My newest research paper, Understanding Modern Portfolio Construction, is available on SSRN. This paper is the culmination of years of work and I consider it to be the most important piece of research I’ve published.
Vanguard has a timely reminder for investors – “cost is the new performance”.¹ We’ve entered a new era in the asset management business. The era of low fees. We now [ … ]
It’s that time of year when everyone starts preparing for the New Year and Wall Street makes its 2016 predictions. I’ll get right to the point here – these annual predictions [ … ]
The idea of risk is a rather confusing and nebulous concept in modern finance. The traditional textbook definition of “risk” is standard deviation or volatility. This is convenient for academic purposes because [ … ]
I am totally convinced that low fee indexing is the best way to allocate one’s savings (in fact, my entire company is based around this view). But when it comes to [ … ]
Earlier this year I spoke about the problem of “the long-term”. This is the tendency for modern finance to emphasize a long-term view due to the fact that assets tend [ … ]
John Bogle presented at this year’s Grant’s Spring Conference and made the argument for indexing as the way forward for investors. You can find his presentation slides here. Jim Grant [ … ]
I have some bad news for you. Someone, somewhere has a portfolio that is doing better than yours is. It might be Warren Buffett or your neighbor or your worst [ … ]
The recent attacks on Charles Schwab from Betterment and WealthFront seem to prove a disturbing reality – many advisors simply don’t know what “cash” in a portfolio really is and its necessarily positive aspects.