Archive for the ‘Wall Street’ Category

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

Michael Lewis Still Says It Better Than Anyone

Michael Lewis Still Says It Better Than Anyone

By The Banker | Blog Posts, Wall Street

When Bankers Anonymous hands out its annual awards for the best “recovering banker” essays of the year, the black tie crowd typically goes on chattering amongst themselves, unheeding the speaker at the stage holding the golden microphone trophies. Why? Becuase they know that Michael Lewis will win the best essay trophy once again. Like clockwork. It’s [&hellip

Gross to Janus - Wait, What?!?!

Gross to Janus – Wait, What?!?!

By The Banker | Blog Posts, Investing, Wall Street

This makes zero sense. PIMCO founder Bill Gross will join Janus Funds? If you founded and built the largest bond fund company in the world, If your name is synonymous with that company, If you are the rockstariest rockstar of bond managers (if such a thing can exist), Why would you ever quit that firm [&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

The Giffen Good Concept Applied To Investments

The Giffen Good Concept Applied To Investments

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

Editor’s Note: A version of this post appeared in the San Antonio Express News “So…Money” column. The only “C” I got in college was in Intermediate Macroeconomics, but I remember one economics term that I really loved — the “Giffen Good.” With ordinary, rational, economic behavior, we expect that when prices go up, people buy [&hellip