Category Archives: behavioral finance

Finance Conferences: G.O.A.T.?

Much has already been written about last week’s Evidence Based Investment Conference in NYC. Put on by the fine gentlemen at Ritholtz Wealth Management and IMN, both the speaker and attendee list was a who’s-who of current and upcoming finance (Twitter) celebs. I won’t rehash sessions and speakers here, but if you’re interested, check out: […]

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Meditations (for investors)

I am neck-deep in the modern translation of Marcus Aurelius’ Meditations (sorry, I couldn’t handle the “thy”s and “thou”s of the old translation, and my Koine Greek is pretty rusty since undergrad. Yes, I’m serious). Admittedly I have fallen in love with it, probably more than I loved Seneca’s Letters from a Stoic which is really saying something for […]

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A Collection of Regrets

Earlier this week I was chatting on Twitter with some folks about my generation and homeownership and mentioned that I regretted buying our “starter home.” This sparked some thoughts about regrets, financial mistakes I’ve made and things I would change if I could go back in time and do it again, at least from a […]

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Sirens blazing

Bloomberg has an incredible story up today about a small hedge fund putting up some crazy figures and a slew of that-doesn’t-smell-right observations about the fund, its accounting, its strategy and its manager. I can’t bring myself to go through each and every one of them, so you should really go read the story: How […]

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Your Personal Financial Planning CAPE Ratio

I was thinking some more about this piece I wrote about moving averages and how we get too much data, and then found myself thinking about how CAPE obsessed many investors have become. For the uninitiated, CAPE aka Cyclically-Adjusted Price/Earnings Ratio aka CAPE10 aka PE10 aka Shiller’s CAPE is a valuation measurement designed to smooth […]

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Too much feedback

Early this year I did something I have practically never done: went on a diet. I have always been very active and generally put in decent annual miles on the bike. But years of assuming that being active meant I could do whatever I wanted when it comes to beer and pizza had started to […]

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Watch your influences

We are all products of those around us. What goes into our brain affects who we are, how we view the world, how we perceive the people around us. I was thinking about this recently when a good friend of mine mentioned that he had been cutting back on some of the darker themed TV […]

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You’re the worst

I had a great conversation with some clients last week about our investment strategy. Some of the discussion centered around why I recommend the mostly passive, long-term, low-cost strategy that I do, and why we don’t do some other things that might work too. I think that a low-cost passive strategy is most people’s best […]

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My Dangerously Selective Memory

Lately I have been doing something that you might think is a bit odd. I have been forcing myself to re-live and hold on to painful or unpleasant memories. As an investor, I think you should too, and here’s why. Among the many strange things our brains do is something called the “fading affect bias.” […]

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Things Won’t Stay The Same

My kids keep growing up, and it continues to surprise me. One who was just learning to stay upright is now a constant chatterbox and a daredevil on her Strider bike. The other seems to have grown a foot this year and has gone from quiet and reserved to confident ringleader of her friends. But […]

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What is and isn’t “Risk”

It’s a popular thing to bash on measuring the risk of an investment portfolio with standard deviation, the preferred metric of most academic studies. If you skipped stats in college (congratulations, by the way), standard deviation measures how much movement around an average return you might expect in an asset or portfolio.  So higher standard […]

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No Shortcuts

Yesterday in the mail we got a flyer for some new gym opening near our house. I glanced at it on its way to the recycling bin. The advertisement was promising super-efficient workouts to burn more calories than average, and keep burning calories for days after! What a miracle. I’m a fairly active guy for […]

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