Search found 112 matches

by kontango
Tue Jul 14, 2015 10:44 pm
Forum: Investing - Theory, News & General
Topic: Dividend stock investing or Total Return?
Replies: 41
Views: 5114

Re: Dividend stock investing or Total Return?

The problem with the dividend investors' story is that dividend return is only a part of total return. In other words:

Total return = return from dividends + return from capital gains

Total return will be higher than the dividend return unless the economy has a long series of negative surprises over the long run, which isn't likely. In other words, total return > dividend return.

To me, "dividend investing" means investing in low risk stocks....stocks where the dividend component of total return is higher than that for higher risk stocks. But that's a risk story, not a return story. Total return will always be higher over the long run.
by kontango
Mon Mar 10, 2014 9:45 pm
Forum: Investing - Theory, News & General
Topic: Math Behind Information
Replies: 6
Views: 1122

Re: Math Behind Information

I get 1.10% (1.1039% to be more exact). I am assuming 5/31/2000 is t = 0.
by kontango
Mon Mar 10, 2014 9:11 pm
Forum: Investing - Theory, News & General
Topic: Stock pickers' market?
Replies: 19
Views: 2079

Re: Stock pickers' market?

It's not clear to me why lower correlation implies greater predictability in stock returns. It seems a poor interpretation of simple statistics.
by kontango
Sun Mar 09, 2014 9:39 am
Forum: Investing - Theory, News & General
Topic: Basic Efficient Market Theory Q
Replies: 23
Views: 2672

Re: Basic Efficient Market Theory Q

I'll quibble with your first point that indexing requires one to believe that markets are reasonably efficient. Market efficiency is sufficient for lack of predictability in prices, but it's not necessary. Even if we're all irrational (i.e., subject to behavioral biases), our behavioral biases can't be aggregated easily and therefore do not necessarily lead to predictable markets. In other words, both market efficiency and behavioral finance adherents believe, for the most part, that markets are difficult to predict consistently. They just disagree as to what drives the unpredictability. I think that indexing is simply about choosing your level of risk. Choose your poison. Investing in the total market is then about diversification, and lo...
by kontango
Sat Mar 08, 2014 8:31 pm
Forum: Investing - Theory, News & General
Topic: Basic Efficient Market Theory Q
Replies: 23
Views: 2672

Re: Basic Efficient Market Theory Q

I'll quibble with your first point that indexing requires one to believe that markets are reasonably efficient. Market efficiency is sufficient for lack of predictability in prices, but it's not necessary. Even if we're all irrational (i.e., subject to behavioral biases), our behavioral biases can't be aggregated easily and therefore do not necessarily lead to predictable markets.

In other words, both market efficiency and behavioral finance adherents believe, for the most part, that markets are difficult to predict consistently. They just disagree as to what drives the unpredictability.
by kontango
Sat Mar 08, 2014 8:23 pm
Forum: Investing - Theory, News & General
Topic: Where is the market heading?
Replies: 28
Views: 2526

Re: Where is the market heading?

Up. All stocks are priced (based on current information) to go up.
by kontango
Sat Mar 08, 2014 8:22 pm
Forum: Personal Finance (Not Investing)
Topic: Simplest Personal Finance Post
Replies: 7
Views: 1279

Re: Simplest Personal Finance Post

Very nice! I would have a (slight) quibble with #1, "Pay off all non-mortgage debt. Period."

I would pay off all non-essential debt whose after-tax cost is greater than the after-tax return on your investments. For example, I have a car loan that is 1.9%. I'll pay that all day long and six times on Sunday if I can earn more than that (after-tax) on my investments. In other words, if I have to liquidate an investment earning, say, 8%, to pay a loan costing me 1.9% it's a bad deal.
by kontango
Sat Mar 08, 2014 7:37 am
Forum: Investing - Theory, News & General
Topic: Are Long-Term Bonds better than Short-Term?
Replies: 49
Views: 4765

Re: Are Long-Term Bonds be better than Short-Term?

The problem with the analysis (if I understand it correctly) is that your FIL is comparing the 5% with the 3% return. The more relevant comparison, in my opinion, is the opportunity cost of being locked in at 5% (for 17 years) if interest rates go much higher.

