the Return Stacked ETF Suite, manging 800 million in ETF assets. But It Is Fighting Back. Try these 15 factors instead. (
Simple math, it looks like the carry index has compounded at less than 3%. If you use the fund in the manner that I think they intend, a blow up for the stocks and managed futures ETF would be a setback for a portfolio but not a catastrophe. The red line for T-bills is price only. And why do you think you need the leverage?
For more info, see: Professional website Bio Masters in Business At the Money: ( For better investing, manage your behavior ) ~~~ Find all of the previous At the Money episodes here , and in the MiB feed on Apple Podcasts , YouTube , Spotify , and Bloomberg. And so I realized I was going to have to invest and save for my own retirement.
The transcript from this weeks, MiB: Christine Phillpotts, Ariel Investments , is below. Christine Philpots of Aerial Investments has specialized in emerging markets and frontier markets. For most of her career, she has been around the world and if you name a hotspot investing place, she’s been there. Christine Philpots.
Sander Gerber : Well, actually I was good at math. In other words, people had these models that would give you one volatility exposure across the entire portfolio. How did it shape how you look at the world of investing? You had this validated by Harry Markowitz, the, the creator of Modern PortfolioPortfolio Theory.
(morningstar.com) Jack Forehand and Matt Zeigler talk with Michael Mauboussin about nine key, timeless investing lessons. youtube.com) Michael Batnick and Ben Carlson talk with Ted Seides author of "Private Equity Deals: Lessons in investing, dealmaking, and operations from private equity professionals."
In my day job, the biggest paradigm shift of my lifetime, by far, has been the move from active to passive investing. Such passive investing tracks the performance of an underlying index of securities, like the S&P 500. Some $16 trillion is now invested in index funds. Passive investing has won. There may be.
“I need the US Dollar to be a store of value between the time I make it until I spend it, invest it, pay my taxes with it, or give it away. To be more precise, I want to discuss the type of chart that reflects a fundamental misunderstanding of the nature of money, currency, spending, investing, and taxes. It does that splendidly.”
Top clicks this week How Morgan Housel invests his portfolio. aswathdamodaran.blogspot.com) How to make the math behind home ownership work (or not). etf.com) The hardest thing about being an investor is deciding what to focus on. behaviouralinvestment.com) Why selling a stock is harder than buying. morningstar.com)
Home ownership How to make the math behind home ownership work (or not). redfin.com) Investing Jeffrey K. humbledollar.com) Trying to make up for past investing mistakes by taking on more risk is dangerous. humbledollar.com) Trying to make up for past investing mistakes by taking on more risk is dangerous.
This week, we speak with Peter Borish, who is chairman and chief executive officer of Computer Trading Corporation, an investment and advisory firm. Borish was founding partner and right-hand man to Paul Tudor Jones at Tudor Investment Corporation , where he was director of research for 10 years.
Podcasts Barry Ritholtz talks with Liz Ann Sonders about how to rebalance your portfolio. wired.com) Investing We are our own worst enemies when it comes to investing. awealthofcommonsense.com) On the math of a 0% line of credit. apolloacademy.com) In praise of the Thumbtack app. abnormalreturns.com) FOMO is real.
Let’s delve into these to see if they apply to your own investing and trading: Instinct : Malcolm Gladwell’s Blink: The Power of Thinking Without Thinking , discusses the strengths and capabilities of the “ adaptive unconscious.” And, it has the advantage of leaving your actual investments alone.
Also in industry news this week: A recent survey indicates that financial advisors continue to move towards ETFs and away from mutual funds when it comes to client portfolio recommendations, though a majority of advisors continue to see a role for active management in the investment management process A former employee has filed a lawsuit alleging (..)
At the Money: Benefits of Quantitative Investing (March 20, 2024) Throughout history, investing has been a lot more “Art” than “Science.” But today, data is widely available and it’s a key tool you can use to enhance your portfolio returns. For most of the last century, investing was a lot more art than science.
This week, we speak with Jeffrey Sherman , deputy chief investment officer at DoubleLine Capital. We discuss how he began as a math major but didn’t want to go into physics, engineering or academia, so finance was the next logical career option. He is host of the podcast The Sherman Show and a CFA charter holder.
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