The Evidence-Based Investor

No sales agenda. No marketing spin. Just the evidence.

The mathematics of normal distribution (Video 1 of 3)

Posted by Robin Powell on June 19, 2018

I’m very pleased to announce the launch of my latest documentary. It comes in three parts and explains the mathematics behind one of the most important concepts in investing, namely normal distribution. I’m going to be writing more about this subject over the next couple of weeks. But for now I’d just like thank my […]

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Does the conjunction fallacy explain our preference for active funds?

Posted by Robin Powell on June 14, 2018

It’s a question I ask myself all the time: Why do most investors and even financial advisers continue to favour actively managed funds in the face of overwhelming evidence that passive funds deliver better outcomes? A new paper entitled How Active Management Survives suggests it may be down to something called the conjunction fallacy. In […]

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We mustn’t let Brexit mess with transparency

Posted by Robin Powell on June 12, 2018

With the countdown ticking on Britain’s exit from the European Union, huge attention is being given to what it all means for the City of London. This, of course, is only right. The City is a huge contributor to the Exchequer, and it employs a great many people. Whatever deal is agreed regarding the City […]

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How good are Vanguard’s active funds?

Posted by Robin Powell on June 11, 2018

Investors, and indeed financial professionals and commentators, are often confused by the fact that Vanguard provides actively managed funds. I must admit, as one of Vanguard’s biggest fans, that it slightly puzzles me too. Vanguard is, of course, virtually synonymous with passive investing. It was Vanguard’s founder, Jack Bogle, who launched the first index fund […]

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