Also your FIL's advice of "Never lose your investment principal" will likely be violated if you are holding 17 year bonds and interest rates rise. Sure, you'll get back every penny (ignoring default risk) at maturity, but it could be a bumpy ride along the way!

Best of luck!
by kontango
Sat Sep 01, 2012 8:19 pm
Forum: Personal Consumer Issues
Topic: IPAD question
Replies: 27
Views: 2819

Re: IPAD question

I find my iPad very useful and use it every day. But it can't come close to replacing my laptop.
by kontango
Fri Aug 17, 2012 8:51 am
Forum: Personal Finance (Not Investing)
Topic: Google Spreadsheet Formula 4 Real Interest Rate?
Replies: 8
Views: 1773

Re: Google Spreadsheet Formula 4 Real Interest Rate?

sscritic wrote:
kontango wrote:The exact formula is: Real rate = (1 - nominal rate)/(1 - inflation rate) - 1

But this will work as an approximation: real rate = nominal rate - inflation rate.
Are you sure you don't want to use plus signs?
http://personalfinance.byu.edu/?q=node/457
Oops you're right! I was posting before my coffee. I will edit!
by kontango
Fri Aug 17, 2012 7:58 am
Forum: Personal Finance (Not Investing)
Topic: Google Spreadsheet Formula 4 Real Interest Rate?
Replies: 8
Views: 1773

Re: Google Spreadsheet Formula 4 Real Interest Rate?

The exact formula is: Real rate = (1 + nominal rate)/(1 + inflation rate) - 1

But this will work as an approximation: real rate = nominal rate - inflation rate.
by kontango
Tue Aug 14, 2012 5:55 pm
Forum: Investing - Theory, News & General
Topic: boglehead theory question
Replies: 40
Views: 4630

Re: boglehead theory question

Market efficiency would break down. You need active investors trying to uncover information in order for prices to be accurately priced. If no one is searching for information, prices would no longer reflect fundamentals. As Grossman and Stiglitz wrote, there must be an "equilibrium degree of disequilibrium."
by kontango
Tue Aug 14, 2012 5:45 pm
Forum: Personal Investments
Topic: "Mad Money"....do you play?
Replies: 55
Views: 7658

Re: "Mad Money"....do you play?

I think your strategy is a nice controlled way to roll the dice. I don't know if 5% is the right amount or not, but I do believe it's nice to have a fixed allocation to "play money." I've done it before (and still do occasionally even though I know indexing is the best long-term strategy. Maybe we do it because we get entertainment value from it.

BTW, I think I even read where ol' Burton Malkiel does this.
by kontango
Tue Aug 14, 2012 5:40 pm
Forum: Investing - Theory, News & General
Topic: Cramer At It Again
Replies: 37
Views: 5246

Re: Cramer At It Again

Cramer, like many active investors, either doesn't know the evidence on active investing or doesn't believe it.
by kontango
Sat Jul 21, 2012 4:32 pm
Forum: Investing - Theory, News & General
Topic: Investing VS Gambling
Replies: 23
Views: 2143

Re: Investing VS Gambling

Your co-worker is taking risks he doesn't understand or recognize. Just because it has worked out for him over a limited period of time or on specific trades does not mean he knows what he's doing.
by kontango
Fri May 11, 2012 5:23 pm
Forum: Investing - Theory, News & General
Topic: Some arguments against indexing
Replies: 19
Views: 3199

Re: Some arguments against indexing

The argument that "large stocks are efficient but s/mids are not" is an old story with little support. The fact is the s/mid caps are smaller firms and have less liquidity. Once you properly control for all the risks (such as size, liquidity, etc) there is no free lunch.

Another way to approach this is be recognizing that, by plain arithmetic, not all managers can be above average in any market. In other words, the market-weighted average alpha for any market or sector must be zero.
by kontango
Wed May 09, 2012 10:06 pm
Forum: Investing - Theory, News & General
Topic: France
Replies: 37
Views: 3326

Re: France

The market has already responded which means you are too late. To profit you will have to correctly guess where the markets will go from here.
by kontango
Wed May 09, 2012 9:47 pm
Forum: Personal Finance (Not Investing)
Topic: Getting in MBA Program with a terrible undergrad GPA
Replies: 25
Views: 5618

Re: Getting in MBA Program with a terrible undergrad GPA

A couple of tips:

1. Emphasize your experience post-undergrad. People do mature once they enter into adult life. Often these folks make great graduate students.

