Stock markets are the greatest compounders of wealth the world has ever seen. Sadly, most introductory investment courses and literature do not begin with an explanation as to why markets go up. It’s such a fundamental question, but it is often overlooked.
Read MoreInvestors always want to know what’s cheap—cheap relative to the opportunity set and relative to history.So it’s always interesting to take a look at the global landscape to see which markets are trading at attractive prices.
Read MoreCoaches teach us the fundamentals of some activity. If there was an “ideal” investment coach, what fundamentals would she focus on? This is my current take.
Read MoreThere is some popular marketing spin going around that indexing—constructing portfolios based on market-cap weights—is effective because it allows an investor to own more of companies that have been successful and appreciated, while moving away from losers that have been unsuccessful and declined This sounds logical, but it is empirically wrong.
Read MoreWhat are the levers that managers can pull to drive return for any investment strategy? This piece boils it down to consistency, magnitude, and conviction, and finds that even the best managers have done a poor job at portfolio construction. Most would be better off equal-weighting their own portfolios.
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