Simple and Effective Investing

“It might be the simplest play in all of sports, and the most effective.  Give the ball to Michael Jordan, and everyone else get out of the way.” These two sentences began an Associated Press article on May 28, 1989.  The day prior, the Chicago Bulls had the ball in the closing seconds of a [...]

Best and Worst Questions to Ask a Financial Advisor

There should be natural skepticism when a financial advisor creates a list of the best and worst questions to ask a financial advisor.  It sounds a little like game show fixing of the 1950s where some contestants knew the questions before they were asked.  However, experience provides a unique advantage.  We have heard insightful questions and we have [...]

Amazon Prime and Mutual Fund Investing

There are an estimated 50 million Amazon Prime members in the United States which means that a household in this country is more likely to have an Amazon Prime membership than to have a dog.  It actually seems to be more challenging to find a Gen X or Millennial family who does not use Amazon [...]

Investing Scared

Most investors like the idea of waiting for a period of calm to invest.  Our brains tell us it is better to wait until there is clarity and risks have subsided before investing.  And our brains have good reason to work this way.  For our ancestors, waiting until things calmed down was necessary for survival.  [...]

Parallels of Sports Betting and Investing

The most interesting research project I worked on in graduate school was a study of statistical inefficiencies in sports gambling markets.  Our small team of students hypothesized on all kinds of possible anomalies in sports.  Was the over/under line inefficient when high scoring NBA or NFL teams were competing?  Were teams coming off a bye-week [...]

The Challenge of Individual Stocks

On a recent visit to the Museum of Modern Art (MoMA), I surprisingly stumbled upon an exhibit featuring classic video games such as Tetris, Asteroids, and Pac-Man.  The games were displayed on active video screens with an adjacent explanation of the creativeness or design elegance for why they were each chosen. In their heyday, these [...]

Relationship of Aging and the Low Return Investment Environment

At various points in life, individuals begin to avoid roller coasters, back flips off the high dive, cartwheels, and full contact football.  They take more frequent breaks in their weekly tennis game and aspire to completing a marathon rather than finish one in less than 3-hours.  Instead of travelling to Spain to run with the [...]

The Fallacies of Rising Interest Rates

Buckle up, America.  Higher interest rates are coming.  Forget that we have collectively observed this erroneous warning a dozen times or so over the past decade.  We also had 13 Triple Crown attempts since Affirmed in 1978 and consider what happened recently to that lengthy streak of failed expectations. For the first time since June 2006, [...]

Pros and Cons of Toddler Golf and Target Date Funds

There is a refreshing simplicity to the golf game of a toddler.  I appreciate this because my youngest son’s passion for golf is only superseded right now by that of chocolate chip cookies and his blanket.  He spends long stretches every day hitting a foam golf ball around the yard and occasionally we visit the [...]

The Lure of Investment Prediction

The following is an excerpt from the quarterly letter we recently sent to clients on the lure of investment prediction. Rock-paper-scissors ranks somewhere near the top of a list of universally known childhood games.  The game separates itself from games of pure chance like coin flipping or the card game war in that participants can gain an [...]