Search found 12445 matches

by larryswedroe
Tue Jul 28, 2015 8:34 pm
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 36
Views: 3194

Re: Another look at dividend paying stocks

Nirav Dividends actually don't indicate quality Quality is related to: profitability such as ROA and ROE and gross margins low financial leverage low operating leverage low earnings volatility low idiosyncratic risk These are the metrics that go into the quality factor. Do you see dividends there? L...
by larryswedroe
Tue Jul 28, 2015 7:46 am
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 36
Views: 3194

Re: Another look at dividend paying stocks

btw-in general it should be surprising that dividend payers underperform as theory says there should be no difference in expected returns----remember any investor can create their own dividend by selling shares and any investor in dividend payer can undo the dividend. It's just that the investor &qu...
by larryswedroe
Mon Jul 27, 2015 6:51 pm
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 36
Views: 3194

Re: Another look at dividend paying stocks

Nirav As to your three points, first, there is simply no logic to a "dividend" strategy, not in financial theory. Dividends are not a factor in returns, though indirectly they MAY indicate exposure to other factors (such as quality/profitability, or at one time value). Second, it's not fiv...
by larryswedroe
Mon Jul 27, 2015 4:00 pm
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 36
Views: 3194

Re: Another look at dividend paying stocks

two points, Nisi, yes I very much disagree with those two, with EM bonds being the one I have the most disagreement with. Note I have disagreed with some of Malkiel's other recommendations (though I have the highest regards for him) especially to invest in China which he has argued for (making the m...
by larryswedroe
Mon Jul 27, 2015 8:19 am
Forum: Investing - Theory, News & General
Topic: Another look at dividend paying stocks
Replies: 36
Views: 3194

Re: Another look at dividend paying stocks

One thing to keep in mind you can improve the returns of the non div payers by simply applying some screens to kick out the lottery stocks, those penny stocks and growth stocks with low/no profitability.
Larry
by larryswedroe
Thu Jul 23, 2015 6:27 pm
Forum: Investing - Theory, News & General
Topic: Does how often you check your portfolio correlate with returns
Replies: 35
Views: 2653

Re: Does how often you check your portfolio correlate with returns

Late Starter I don't have any particular definition. What the research finds is that IN GENERAL the less frequently one looks the better they do But if you look every day and it doesn't impact your activity that wouldn't matter---but that would make you the unusual person. So it really depends on th...
by larryswedroe
Wed Jul 22, 2015 5:07 pm
Forum: Investing - Theory, News & General
Topic: Does how often you check your portfolio correlate with returns
Replies: 35
Views: 2653

Re: Does how often you check your portfolio correlate with returns

Fig, My pleasure and glad you found it helpful. Just simple thought to consider. If you don't check values you are far less likely to be tempted to trade (sell) and we know inactivity (other than tax loss harvesting and rebalancing) is better than activity. Note not only is the pain of a loss on ave...
by larryswedroe
Wed Jul 22, 2015 11:39 am
Forum: Investing - Theory, News & General
Topic: Does how often you check your portfolio correlate with returns
Replies: 35
Views: 2653

Does how often you check your portfolio correlate with returns

http://www.etf.com/sections/index-investor-corner/swedroe-its-ok-look-away

Turns out correlation is negative, as you might guess
As Buffett said, he continues to make more money when snoring than when awake
Larry
by larryswedroe
Mon Jul 20, 2015 1:51 pm
Forum: Investing - Theory, News & General
Topic: a tale of two small value funds
Replies: 30
Views: 3303

Re: a tale of two small value funds

Nisi Sorry been traveling and just got back from two weeks in Ireland on Tauck tour. Few comments., First we looked at 3 passive small value funds so it should not be surprising that given their construction rules you would get high and significant loadings on the three factors of beta, size and val...
by larryswedroe
Mon Jul 20, 2015 1:44 pm
Forum: Investing - Theory, News & General
Topic: first half look at hedge fund returns
Replies: 11
Views: 884

Re: first half look at hedge fund returns

MAYNARD We agree completely that hedge funds are not an asset class, they are a compensation scheme With that said the data very much disagrees with you on returns, adjusted for risks, in fact typical hedge funds have high risks as they don't really hedge anything. Basically as group results are sim...
by larryswedroe
Mon Jul 20, 2015 9:09 am
Forum: Investing - Theory, News & General
Topic: first half look at hedge fund returns
Replies: 11
Views: 884

