Avoiding the Zeros

Games involving strategy can be classified into two buckets: winner’s games or loser’s games. The difference is that a “winner’s game” victor utilizes superior maneuvers to overwhelm opponents, whereas a “loser’s game” victor avoids fatal errors and self-sabotage. Investing has been labeled the latter type, discussed further in a recent article titled “Avoiding the Zeros.”…

Why Active and Passive Investment Are Not Mutually Exclusive

Last week, Bloomberg penned an article entitled Battered Funds Blame ETFs for Overrunning the Stock Market Again. The article (along with a subsequent Bloomberg sponsored podcast released around the same time) explores how passive investing could be blamed for the underperformance experienced by discretionary fundamental stock-picking managers. For anyone interested, the most recent SPIVA scorecard (as of…

Human Irrationality and Investment

As the battle between passive and active investing rages on and evidence continues to pile up to support the use of indexing strategies over picking stocks, investors continue to trade excessively in hopes of beating the market. Even worse, some pay exorbitant fees to managers that continually underperform. So, why do people continue to invest…

These Stupid Things Called Brains

I recently attended the Calgary CFA Society’s Annual Forecast Dinner. It’s probably the only event of the year where the entirety of the city’s investment and finance professionals come out of their dens for some awkward hobnobbing.

Is It Really That Easy?

All too often we encounter a scenario seemingly so straightforward, observe another who makes something appear so natural, or judge a problem appearing to have an obvious solution. As it applies to investment management, we achieve or learn of others realizing superior returns in what feels or appears effortless. However, our perception deceives us, as…