2. Study for your GMATs. Good experience (including military experience) plus a strong GMAT can make a strong MBA application.

3. Show focus and maturity in your grad school essay.

Go for it! Best of luck.
by kontango
Wed May 09, 2012 6:29 am
Forum: Investing - Theory, News & General
Topic: Fama and French paper
Replies: 44
Views: 5181

Re: Fama and French paper

Interesting paper. This looks like a new paper they just started...they generated the core statistical results and did a quick write-up. If this goes to publications it will be beefed up quite a bit and rewritten. Regarding the DFA comment, I don't believe Fama is even associated with DFA any more. Even if he is, there is no evidence to suggest it is "pure marketing for DFA". No offense, but that's a bit of a ridiculous comment and reflects a lack of understanding of what DFA does and what academics do. You can be assured that if this paper goes to publication (especially at a typical Fama-French outlet like the Journal of Finance, Journal of Financial Economics or similar quality journal), it will go through a grueling peer-revie...
by kontango
Thu Apr 26, 2012 9:29 pm
Forum: Personal Consumer Issues
Topic: Ah.. Bermuda
Replies: 12
Views: 2385

Re: Ah.. Bermuda

One of our favorite destinations.
by kontango
Tue Apr 24, 2012 9:22 pm
Forum: Personal Consumer Issues
Topic: Best Finance Magazines?
Replies: 20
Views: 3454

Re: Best Finance Magazines?

For me it's the WSJ, Financial Times, and The Economist.
by kontango
Mon Apr 23, 2012 9:15 pm
Forum: Personal Investments
Topic: Wall Street full-service brokers.
Replies: 21
Views: 2608

Re: Wall Street full-service brokers.

Taylor Larimore wrote:
"Make no mistake about it, you are engaged in a brutal zero-sum contest with the financial industry (brokerage houses, mutual funds, and press). Every penny of commissions, fees, and transactional costs they extract is irretrievably lost to you. -- Their ultimate goal is the same: To transfer as much of your wealth to their ledger books as they can."

"Ninety-nine percent of what you read in and hear from the financial media is, in fact, advertising cloaked as journalism."
I couldn't agree more. Thanks for posting this.
by kontango
Sun Apr 22, 2012 8:17 am
Forum: Personal Finance (Not Investing)
Topic: Should We Kill the Dollar Bill?
Replies: 50
Views: 3264

Re: Should We Kill the Dollar Bill?

Well I do think we should get rid of the penny, and maybe even the nickel. Just pull them from circulation and stop making them.
by kontango
Thu Apr 19, 2012 8:04 pm
Forum: Personal Finance (Not Investing)
Topic: Penn State Honors College Vs. Cornell ... Thank you! Post #1
Replies: 116
Views: 22107

Re: Penn State Honors College Vs. Cornell

Penn State. The last thing I want my kids to start their lives with is a lot of debt. And, Penn State is a good school (but it's no Ohio State, mind you :-)).
by kontango
Thu Apr 19, 2012 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: How to sell good friend on the Boglehead way?
Replies: 55
Views: 4571

Re: How to sell good friend on the Boglehead way?

Nothing you can really do here. You can tell him what he ought to do and he will do it or he won't (probably won't).
by kontango
Tue Apr 17, 2012 6:57 pm
Forum: Investing - Theory, News & General
Topic: Whats out of favor now?
Replies: 71
Views: 6071

Re: Whats out of favor now?

The Dark Knight wrote:Efficient market theory means basically everything is "priced in" right?
The Efficient Market Hypothesis doesn't necessarily mean that everything is priced right. It means that you can't use pricing errors (i.e., mispricings) as signals to consistently earn positive abnormal returns (i.e., "beat the market" after adjusting for risk).
by kontango
Tue Apr 10, 2012 8:35 pm
Forum: Personal Investments
Topic: Can a person have no risk tolerance?
Replies: 63
Views: 4255

Re: Can a person have no risk tolerance?

Risk aversion is a completely subjective attribute. There is no right or wrong...you are who you are. If you have little tolerance for risk then invest in low risk assets...no problem. Of course you will have lower returns going forward, but that's not a big deal.

