Live in Portland, Calgary, Kansas City, or Chicago? Holla!
Readers: We'll be visiting the following locations in the near future: 2/26 to 3/1: Portland/Calgary area Wes/Ryan/Brandon Wes is speaking at a small conference: Sign [...]
Compound Your Knowledge Episode 5: Size & Value
In today’s video, we examine two posts from last week. First, we examine Wes' post on the Size factor. Second, we examine a paper by [...]
Public Hedge Funds and Their Performance
Public Hedge Funds Lin Sun and Melvyn TeoJournal of Financial Economics, forthcomingA version of this paper can be found hereWant to read our summaries of academic [...]
Is There a Size Effect in the Stock Market?
One of the oldest and most persuasive arguments in the stock market is that small stocks outperform large stocks.[ref]A version of this showed up in [...]
Compound Your Knowledge Episode 4: Sentiment, Fin. Education & Smart Money Indicator
In today’s video, we examine three posts. First, we examine Elisabetta Basilico's post on Manager Sentiment and Stock Returns. Second, we examine a paper by [...]
How Risky are the Value and Size Premiums? Part 2/2 of Volatility Lessons
Volatility Lessons Eugene F. Fama and Kenneth R. French Financial Analysts Journal A version of this paper can be found here Want to read our summaries [...]
The Smart Money Indicator: A New Risk Management Tool
We have all heard the mantra, “You can’t time the market!” But in reality, investors attempt to do just that every day as part of [...]
Does Financial Education Actually Improve Outcomes? It’s Complicated.
The Causal Mechanism of Financial Education: Evidence from Mediation Analysis Fenella Carpena and Bilal ZiaA version of this paper can be found hereWant to read our [...]
Manager Sentiment and Stock Returns
Manager Sentiment and Stock Returns Fuwei Jiang, Joshua Lee, Xiumin Martin, Guofu Zhou Journal of Financial Economics, forthcoming A version of this paper can be [...]
DIY Asset Allocation Weights: February 2019
Do-It-Yourself tactical asset allocation weights for the Robust Asset Allocation Index are posted here.[ref] Create a free account here if you want to access the site directly. The [...]
Compound Your Knowledge: Episode 3–Factor Failure, China, EBITDA
In today's video, we examine three posts. First, we examine Larry Swedroe's rebuttal to the "failure" of factor investing. Second, we examine a paper examining [...]
Size and Value in China
Size and Value in China Jianan Liu, Rob Stambaugh, and Yu Yuan Journal of Financial Economics A version of this paper can be found here What [...]
EBITDA, EBITDA, EBITDA…that’s all, folks!
Value investing practitioners and academics have long studied the enterprise multiple effect, including my own business partners, Jack and Wes. The literature reveals that Enterprise [...]
“The Failure of Factor Investing was Predictable”
In a recent ETF column, Allan Roth listed five investment lessons. While I agreed with much of what he wrote, one claim—factor investing has “failed [...]
Compound Your Knowledge: Episode 2–ESOPs, Factors, Incentives
In today's video, we examine three posts. First, we examine ESOPs and 1042 QRP (qualified replacement property) with Doug Pugliese. Second, we examine a guest [...]
Value, Momentum & Carry Across Asset Classes
There is a 72% probability of the San Franciso Bay Area getting hit by at least one earthquake of a magnitude of 6.7 or stronger between [...]
1042 QRP: How to Finance a Seller Note
Employee Stock Ownership Plans (“ESOP”) create unique opportunities for business owners and their employee-participants to build wealth through their companies. To foster broader adoption of [...]
Rankings and Risk-Taking in the Finance Industry
Rankings and Risk-Taking in the Finance Industry Michael Kirchler, Florian Lindner, and Utz WeitzelThe Journal of Finance, Fall 2018A version of this paper can be [...]
Buyback Blackout Periods Do Not Negatively Impact Market Performance
The October 2018 market correction where the S&P 500® Index fell by 7%, its worst October since 2008,[ref]Bloomberg Finance L.P., as of 10/31/2018.[/ref] left investors [...]
Compound Your Knowledge: Episode 1
Welcome to the newly re-titled weekly video, Compound Your Knowledge. In today's video, we examine three posts. First, we examine a simple analysis of 2018 [...]