A New Factor-Based Approach to Classifying and Measuring the Performance of SRI Mutual Funds
As I’ve written about before, the goal of sustainable, or socially responsible, investing (SRI) can be characterized as “doing well by doing good.” The implication of such double-bottom-line investing is that you are seeking not only profitable investments, but also investments...
Warren Buffett’s Advice Is Widely Respected, Seldom Followed
If investors were asked, “Who do you think is the greatest investor of our generation?” I’d bet an overwhelming majority would answer, “Warren Buffett.” If they were then asked, “Do you think you should follow his advice?” you might think...
Politics Can Sway Investing
It seems that in the upcoming presidential election, American voters will be faced with choosing between two candidates with the highest unfavorable ratings in history. It’s either that (at least if the parties’ national conventions go as expected), or a...
A New Four-Factor Investing Model
For about three decades, the working asset pricing model was the capital asset pricing model (CAPM), with beta—specifically market beta—being its sole factor. Then, in 1993, the Fama-French three-factor model—which added size and value—replaced the CAPM as the workhorse model....
All Fiduciaries Aren’t Created Equal
Robo-advisors have had a significant — and generally positive — impact on the financial services industry. The term typically refers to services that use models and algorithms to invest client portfolios, often in exchange-traded funds (ETFs). A benefit much touted...
The Paranoid Survive, but They Burn Out. Take a Break.
Perhaps you’ve heard the expression, “Only the paranoid survive.” Ring a bell? If so, it’s probably because that’s the title of a book by Andrew S.Grove, the former chairman and chief executive of Intel. When I read this book in late 1999, I...
New Angles on the Size Premium
Many investors and advisors who implement multifactor portfolios tend to focus on capturing the value premium over the size premium, often for the simple reason that, historically, the value premium has been larger. Others have even challenged the size premium’s...
The Three Biggest Investing Anomalies
There are many anomalies in investing. It wasn’t easy to isolate the three biggest ones, but here are my choices: You love Warren Buffett, but ignore his advice. Warren Buffett has rightfully been called “the greatest investor of his generation, or ever.”...
Finding Fulfilling Work: Live Out Your Calling as an Artisan
You likely feel as though you don’t have enough time to watch a video that is 17 minutes and 47 seconds, right? But what if watching it allows you to penetrate beneath the scar tissue of busyness and distraction and transform your...
A Life Full of Experiences May Not Mean Less Financial Security
A couple of weeks ago, I wrote a column about the growing tribe of people who value experiences over security in their lives. But there is something that I didn’t say then that I want to emphasize: You don’t necessarily have to...
