Rethinking Growth and Value
Last month I started a series on the anomalies to the efficient market theory which can create opportunities for outperformance. I discussed the opportunity presented when almost no one has…
Beating the Market with Insight
I have always been of two minds about financial research. For the good of society, my science and engineering background has shouted out to publicize any advances I thought I…
The Power of Patience
Patience… There are four major factors that lead to investment success: A good strategy A focused goal Controlled costs And patience Today I would like to concentrate on patience. The…
Understanding Financial Risk
Financial risk doesn’t just mean market volatility. There are many types of risk that can impact your long-term plan, including: Longevity risk — outliving your savings Inflation risk — losing…
Reframing the Retirement Question
The traditional question in financial planning has been: 'Will I run out of money?' But that’s not the most useful way to think about retirement. Instead, we prefer to ask:…
The Fourth Bubble
We believe the next big risk is a new kind of bubble: the bond bubble. Many investors have shifted to bonds and dividend stocks, seeking yield in a low-interest-rate environment.…
Protect, Detect, Correct
We often borrow from outside industries to describe our philosophy. One advertising slogan from Intel’s cybersecurity business — 'Protect, Detect, Correct' — perfectly describes our approach to portfolio management. PROTECT…
Compounding & the 1,000% Question
There are numerous investment approaches available for long-term growth. Some aim for lower volatility and accept lower returns — about 5% annually. Others embrace market indexes, which historically return ~10%…
Confidence in the Year Ahead
We are looking forward to 2016 in spite of the inauspicious start of the year. There are three major reasons for our optimism: the FED actions, our investment model adjustments,…
Tax Loss Selling & Year-End Strategy
As the year wraps up, we’re reviewing portfolios for tax loss selling opportunities. This strategy can reduce your tax bill while positioning your portfolio for future growth. If appropriate, we…
Finding the Dividend Sweet Spot
The Sweet Spot… Dividends are an important input to four of our portfolio formulas. Dividend payers can be divided into thirds. Those companies in the low and no dividend third…
Pipelines & Market Misunderstanding
Natural Gas Pipelines Supply… On the supply side there is an abundance of natural gas. New technologies are increasing the success rate of drilling, and the size of discoveries. Also,…