Masters in business interview I did with Barry Ritholtz

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larryswedroe
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Masters in business interview I did with Barry Ritholtz

Post by larryswedroe » Sat Oct 11, 2014 9:22 pm


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Re: Masters in business interview I did with Barry Ritholtz

Post by pkcrafter » Sat Oct 11, 2014 9:54 pm

Thanks Larry, very good discussion. I caught it on radio today.

Paul
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Re: Masters in business interview I did with Barry Ritholtz

Post by cfs » Sat Oct 11, 2014 10:42 pm

Thanks.

Larry, thanks for the link to one of your best interviews. Good conversation. Oh by the way, at the end I really liked the part about "winning the game of life." Thanks again /fig
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Re: Masters in business interview I did with Barry Ritholtz

Post by larryswedroe » Sun Oct 12, 2014 8:23 am

Paul
Just in case, the website has about another half hour of our discussion beyond the radio interview
Glad you enjoyed it
Larry

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Re: Masters in business interview I did with Barry Ritholtz

Post by nedsaid » Sun Oct 12, 2014 9:14 am

Larry, this was a very good interview. It was a good review of everything you write about. Repetition is an excellent way to reinforce what one has already learned.

It was a wide ranging discussion and you did a nice job of summarizing the topics you so often write about. An hour very well spent.
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Re: Masters in business interview I did with Barry Ritholtz

Post by SpringMan » Sun Oct 12, 2014 10:02 am

One of the best interviews I have heard in a long time. "I never met a stomach that made good decisions" put a smile on my face.
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Re: Masters in business interview I did with Barry Ritholtz

Post by livesoft » Sun Oct 12, 2014 10:06 am

Great interview with respect to information content, but Barry keeps stepping on Larry's words, so many thoughts are left unfinished which is rather off-putting. I don't think there is any polite way to ask Barry to go to interviewer school.
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steve roy
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Re: Masters in business interview I did with Barry Ritholtz

Post by steve roy » Sun Oct 12, 2014 10:42 am

I listen to RItholtz a lot, and enjoy him, but he ALWAYS jumps in.

Too much caffeine.

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Re: Masters in business interview I did with Barry Ritholtz

Post by cfs » Sun Oct 12, 2014 11:23 am

Concur.

Concur with Lifesoft and Steve, hopefully Mister Ritholt will get the opportunity to read this conversation and get the hint on letting the other person finish talking before jumping in.
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Re: Masters in business interview I did with Barry Ritholtz

Post by matjen » Sun Oct 12, 2014 12:35 pm

Great interview Larry. Would encourage those interested to listen to the long version. Lots of good stuff in the extra period.
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Re: Masters in business interview I did with Barry Ritholtz

Post by lab945 » Tue Oct 14, 2014 11:26 pm

Larry,

I enjoy and appreciate your contributions to this site and I really enjoyed the interview and have read most of your books. One question I have concerns your statements about RAFI in the interview. The statement concerning the RAFI returns being explained by French Fama.

I use portfolio visualizer to run some Fama French Regression Analysis. In many cases the RAFI indexes show some alpha. An example of this would be http://www.portfoliovisualizer.com/fact ... rDataSet=1 .

I thought maybe some of the alpha was coming from the quarterly rebalance when the price changes more than the underlying index values and is rebalanced back to the index values. Could this be an advantage over similar FF tilted funds or etfs? Other opinions are also welcome.

Thank you.

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Re: Masters in business interview I did with Barry Ritholtz

Post by matjen » Wed Oct 15, 2014 11:08 am

lab945 wrote:Larry,

I enjoy and appreciate your contributions to this site and I really enjoyed the interview and have read most of your books. One question I have concerns your statements about RAFI in the interview. The statement concerning the RAFI returns being explained by French Fama.
Cliff Asness spent some effort taking this apart pretty well. Larry put up a post here: http://www.bogleheads.org/forum/viewtop ... st=2165785
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Re: Masters in business interview I did with Barry Ritholtz

Post by Tigermoose » Wed Oct 15, 2014 11:22 am

I enjoyed this as well. I listened in on the Bloomberg radio app which included the extra podcast interview.
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Re: Masters in business interview I did with Barry Ritholtz

