The Core of Wall Street Is Rotten
I remember feeling repulsed when I first read that Martin Shkreli, CEO of Turing Pharmaceuticals, raised the price of its proprietary drug, Daraprim, by 5,000 percent. This increase caused the price of each pill to go from $13.50 to $750....
Surprising Lessons About Investing From Donald Trump
I write about investing, not politics. By invoking Donald Trump as an example, please understand that I’m taking no political position. That said, there are some surprising lessons you can learn from Trump about investing. Here are two of them:...
Compelling Employees to Make Bad Choices
I don’t want to rehash all the reasons for my view that investors should avoid actively managed funds, expensive, complex investment products and “alternative investments” like hedge funds and private equity. If you find these investments suitable, you have every...
A Game You Shouldn’t Play
It seems like almost every week a new study appears to debunk the myth of active management. This week was no exception. Robin Powell, a U.K.-based journalist and financial blogger, discussed a recent study that covered 561 U.K.-based stock funds...
Buy This Annuity So I Can Take a Cruise
The current controversy over the proposal by the U.S. Department of Labor to impose a fiduciary standard on those who advise retirement plans has little to do with the rule’s merit. Rather, I believe it’s at issue because stockbrokers are...
Misleading “Debates” on Active vs. Passive Harm Investors
While it’s a low bar, Bloomberg TV always seemed to me to be the best of the financial media. Its anchors are professional and knowledgeable. Its coverage is broad and responsible. It avoids the hype and sensationalism typical of many...
Collapsing Arguments for Conflicted Advice
I had an interesting experience recently. I gave a talk to a group of investors. In the audience were a few brokers. My presentation consisted of two basic points: 1. Send an email to your broker or financial advisor and...
A Hidden Risk You Never Saw Coming
Ken Griffin is a hedge fund manager with an enviable net worth of $7 billion. According to published reports, he recently settled a contentious divorce dispute with his wife, Anne Dias Griffin, shortly before it was scheduled to go to...
Your ‘Wealth Advisor’ Probably Isn’t One
Last week, I wrote about an experience I had with a broker who took offense at the use of the term “broker” in a talk I gave to a group of investors. I found that odd because he is employed...
Hedge Fund Myths and Misdeeds
If anyone could demonstrate expertise in “beating the market,” you would think it would be hedge fund managers. They get paid hefty fees (often 2 percent of assets under management plus 20 percent of profits) to generate “alpha.” Successful hedge...