Remember the expected risk premium is what you need to be paid to bear risk. If you don't feel that returns compensate you for your subjective risk preferences then go for less risky assets. No problem with that.
by kontango
Tue Apr 10, 2012 11:39 am
Forum: Personal Consumer Issues
Topic: How to Die
Replies: 167
Views: 32006

Re: How to Die

As someone mentioned, this is a very personal decision. And what is considered "heroic measures" is different for each person. There is no right answer here. I have enormous respect for what each person decides, whether it is to do nothing, or do go for maximum treatment.
by kontango
Mon Apr 09, 2012 4:20 pm
Forum: Investing - Theory, News & General
Topic: TSM, Efficient Markets, and tilting
Replies: 33
Views: 3951

Re: TSM, Efficient Markets, and tilting

If you have a higher risk tolerance then you should borrow money to buy the TSM (i.e., lever up). If you have a lower risk tolerance than TSM you should sell some TSM and buy risk-free securities (Treasury securities).
by kontango
Mon Apr 09, 2012 5:59 am
Forum: Investing - Theory, News & General
Topic: Quote For The Day
Replies: 4
Views: 723

Re: Quote For The Day

noyopacific wrote:I just ran across this quote that I thought fellow Bogleheads might enjoy:
"There are three classes of people who don't think markets work;
the Cubans, the North Koreans and active money managers."
- Rex Sinquefield, co-author (with Roger Ibbotson) of: "Stocks, Bonds, Bills, and Inflation: Historical Returns (1926-1987)"
Mr. Sinquefield is also co-founder and past Chairman of Dimensional Fund Advisors
LOL. Great one!
by kontango
Sat Apr 07, 2012 5:06 pm
Forum: Personal Consumer Issues
Topic: Best watch for around $5,000? [Archived]
Replies: 1479
Views: 347568

Re: Best watch for around $5,000?

I Not too mention why would anyone spend $5,000 on a [watch/car/boat/ring/necklace/espresso machine/golf club/hot tub/baseball card]? When I'm 60 years old and rolling around in the millions of dollars I've made after 38 years of working & investing, I hope I don't get criticized for buying myself something that I enjoy and appreciate, especially for a measly $5k. By that time hopefully you won't care about buying a status symbol. Your ego won't require it. Anyway if you must have it now go down to NYC and buy a knockoff for $20. Nobody will know it's a fake. Just like they don't know your Mercedes is leased. :wink: Not everyone who buys a mechanical watch is trying to impress someone. In fact, most high end watch brands aren't even kn...
by kontango
Sat Apr 07, 2012 6:21 am
Forum: Personal Consumer Issues
Topic: What Book Are You Currently Reading? Part V
Replies: 3372
Views: 1561302

Re: What Book Are You Currently Reading? Part V

Planning to pick up Finance and the Good Society by Robert Shiller.
by kontango
Sat Apr 07, 2012 6:16 am
Forum: Personal Consumer Issues
Topic: Best watch for around $5,000? [Archived]
Replies: 1479
Views: 347568

Re: Best watch for around $5,000?

Can't go wrong with Rolex as a daily wearer, although for $5,000 you will have to go to the used market. Rolex is famous for ultra tight control of their distribution network (and thus their high prices). I personally prefer (and own) Omega. The Omega Seamaster AquaTerra with the 8500 movement is a fabulous watch and you can probably get it for just around $5,000.

However, there are many excellent watch brands available to you, not just Rolex or Omega. If you want to see what is available, try http://www.timezone.com. It's the world's largest forum for fine watches. I've been an active member for years.
by kontango
Sun Apr 01, 2012 7:42 pm
Forum: Investing - Theory, News & General
Topic: Hussman: Now is one of the worst times in history to invest
Replies: 100
Views: 12134

Re: Hussman: Now is one of the worst times in history to inv

10 days ago Peter Oppenheimer, Goldman's chief global equity strategist said, ""The prospects for future returns in equities relative to bonds are as good as they've been in a generation." Go figure.
by kontango
Sat Mar 31, 2012 11:30 am
Forum: Investing - Theory, News & General
Topic: POLL: How do you consider gold?
Replies: 61
Views: 4949

Re: POLL: How do you consider gold?