Re: first half look at hedge fund returns

Taylor asked me about biases in the data on hedge funds, specifically due to self reporting. So thought I would post a general response. To begin self reporting can work to ways. Those that have poor returns will likely choose not to report while those with great returns and don't want new money may...
by larryswedroe
Fri Jul 17, 2015 3:15 pm
Forum: Investing - Theory, News & General
Topic: Shiller - The Mirage of the Financial Singularity
Replies: 17
Views: 2506

Re: Shiller - The Mirage of the Financial Singularity

FWIW
I speak regularly to groups at Tiger 21 a group of very high net worth investors
Many of told me they invest in Renaissance Technology funds that have been set up separate from the fund that manages their personal assets and not one did well at all.
Larry
by larryswedroe
Fri Jul 17, 2015 3:12 pm
Forum: Investing - Theory, News & General
Topic: fund construction rules matter
Replies: 2
Views: 528

fund construction rules matter

http://www.etf.com/sections/index-investor-corner/swedroe-5?nopaging=1

thought this analysis of small cap indices would be of interest
Larry
by larryswedroe
Mon Jul 13, 2015 10:21 am
Forum: Investing - Theory, News & General
Topic: review of research on carry trade
Replies: 0
Views: 229

review of research on carry trade

http://www.etf.com/sections/index-investor-corner/swedroe-truth-about-carry-trade?nopaging=1 hope you find this of interest --the carry trade is one of the best documented strategies, going back decades as strategy and research shows why it is expected to work, just like with stocks there's a risk ...
by larryswedroe
Sat Jul 11, 2015 4:03 pm
Forum: Investing - Theory, News & General
Topic: a tale of two small value funds
Replies: 30
Views: 3303

Re: a tale of two small value funds

nisi
the tstat for each fund was significant, when you have more than one fund you have tstats, plural -one tstat for each fund
thought that sure have been very clear, have written that language hundreds of times and no one ever had any confusion
Larry
by larryswedroe
Sat Jul 11, 2015 9:47 am
Forum: Investing - Theory, News & General
Topic: look at structured notes
Replies: 16
Views: 1332

Re: look at structured notes

active funds serve a clear social value, setting prices and keeping markets efficient and thus capital allocated efficiently. only issue is question of is the cost worth the social benefits? Most structured notes serve no social purpose at all, as same objective can be accomplished by buyer at lower...
by larryswedroe
Fri Jul 10, 2015 11:55 am
Forum: Investing - Theory, News & General
Topic: look at structured notes
Replies: 16
Views: 1332

look at structured notes

http://www.etf.com/sections/index-investor-corner/swedroe-4
Most of these should be made illegal IMO as they truly serve no social purpose, only serving to transfer assets from investors to issuers
Larry
by larryswedroe
Mon Jun 29, 2015 9:00 am
Forum: Investing - Theory, News & General
Topic: Puerto Rico Governor Says Island’s Debts Are ‘Not Payable’
Replies: 37
Views: 3467

Re: Puerto Rico Governor Says Island’s Debts Are ‘Not Payable’

Just because a bond fund owns PR bonds does not mean that they will suffer losses, they could own bonds that have been PRE REFINANCED, meaning they are backed by safe bonds, typically Treasuries
Larry
by larryswedroe
Thu Jun 25, 2015 9:08 am
Forum: Investing - Theory, News & General
Topic: a Look at Neuberger Berman funds, comparing to passive funds
Replies: 7
Views: 1127

Re: a Look at Neuberger Berman funds, comparing to passive funds

m personal definition of passive is that active involves judgment leading to individual security selection while passive is systematic process that is repeatable and doesn't involve judgment. So by that definition DFA, AQR, Bridgeway, Wisdom Tree, RAFI are all passive. Fama's definition was no indiv...
by larryswedroe
Mon Jun 22, 2015 11:40 am
Forum: Investing - Theory, News & General
Topic: The impact of HFTs on trading costs and liquidity
Replies: 0
Views: 354

The impact of HFTs on trading costs and liquidity

http://www.etf.com/sections/index-investor-corner/swedroe-high-frequency-trading-price-efficiency?nopaging=1 Way too much negative press about the HFTs, though some simple solutions are available to address the abuses that do occur--such as must leave a bid or offer outstanding for X period of time...
by larryswedroe
Fri Jun 19, 2015 7:36 am
Forum: Investing - Theory, News & General
Topic: incorporating non financial assets
Replies: 0
Views: 349

incorporating non financial assets

So many investors and I have found even professional advisors don't consider the non financial assets when developing investment plans http://www.etf.com/sections/index-investor-corner/swedroe-remember-nonfinancial-assets?nopaging=1 Hope you find this of interest Note if want to read about the issue...
by larryswedroe
Wed Jun 17, 2015 3:01 pm
Forum: Investing - Theory, News & General
Topic: relationship between country growth rates and stock returns
Replies: 5
Views: 829

