Moneyball and Investing “Bill James revolutionized the way we think about the game of baseball by assessing which factors are the most significant in determining the impact a player has on the outcome of a game.” –Larry Swedroe 10-19-2020 That’s right, Larry. James’ research found that a players on-base percentage and slugging average are more …
Hero or Villain? “Is he a hero or a villain?” –Michael Knowles 10-12-2020 Knowles asks this question about Christopher Columbus. Check out his 5 minute video where he tries to put some historical perspective around this question. Celebrating Columbus
Don’t Gamble On Unexpected Returns “The expected value of the unexpected returns must be zero.” –Kenneth French,PhD 10-05-2020 Kenneth French is a very smart man. His research, along with Eugene Fama’s, is the basis for how we construct our portfolios here at Verity Capital. Check out the recent article he did for Dimensional Fund Advisors: …
Managing the Unmanageable “We need to unlearn what we think we already know.” –Jonathan Clements 09-21-2020 The truth of the matter is that we humans are not wired for investment success. Our brains are hard wired for short-term survival needs. Unfortunately, these short-term needs usually run contrary to what it takes to be a successful …
Divorced From Reality? “In some sense, the stock market has always been “divorced from reality” since its job is not to report today’s temperature but what investors think it will be next year and the year after that and the year after that and so on.” –Weston Wellington, V.P, Dimensional Fund Advisors 09-14-2020 What’s going …
Lessons From Buffett “Buffett’s legacy isn’t limited to his investing prowess – he also has an uncanny knack for educating investors.” –Barbara Cisner Bayer 09-08-2020 I always enjoyed Warren Buffett’s folksy and down to earth way of explaining things. Here are four lessons from Buffett that should help investors of all ages. Warren Buffett’s 4 …
Presidential Elections and the Market “Do I see a pattern? I see no pattern.” –Mark Gochnour, Dimensional Fund Advisors 08-31-2020 Who do you thing is going to win the presidential election? What do you think the markets will do if Biden wins?….or if Trump gets re-elected? These are the questions that I’m getting asked most …
Persistence of Outperformance Is a Myth “If I were a betting man, I would have a higher chance of getting three consecutive heads on a flip of a coin. My chances of success would be higher compared to the chances of me picking a fund that persists its performance for three consecutive years over its …
FAANG Stocks Outperformance “FAANG Stocks- Facebook, Amazon, Apple, Netflix and Google” –term coined by Jim Cramer in 2013 08-17-2020 Want to know how the stock market is doing in 2020? This chart from Goldman Sachs pretty much sums it up. The S&P 500 is up about 2% year-to-date. As you can see, the fact that …
See The Truth With Your Own Eyes “These ideas (socialism) have devastating consequences wherever they’re tried and the same would be true in our country just as it was in Cuba. It’s never been more important for Americans to see the truth with their own eyes.” –Charlie Kirk, TPUSA founder 08-10-2020 In my humble opinion, …