Archive for the ‘How Not To Invest’ Category

Rebalancing, Explained

Rebalancing, Explained

By The Banker | Ask an Ex-Banker, Blog Posts, How Not To Invest, Investing, Texas

Editor’s Note: A version of this post appeared today in the San Antonio Express News: A former student at Trinity sent me a Facebook message recently. He linked to an advertisement message for an investment advisory company that emphasized the importance of ‘rebalancing’ one’s investment portfolio every quarter or every year. I realized I had [&hellip

More On Actively Managed Equity Mutual Funds

More On Actively Managed Equity Mutual Funds

By The Banker | Blog Posts, How Not To Invest, Investing, Personal Finance, Wall Street

Lately I’ve taken to saying boldly and loudly to anyone who asks my opinion (and some who don’t!) that every academic study ever done on actively managed (high cost) mutual funds vs. passively managed index (low cost) mutual funds shows that, in aggregate, the actively managed funds under-perform the passively managed funds by approximately the [&hellip

Do You Need An Investment Advisor? And Why?

Do You Need An Investment Advisor? And Why?

By The Banker | Blog Posts, How Not To Invest, Investing, Personal Finance, Texas

A version of this post previously appeared in the San Antonio Express News. Some friends of mine recently opened up investment accounts with a guy who is a salesman at a national insurance company. My friends also hired a “fiduciary” to review their investment plans. Finally, they consulted me, for free, on what to do [&hellip

529 Accounts v. Retirement Accounts

529 Accounts v. Retirement Accounts

By The Banker | Blog Posts, How Not To Invest, Investing

A version of this post appeared today in the San Antonio Express News. People who give financial advice – like me – can be so annoyingly contradictory sometimes. Some friends of mine with young kids – like me – asked me recently to look over their investment plans, and to give them my opinion on [&hellip

Book Review: A Random Walk Down Wall Street

Book Review: A Random Walk Down Wall Street

By The Banker | Book Reviews, How Not To Invest, Investing, Personal Finance, Wall Street

First published forty years ago, A Random Walk Down Wall Street by Burton G. Malkiel is one of those books – much like Benjamin Graham’s The Intelligent Investor – more referred to than actually read. Malkiel’s central thesis – that equity markets are so efficient at pricing stocks relative to their risk that the vast majority of [&hellip