Re: relationship between country growth rates and stock returns

First, this study only confirms what studies going back to 1900 have found, so the short period is supported by the VERY long term evidence. Second, to answer Jimkinny's question,if you can successfully forecast faster than expected GNP growth it's possible you could benefit, but not for sure becaus...
by larryswedroe
Wed Jun 17, 2015 8:04 am
Forum: Investing - Theory, News & General
Topic: relationship between country growth rates and stock returns
Replies: 5
Views: 829

relationship between country growth rates and stock returns

http://www.etf.com/sections/index-investor-corner/swedroe-high-growth-countries-no-sure-thing no different than with individual stocks, the expected growth in earnings is already built into prices. Hope you find this helpful, it's an issue I continually have to address with clients/investors Larry
by larryswedroe
Mon Jun 15, 2015 7:10 am
Forum: Investing - Theory, News & General
Topic: UK Bogleheads
Replies: 2
Views: 439

UK Bogleheads

In case any of you are interested there has been a UK version of Think, Act, and Invest Like Buffet in the works and finally set to go to printers and should be available within a few weeks. It was done in coordination with the folks at Barnett Ravenscroft Wealth Management, who also work with Sensi...
by larryswedroe
Mon Jun 08, 2015 7:44 am
Forum: Investing - Theory, News & General
Topic: performance of UITs, study on stock picking skills
Replies: 1
Views: 214

performance of UITs, study on stock picking skills

http://www.etf.com/sections/index-investor-corner/swedroe-costs-undermine-active-investment?nopaging=1

A different look at stock picking skills by looking at the performance of these funds which do no trading at all

Larry
by larryswedroe
Fri Jun 05, 2015 8:25 am
Forum: Investing - Theory, News & General
Topic: some further research on profitability factor
Replies: 0
Views: 231

some further research on profitability factor

http://www.etf.com/sections/index-investor-corner/swedroe-exploring-profitability-factor/page/0/1

Thought this would be of interest, also supports why using p/cf is important measure in value (gets loading on profitability/quality factor)

Larry
by larryswedroe
Thu Jun 04, 2015 9:22 pm
Forum: Investing - Theory, News & General
Topic: interesting blog post from Prof. Damodaran on impact of cash and debt on P/E
Replies: 5
Views: 786

Re: interesting blog post from Prof. Damodaran on impact of cash and debt on P/E

Advisor Perspectives asked me to write a piece for them on the whole issue of the CAPE 10 and is Grantham and others right about it being so high that market is overvalued
by larryswedroe
Thu Jun 04, 2015 8:29 am
Forum: Investing - Theory, News & General
Topic: interesting blog post from Prof. Damodaran on impact of cash and debt on P/E
Replies: 5
Views: 786

interesting blog post from Prof. Damodaran on impact of cash and debt on P/E

http://aswathdamodaran.blogspot.com/

For those interested in these subjects it's very worthwhile read. Damodaran is one of the leading thinkers on valuations and impact on forecasted returns
larry
by larryswedroe
Thu Jun 04, 2015 7:41 am
Forum: Investing - Theory, News & General
Topic: Michael Kitces' list of 10 best books for financial advisors
Replies: 0
Views: 521

Michael Kitces' list of 10 best books for financial advisors

https://www.kitces.com/blog/summer-reading-list-of-best-books-for-financial-advisors-2015-edition/

Thought would be of interest as many of the books impact all of us, not just investors or advisors

Best wishes
Larry
by larryswedroe
Wed Jun 03, 2015 2:50 pm
Forum: Investing - Theory, News & General
Topic: blog on study on active mgt in "inefficient" market
Replies: 6
Views: 637

Re: blog on study on active mgt in "inefficient" market

nedsaid Two things to remember, First, the more informationally inefficient the market the greater the implementation costs tend to be, so even if you can uncover information that has value it costs lot more to benefit from it. So while costs are low in informationally efficient markets like US larg...
by larryswedroe
Mon Jun 01, 2015 6:41 pm
Forum: Investing - Theory, News & General
Topic: AQR/Asness - Risk Parity Is Even Better Than We Thought
Replies: 18
Views: 1514

Re: AQR/Asness - Risk Parity Is Even Better Than We Thought

BTW-the larry portfolio can be thought of as a risk-parity type strategy, with more equal allocations to beta, size and value and also more bond risk than typical 60-40 portfolio.
Larry

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