Investing and the Intertemporal Conundrum

I went to see Interstellar last night.  I won’t ruin it for you, but if you’re in to things like time travel, intergalactic travel and space ships then you should probably go see it.  One of the central themes of the movie is relative time discrepancy.  Due to gravitational anomalies…

Understanding Money

Just letting readers know that I’ve updated the “Understanding Money” section on the Orcam website.  My goal is to make this a comprehensive section of the site helping people better understand money, finance and economics.  If you have anything you’d like me to write about or if there are additions…

Louis CK on Risk Management

“I never viewed money as being ‘my money.’ I always saw it as ‘the money’. It’s a resource. If it pools up around me then it needs to be flushed back out into the system.” – Louis CK

The USA is Literally Falling Apart….

Good segment on 60 Minutes here exploring the very serious problem of America’s failing infrastructure.  Last week I noted that an infrastructure plan should be one of our “no-brainer” policy ideas.  If you want to see just how huge a problem this is then watch the 60 Minutes segment.  It’s…

Avoiding The Recency Bias in Foreign Stock Markets

“International diversification might not protect you from terrible days, months, or even years, but over longer horizons (which should be more important to investors) where underlying economic growth matters more to returns than short-lived panics, it protects you quite well.” – Cliff Asness

Deep Thoughts from Howard Marks

I just wanted to pass on this great talk from Howard Marks at the CFA Institute.  He touched on a variety of different topics and many that I fully agree with: Risk and reward are not necessarily correlated.  After all, if riskier assets could always be counted on to generate…

3 No-Brainer Policies Our Government Won’t Implement

I catch a lot of flak for trying to remain politically agnostic.  Which is deserved I guess.  But when I talk about money and finance I generally try to remain operational in nature.  That is, I try my best to speak objectively from what I know about the world and…

The Difference Between an Investment Firm and a Marketing Firm

I’m doing some research for a side project and came across an absolute gem from Jason Zweig that appeared in John Bogle’s book Common Sense on Mutual Funds. Here’s Zweig’s take on the difference between a marketing firm and an investment firm from an industry conference in 1997:

Updated Performance of the Global Financial Asset Portfolio

I’ve spent years here griping about how most people don’t benchmark properly and how we should stop comparing everything to the S&P 500.  The logic behind this thinking is simple – at the aggregate level there is only ONE portfolio of all outstanding financial assets.  Therefore, “the market” has to…