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Introducing our new portfolio review service for professionals
The vast majority of pensions funds, charities, endowments and other institutional portfolios have underperformed the market for decades. The way to stop the rot is to have an independent portfolio review, reduce fees and complexity, and increase diversification. From today, that’s precisely what TEBI is offering. As anyone who’s read The...
What we mean by sunk costs
It’s time for the second part of this new series in which we explain financial concepts that people often struggle with by way of a visual metaphor. So, what do we mean by sunk cost? How many times have you made...
How much is your time worth?
By CAROLYN GOWEN “The supply of time is totally inelastic. No matter how high the demand, the supply will not go up. There is no price for it and no marginal utility curve for it. Moreover, time is totally perishable and...
Be prepared for any weather
In the previous parts of our Investing Fundamentals series, we’ve asked how much risk investors should take, and looked into the predictability (and otherwise) of stock price movements. In this third part, we look at how diversification can prepare investors for whatever...
Persistent outperformance remains very elusive
By LARRY SWEDROE Persistence of performance is an important issue for those who believe that active management is the winning strategy. The reason is that if persistence is not significantly greater than should be expected at random, it’s extremely difficult for...
How to rid yourself of debt
By JASON BUTLER Rihanna is a successful 31-year-old singer, actress and fashion designer. Despite having earned a significant amount of money, by 2010 she was $9million in debt and on the brink of bankruptcy. Rihanna then sued her accountant, Peter Gounis,...
Beware the flat earthers of financial advice
If doctors ignored peer-reviewed academic evidence they would be struck off. So why are financial advisers allowed to get away with it? There’s a wonderful phrase that was used for centuries to describe someone who clings to an idea or way...
