A Timeline of Some of The Best Investment Books

“You don’t have to burn books to destroy a culture. Just get people to stop reading them.” Ray Bradbury Below is the list of all the books seen in the chart, as well as a few more that I just couldn’t fit. I’m sure I left a few out, but if you’re looking for some…

Coin Flippers Drenched in Alpha

Are the owners of great track records incredibly skilled, or incredibly lucky? This is one of the oldest questions in finance. To explore this further, I’m going to borrow from Scott Patterson and Jack Schwager, the authors of two fantastic books, The Quants and Market Wizards. Here is Gene Fama, Nobel Laureate, the father of…

10 Poor Investment Theses

Brattle St Capital is one of my favorite follows on Twitter. He’s constantly sharing interesting data, quotes and other valuable investing insights. The fact that he’s doing so anonymously, in which he receives no personal recognition, makes it that much more awesome.  Yesterday, he offered some lousy investment theses, learned through experience, which I wanted to…

The Fourth Factor

Fama and French wrote “The Cross-Section of Expected Stock Returns” in 1992, unveiling their three-factor model. They expanded on CAPM, which boils down stock returns to just one factor, beta. Fama and French took this a step further, finding that the vast majority of a stocks returns can be explained not just by beta, but…

Here’s Why Trading Stocks Is So Hard

The last few days and weeks are a great reminder of how difficult it is to successfully trade stocks. There’s a reason why there aren’t many traders that are household names. Even people in the business would likely find it difficult to rattle off ten legendary traders. One of those legends, Paul Tudor Jones had…

Dry Powder

At sub two percent on the ten-year treasury, many investors are questioning why bother owning bonds at all. As ninety percent of the returns are derived from the starting interest rate, it’s fair to assume that bonds will indeed offer measly returns going forward. While it’s not realistic to expect the returns of the last…

The Best of the Best

When the average person tries their hand at stock picking, they’ll go on the internet and check the price-to-earnings ratio. Maybe they’ll dig a little deeper and look at the some other statistics. They’ll check the institutional ownership, look at the competition, look at its historical valuation, growth rates, debt levels, etc. If you’ve played…

The Power of Defense

Good defense is more important than good offense not just on the football field, but on the investing field as well. Stocks experienced double-digit drawdowns in each of the last eleven decades, with the pain averaging -38%. Let’s take a look at some of the gains and losses to get a better feel of how…

The Growth of Alternative Indexes

Investors have become enamored with alternative ways to slice and dice the indices. According to Morningstar, “Strategic Beta” now accounts for 21% of total industry (ETP) assets, up from under 5% in 2000.  As assets have exploded, so too has the number of strategic-beta ETPs, which have grown from 673 to 844 in the past year,…

Annual Stock Market Returns

After a strong year for stocks, does it make sense for investors to dampen their expectations? That’s what many investors, professional or otherwise, were saying heading into 2014, following a year when stocks made new all-time highs and gained ~30 percent. Looking at the data shows that stocks have actually performed better than average following…