While advising and guiding thousands of families over my 30+ years as a financial advisor, one thing I have consistently observed is how the proper utilization of money truly can add significant happiness and fulfillment to one's life. However, such happiness isn’t found in accumulating possessions whose newness and excitement quickly fades away. Please listen carefully to what is conveyed in this brief video blog and take to heart the substantive message.
In my over 30 years of experience as a financial advisor, one of the most dangerous traits I’ve consistently witnessed amongst investors who attempt to manage their own investments is overconfidence in their own ability to make smart investment decisions. In this brief, three-minute video we learn more about this and what the academics warn about those who are of this mindset. In sharp contrast, one of the most important traits and mindset of successful investors is humility towards one’s own ability and behavior.
The retail mutual fund industry has long been known for their slick marketing in their ongoing efforts to entice consumers to invest with them. In this brief, three-minute video we cut through and expose some of their deceptive tactics and help you become better informed.
Study after study consistently demonstrates that speculative, active management is truly a fool’s errand. In this brief video, Dr. David Blake explains why.
What is Evidence-Based Investing? How is it grounded in academia? In this brief video, we explain.
There’s a simple reason why the evidence clearly shows that the vast majority of investors, when attempting to “go it alone,” end up underperforming the returns available to them in the markets – emotions.
In this brief, 3-minute video, learn more about why I regularly say, “Successful investing is 1% intellectual and 99% behavioral.”
A study done by Cambridge University once again demonstrates why the vast majority of money managers who attempt to outperform markets by choosing certain stocks or engaging in market timing, simply fail. And, by building beautifully diversified portfolios of low-cost asset class funds (or at least low-cost index funds), one can avoid playing the loser’s game of speculation, which is at the root of active management and unfortunately how most continue to invest.
Please enjoy this brief, 3-minute video.
Long-term, historical academic evidence demonstrates that over time there are certain “factors” that can provide somewhat higher expected (albeit never guaranteed) returns vs. simply holding a capitalization-weighted market index. Some of these factors that can potentially add a premium return include value stocks, small company stocks, and stocks of companies who have demonstrated consistent profitability.
However, many who attempt to add these premium factors to their portfolios don’t ever reap the rewards of these higher expected returns because they are impatient and get lured into chasing recent performance of whatever has been “hot” of late. Behavioral psychologists identify this behavior as recency bias.
In the following brief, three-minute video we discuss some of these factors with Morningstar and how investors often end up with subpar performance because of their own behavior.