Post by larryswedroe » Wed Oct 15, 2014 12:20 pm

lab
hope this is helpful, from a piece I did while ago on subject
The following is an example of the role serendipity can play in returns. The Research Affiliates Fundamental Indices (RAFI) are value based strategies that weight the holdings based on four fundamental factors of sales, earnings, dividends and book value. The claim is that this strategy (which is not unique), as opposed to a single screen of earnings or BtM, generates superior results. As you will see, while that might be the case, as we have been discussing, serendipity can also play a role.
The RAFI indices reconstitute each March. Since they only reconstitute on an annual basis, the funds will lose exposure to the value factors over time as stocks that outperform migrate out of the asset class, but the RAFI indices continue to hold them. (DFA reconstitutes their benchmarks on a daily basis and Bridgeway does so on a monthly basis in order to avoid this drift which lowers expected returns.) We can see this in the results of a three-factor regression for the Power Shares ETF FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (so we can see data from a live fund) covering the period October 2006-June 2010. The value “loading factor” (exposure to the value factor) of PRFZ for the April through September period was 0.45 while it was just 0.21 in the October through March period. We see similar results for the Power Shares ETF FTSE RAFI US 1000 (PRF), a large-cap fund. For the period January 2006-June 2010 (this fund is bit older), the value loading factor for the April through September period was
0.55 and just 0.35 for the October through March period.
It turns out that in the U.S., using the MSCI indices, the value premium was 0.09 percent per month for the April-September period, but -0.36 percent per month for the October-March period, a seasonal difference of 45 basis points a month. Since there is no evidence of such seasonality in the value premium over the long term, the seasonality in RAFI’s value tilt worked out better than anyone could have hoped — serendipity played a role. The seasonal difference is even greater if we use the Fama-French HmL data.
Interestingly, for this particular period, the same seasonal pattern appeared around the globe. For the 23 countries in the MSCI indices used to calculate the value premiums the average value premium (averaged across countries) for the period December 1, 2005- December 31, 2010 was 0.14 percent per month in April-September (when the RAFI indices had a greater exposure to the value premium), and -0.69 percent per month in October-March (when the RAFI indices had a lower exposure to the value premium). The value premium was stronger in April-September than in October-March for 15 of the 23 countries.
Obviously, if the seasonal pattern in the value premium persists, the returns of the RAFI indices will look favorable compared to a more constant exposure to the value risk factor. But, there is no reason to expect that to occur.

Best wishes
Larry

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Re: Masters in business interview I did with Barry Ritholtz

Post by pondering » Sat Oct 12, 2019 12:31 pm

I’m tracking down his early podcasts, do you have an updated link?
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Re: Masters in business interview I did with Barry Ritholtz

Post by aristotelian » Sat Oct 12, 2019 1:32 pm

Wow, he has had some big time guests on that show. Congrats and can't wait to listen!

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Re: Masters in business interview I did with Barry Ritholtz

Post by lazyday » Sat Oct 12, 2019 2:38 pm

livesoft wrote:
Sun Oct 12, 2014 10:06 am
interviewer school
When I want to listen to a podcast without having to mess much with the podcast player, I listen to The Economist.

When I'm free to press the forward and back buttons so I can skip the host and listen to the guest, then I listen to Masters In Business or EconTalk.

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Re: Masters in business interview I did with Barry Ritholtz

Post by sabhen » Sat Oct 12, 2019 4:28 pm

This thread is from 2014.

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Re: Masters in business interview I did with Barry Ritholtz

Post by pondering » Sat Oct 12, 2019 4:40 pm

sabhen wrote:
Sat Oct 12, 2019 4:28 pm
This thread is from 2014.
I revived the thread because I'm creating a wiki for the podcast
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Re: Masters in business interview I did with Barry Ritholtz

Post by arcticpineapplecorp. » Sat Oct 12, 2019 4:43 pm

sabhen wrote:
Sat Oct 12, 2019 4:28 pm
This thread is from 2014.
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Re: Masters in business interview I did with Barry Ritholtz

Post by bck63 » Sat Oct 12, 2019 7:36 pm

The link doesn't open to the interview, Larry. Any way it can be located some other way?

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Re: Masters in business interview I did with Barry Ritholtz

Post by dharrythomas » Sun Oct 13, 2019 4:56 pm

bck63 wrote:
Sat Oct 12, 2019 7:36 pm
The link doesn't open to the interview, Larry. Any way it can be located some other way?
Masters in Business is pretty popular. You should be able to find it where you get podcasts. There are a number of interesting interviews in the archive.

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Re: Masters in business interview I did with Barry Ritholtz

Post by JAZZISCOOL » Sun Oct 13, 2019 5:06 pm

Thanks, Larry.

However, I can't open that link (tried 2 different browsers) nor can I find it on the Bloomberg or the iTunes site yet. Is it under a different title? Thanks! :D

Binyamin Appelbaum is the most recent interview on this podcast on iTunes. Perhaps it takes a couple days to get uploaded.

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