Sept 15, 2012
Voice in the wilderness: identifying the real sources of long-term returns
In a world marked by high-frequency trading and billionaire fund managers, Jack Bogle ploughs an increasingly lonely furrow. He founded the mutually owned Vanguard group in 1974, with a remorseless focus on keeping costs down. Through its index funds, investors can own a diversified portfolio for a fee that is a fraction of a percentage point a year. ….Click here for the article.
International diversification really does work
Critics of international diversification argue that cross-border investing has done little to protect investors in a global downturn, and the critics have plenty of ammunition: In the recent global financial crisis, markets sank and rose in tandem, seeming to starve investors of the lower risk they had expected from international diversification. So, why bother to cross borders? ….Click here for the article.
Aug 13, 2012
Vanguard funds: three magic words
The recipe of investment success is to buy low, sell high and keep the cost down. Anyone’s portfolios needs strategy, and that strategy is to have the structure to remain focus. Vanguard’s funds structure is a key to keep the cost downs as the shareholders of the Vanguard Group are the shareholders of the funds. ….Click here for the article.
The greatest hits of investing
For more than a decade, I have had the privilege of hearing many colleagues discuss the fundamentals of investing in simple and effective ways. Everyone puts their own words and music to this set of ideas, but the following are what I consider the top ten greatest hits, with a few of my own verses added to the mix. …..Click here for the article.
June 9, 2012
Not so expert: the need for financial advice may be more psychological than practical
ASK enough people for advice, they say, and you will eventually find someone who will tell you what you want to hear. But the need for advice burns so strongly that people become blind to its quality. There is a remarkable tendency to trust experts, even when there is little evidence of their forecasting powers. ….Click here for the article.
Feb 9, 2012
Warren Buffet: why stocks beat gold and bonds
Today the world’s gold stock is about 170,000 metric tons. If all of this gold were melded together, it would form a cube of about 68 feet per side. (Picture it fitting comfortably within a baseball infield.) At $1,750 per ounce — gold’s price as I write this — its value would be about $9.6 trillion. Call this cube pile A. Let’s now create a pile B costing an equal amount. ….Click here for the article.
Oct 19, 2011
Don’t blink! The Hazards of Confidence
Many decades ago I spent what seemed like a great deal of time under a scorching sun, watching groups of sweaty soldiers as they solved a problem. I was doing my national service in the Israeli Army at the time. ….Click here for the article.
May 16, 2011
Home made dividends
Many investors only spend what they receive in dividends and interest. While this approach may encourage disciplined spending, Ken French explains that it also can distort one’s investment approach–for example, when investors choose dividend-paying stock. …..Click here for the article.
April 3, 2011
Fund industry ‘overpaid by $1,300bn’
The “overpaid” fund management industry is destroying $1,300bn of value annually, according to an unpublished draft report conducted by IBM. The document, seen by FTfm, claims the industry is “paid too much for the value it delivers” and that “destroying value for clients and shareholders is unsustainable”. ….Click here for the article.