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…

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…

Torturing Historical Market Data

I received a few comments from some statistical-minded readers on my post about what happens to stocks after periods of above average performance. Because I used some rolling average return figures I was told I was looking at the data the wrong way.

Assessing the Ray Dalio/Tony Robbins Portfolio

I was intrigued by this article on Yahoo Finance by Tony Robbins who cites his interview with Ray Dalio in his upcoming book.  I ordered the book despite the fact that the blurbs in the back struck me as outlandish.  For instance, the back cover says: “Learn how you can…

Grantham’s Prudent Investor Portfolio

I found this section of GMO’s latest quarterly letter to be of particular interest.  Grantham discusses a “prudent investor” portfolio that can provide decent risk adjusted returns in a tough environment: “Exhibit 1 shows an example of a portfolio that might be used in a world that excludes private equity…