I view it as a "negative beta" asset. It pays off when things go to heck in a hand basket and does very little otherwise...kind of like insurance.
by kontango
Fri Mar 30, 2012 8:16 pm
Forum: Personal Consumer Issues
Topic: Will Bogleheads buy a Megamillions ticket this week?
Replies: 112
Views: 10448

Re: Will Bogleheads buy a Megamillions ticket this week?

Sure, why not? $20 worth for me. First time in years--no, make that a decade--since I've purchased a ticket.
by kontango
Wed Mar 28, 2012 4:27 pm
Forum: Investing - Theory, News & General
Topic: Think Twice About that Financial Advisor
Replies: 44
Views: 5495

Re: Think Twice About that Financial Advisor

Great post. And, I'm not surprised, unfortunately.
by kontango
Tue Mar 27, 2012 10:01 pm
Forum: Investing - Theory, News & General
Topic: Is there a Gauss or Einstein of investing?
Replies: 71
Views: 5782

Re: Is there a Gauss or Einstein of investing?

I'd have to say: Irving Fisher, Merton Miller, Franco Modigliani, Gene Fama, Michael Jensen, Harry Markowitz, Bill Sharpe, Fischer Black, Myron Scholes, and Robert Merton? Of course these are all speculation.
by kontango
Tue Mar 27, 2012 5:15 am
Forum: Investing - Theory, News & General
Topic: Is there a Gauss or Einstein of investing?
Replies: 71
Views: 5782

Re: Is there a Gauss or Einstein of investing?

Since the early twentieth century breakthroughs in physics, economists have suffered from the physics envy . In the past hundred years they have not learned that social phenomena are principally different from physical laws, let alone mathematics. Victoria Certainly there is some truth to "physics envy" (at least in the early days of economics), but I think it's difficult to so easily discount the sheer amount of knowledge that has been gained in finance over the past six decades. What was known 60 years ago pales in comparison to what we know now. There's much more to be done, but I believe we'd all be much worse off we didn't have the accumulated knowledge of academic finance (and economics). Just my opinion, of course. :-)
by kontango
Mon Mar 26, 2012 9:41 pm
Forum: Personal Investments
Topic: What magazine would you suggest
Replies: 12
Views: 1466

Re: What magazine would you suggest

I'm a long-time reader of the Economist and find it to be an excellent magazine...not an investment magazine per se, but very good for informing us about the world.

As for BB BusinessWeek, I've always found the stories so narrow as to be uninteresting. I've been an on-again, off-again subscriber. I don't know if I'll ever go back to it.
by kontango
Mon Mar 26, 2012 9:35 pm
Forum: Personal Finance (Not Investing)
Topic: Vanguard sent me a check for a penny
Replies: 25
Views: 3174

Re: Vanguard sent me a check for a penny

Invest it wisely. :-)
by kontango
Sun Mar 25, 2012 7:38 pm
Forum: Investing - Theory, News & General
Topic: Explain Double Taxation?
Replies: 21
Views: 2029

Re: Explain Double Taxation?

Hi, I have tried to understand the issue of Double Taxation but time and time I have failed. Q1) Why taxes paid on Dividend & Capital Gains are consider Double Taxation? Q2) Why taxes paid on Interest [Saving Account or CD] is not Double Taxation? Q3) Can some one give me insight on what Mr Bogle is outlining here. People talk about double taxation as dividends. Seventy-three percent of all stocks are owned by institutions that aren't really taxable—so we can think about it a little bit differently. Double Taxation = Right Wing Talking Point. Double taxation is true economic consequence of how corporations are taxed relative to sole proprietorships and other legal forms of business. Let me ask you a question. Have you ever had to pay i...
by kontango
Sat Mar 24, 2012 9:41 pm
Forum: Personal Finance (Not Investing)
Topic: Why does anyone use American Express?
Replies: 146
Views: 296754

Re: Why does anyone use American Express?

I love our Starwoods AMEX card. We've built up a ton of points for hotels and traveling.
by kontango
Sat Mar 24, 2012 4:35 pm
Forum: Investing - Theory, News & General
Topic: Glaring problem with "human capital" concept?
Replies: 35
Views: 2854

Re: Glaring problem with "human capital" concept?

I agree that human capital is not necessarily bond-like. Some may be equity-like, with peaks and troughs throughout. Others may even more random (i.e., without trend). So the future cash flows from human capital are risky meaning the value of human capital for each person can be discounted at different rates to reflect riskiness of the cash flow stream.

