In the early minutes of the stock market open on Monday morning things got a little crazy. After a huge whoosh down in overnight futures trading, the NASDAQ fell almost 9% while the S&P 500 was down around 6% right after the opening bell. Watching it in real time was a sight to behold. Less…

There haven’t been many safe places to hide from the current market sell-off. Here are the returns through the end of the day on Tuesday for a variety of markets and styles: I’m sure there are some select strategies that are holding up during this downturn, but from a traditional perspective, bonds are really the…

In my younger days, I used to get my haircut at an old school barber shop. It had the candy cane red and white pole outside and all. It was the kind of place where the barbers were more worried about the multiple conversations going on and joking around than sticking to a schedule and…

U.S. stocks were up nearly 400% in the 1980s. All anyone remembers is the 1987 crash. Bonds gave investors a total return of more than 100% in the 1990s. All anyone ever talks about is the 1994 crash when interest rates spiked. Emerging market stocks were up 185% in the 1990s. Yet we continue to…

Early on in my career, I was gifted a copy of Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger. Up until that point, I was mainly a Buffett devotee, but quickly became fascinated by his business partner who took a slightly different approach and focused more on a broader subset of skills than…

This week I had lunch with my first boss who gave me my start in the investment business. I learned a lot from him in my first few years and it’s amazing how often I go back to some of the basic principles he taught me.

A reader asks: I have a fairly large sum of money to invest, but I’m nervous about current stock market levels. What are my options to put this money to work in the markets? I’ve actually been getting this question or some variation of it from quite a few people for the past few years….

There’s a great scene in the movie Ex Machina where genius inventor Nathan describes how he was able to crack the code for creating artificial intelligence in a robot. (Not sure if this is a spoiler alert, but if you haven’t seen the movie yet and want to go in blind, skip this next paragraph.)…

Risk-adjusted return measures have been around for some time now, but following the financial crisis professional money managers and asset allocators zeroed in on these formulaic performance metrics like never before. One of the most well-known risk-adjusted return formulas, the Sharpe Ratio, is simple a measure of return per unit of risk. It takes the annual…

Over an 18 year period Bernie Madoff claimed to offer his investors annual returns of nearly 11%, not too far from the average long-term gains in the stock market. The crazy thing about Madoff’s Ponzi Scheme was not that he was offering outrageously high (fake) returns to his unwitting investors. It’s that he was offering…