The Link Between Soccer and Investing

The following is an excerpt from the letter we wrote to clients this month.  It offers a useful lesson in the behavioral tendencies of humans. Many Americans tuned in to watch the World Cup during the past month.  Some even learned player names and now better understand the game’s subtleties.  From this experience, it likely became [...]

What Comes Next – The Investment Forecast Folly

We recently sent our quarterly letter to clients and the following is an excerpt that offers our thoughts on the merits of making an investment forecast for 2014, or any year, for that matter. The fact that both the economies and the stock markets of the developed nations performed so well last year might lead [...]

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Behavioral Investment Flaws and The Irrational Bias For Action

The following is an excerpt from the letter we wrote to clients in July 2013 and provides a worthy lesson in behavioral investment. Peter Bernstein in Against the Gods states that the evidence of investor behavior “reveals repeated patterns of irrationality, inconsistency, and incompetence in the ways [they] arrive at decisions and choices when faced with uncertainty.”  [...]

Evaluating Your Financial Advisor

When a new client was recently in the phase of interviewing our financial advisory business, he asked what one question he should ask that most prospects do not ask.  It was a great question.  I responded that most people do not ask in advance of establishing a relationship how the success or failure of the [...]

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Why Portfolio Income is the Wrong Metric

My recently turned 5-year old son began playing chess over a year ago and it has been instructive to see his approach to the game develop.  Immediately recognizing the importance of the queen, he developed a foundational strategy that revolved around that piece — establishing his own pieces to capture the opposition’s queen early in [...]

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