But, I don't have a problem looking at human capital before expenses. Maybe I'd want to know the value of my human capital so I can determine what lifestyle I can afford. But, there's no reason we can't look at human capital from both a "gross" and "net" perspective: Value of Net HC = Value Gross HC - PV of Expenses.
by kontango
Sat Mar 24, 2012 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: Strange meeting with a Merrill Lynch 'financial advisor'
Replies: 70
Views: 9807

Re: Strange meeting with a Merrill Lynch 'financial advisor'

The meeting was more or less a sales pitch to move my investment assets to his management. 1. He took from me a bunch of details mostly of the size of my brokerage account and completely excluded the topic of whether and how much I contribute to my 401k or to IRAs! An FA's job is to "gather assets." So, his schtick will always be a sales pitch. Nothing wrong with that as long as he is adding value to your situation. But, you have to be careful. 2. He told me that my Vanguard funds would charge me much more than the stated expense ratio on the funds. He also said that no load funds are looked down upon by everyone since the expenses are deducted from the returns and people are disappointed that the return shown on a website are no...
by kontango
Sat Mar 24, 2012 9:39 am
Forum: Investing - Theory, News & General
Topic: Interpreting Standard Deviation
Replies: 31
Views: 4088

Re: Interpreting Standard Deviation

laughlinlvr wrote:It is a matter of controversy whether individual or aggregate financial values conform to a normal distribution.
A lot of research has been done on the distributional properties of financial returns. And it's pretty clear that returns are not normally distributed. The distributions are "peaked" and leptokurtic ("fat-tailed"). And, this is true for returns of many financial instruments, not just equities.
by kontango
Sat Mar 24, 2012 9:22 am
Forum: Personal Finance (Not Investing)
Topic: Time Shares Investment or Black Hole
Replies: 28
Views: 3732

Re: Time Shares Investment or Black Hole

We have one and like it a lot and we use it frequently. However, it is not an investment! You will most certainly lose money on it or at best, break even. So buy a TS if you are looking for enjoyment, not an investment.

One tip: Don't buy from the resort! You can find time shares on the secondary market at a tiny fraction of what the resorts sell them for. Heck, some folks are almost giving them away just to get out from under the annual maintenance fee. We bought ours on eBay for a song, and have had it for many years.
by kontango
Fri Mar 23, 2012 3:13 pm
Forum: Personal Consumer Issues
Topic: From XP Professional to Windows or Apple
Replies: 69
Views: 4955

Re: From XP Professional to Windows or Apple

I was a long-time Windows user (and still am on my work laptop), but made the switch to Apple at home many years ago. I've never looked back. I really love Apple. When I made the switch to Apple, Windows was a pure PITA. Heck, Windows was its own virus. Having said all that, Windows 7 is a significant improvement over XP and previous Windows OS's. If familiarity is important to you, then upgrade to Windows 7. It's pretty stable and not a bad OS. I still much prefer Apple, but it's not as much as a necessity as it used to be when the Windows OS was unstable. Now it's just a preference (albeit a strong one). Also, my 75 year old father finally made the switch to Mac himself. He does like it, but I get the sense he misses his old familiar inte...
by kontango
Fri Mar 23, 2012 2:29 pm
Forum: Personal Finance (Not Investing)
Topic: Luck or Hard Work
Replies: 59
Views: 8836

Re: Luck or Hard Work

Life is a statistical event. Random things (both good and bad) will happen to you. The trick is to keep moving forward despite the random currents and don't quit.

The best quote I've ever heard to summarize this came from Thomas Watson who lead IBM in it's early days. He once said (I'm paraphrasing), "I can't tell you how to be successful, but I can tell you how to double your success rate: Double your failure rate."
by kontango
Fri Mar 23, 2012 2:01 pm
Forum: Investing - Theory, News & General
Topic: Interpreting Standard Deviation
Replies: 31
Views: 4088

Re: Interpreting Standard Deviation

You can think of it as the "average deviation from the mean". This is not technically true, but it's not a bad way to think about it intuitively.

Technically, it is the square root of the average squared deviation from the mean (a mouthful!). But, since standard deviation is measured in the same units as the mean (and the data), I like to think of it as some sort of average deviation from the mean.

BTW, the standard deviation works for any distribution, not just a normal distribution.