• How and Why To Invest In Commodities

    The best assets to add to an investment portfolio are those that increase the portfolio expected return while reducing the total volatility. To find such assets, investors seek those whose returns are not perfectly correlated with the returns of the existing...
  • How The Stock Market Works...Then and Now

    This very old film from 1957 describes how the stock market worked back then. Buying shares of stock meant investing in firms that employ people and produce goods and services. Owners of shares are entitled to any dividends that the company pays and they...
  • What is Risk?

    In this video, Peter Bernstein explains that risk means "more things can happen than will happen." It doesn't necessarily mean we're in danger, just that we're facing uncertainty. In finance, many people define risk as the probability...
  • Why Buy Bonds with Negative Yields?

    Back in the old days, we taught finance assuming that zero was the lowest interest rate possible. Not so any longer. Today, interest rates are negative and investors are putting up with it. Why? Well, there are several reasons that investors are willing...
  • The Darling Stock of Hedge Funds

    This CNBC video shows that Alphabet (parent company of Google) is the new darling of hedge funds. What are hedge funds anyway? The SEC describes them like this: Hedge funds pool investors’ money and invest the money in an effort to make a...
  • Black Swan Events in Recent History

    According to Nassim Taleb, people had always believed that swans were white. That is, until the discovery of Australia, when the first black swan was sighted. Taleb uses the metaphor of the bird to describe events that are so improbably, no one would...
  • Charley Ellis: The Shift in Active Investing Over 50 Years

    Active managers charge a fee to make investment recommendations, in contrast with passive investing where the investor accepts the same return that would be earned by buying a basket of stocks that match the market average. Active managers charge a fee...
  • Can You Do Better than Stock Experts?

    Is it worth the time and expense to pick stocks that you think are going to beat the market? What if you selected your stocks by simply throwing darts at the newspaper? Would you do better, the same, or worse than a managed fund (that is, a fund managed...
  • Ben Graham on Investing

    This archive video shows the legendary Ben Graham, author of The Intelligent Investor. He describes the activity of the investor in the stock market: "You have your choice between tossing coins and taking the consensus of expert opinion. And the...
  • What's Happening to Hedge Funds

    In this interview with Ken Griffin, CEO of Citadel, we see that second-tier hedge funds are closing due to competition. Everyone is seeking to beat the market and generate "alpha," but alpha is hard to find. For discussion : 1. How can investment...
  • What are Capital Gains

    Capital Gains are the profit on the sale of an asset that you own. The infographic below explains capital gains in more detail: Filed at Infographicsposters.com in Business Infographics
  • What Are ETFs?

    Exchange-Traded Funds or ETFs are pools of investments like mutual finds but, unlike mutual funds, ETFs trade on an exchange. That means they can be bought or sold all day long and an investor can go long or short. This video from the Financial Times...
  • Do You Need to Be Smart to Succeed?

    According to Warren Buffett, IQ may be the horsepower, but what matters more is the output. What do you admire most about someone? What are the qualities that turn you off the most in someone? The qualities you admire are likely qualities you can make...
  • Warren Buffett: How to Be Successful

    In this video, legendary investor Warren Buffett says he doesn't have to understand thousands of companies. He just has to understand some. The idea is that genius IQ is not required to be a successful trader. Instead, what is required is emotional...
  • The Retirement Gamble

    What's your retirement plan? Do you plan to work until you can't work any longer? How much do you have saved already and how much more do you expect to save by the time you retire? Are you trusting in Social Security to cover your expenses? ...
  • Investing in U.S. Cities

    You will find more statistics at Statista Investing in U.S. cities using municipal bonds comes with some risk of default. While cities have been known to default on their debt in the past, this article from MunicipalBond.com makes a case for investing...
  • What Are Hedge Funds?

    Hedge funds are popular among high net worth and institutional investors. They can offer higher returns, but they come with higher risks as well. The video above describes some of the features of hedge funds that distinguish them from traditional mutual...
  • Most Popular Investments

    From Visually . Peter Lynch is known for the "Invest in what you know" strategy and wrote the famous book, One Up On Wall Street ( Simon & Schuster ). The book was a hit and was embraced by many. From a Seeking Alpha article (South, 5...
  • How to Invest With Conviction

    This investor looks for "game changing" trades by watching the world around him. He reads magazines, goes to movies, and listens to what his friends and neighbors are passionate about. And then he invests in it before Wall Street invests in...
  • Drivers of Financial Markets: Fear and Greed

    The CNN Fear and Greed index is currently sitting at neutral. According to CNN Money (16 Oct 2015 ): [Fear] is quickly fading on Wall Street. The Dow is at a two-month high and the S&P 500has clawed its way back above the 2,000 threshold. Furthermore...
  • The Power of Compounding on Philanthropy

    This interesting interview with Warren Buffet talks about philanthropy--how and when to give. Giving too soon means having less to give later in life and giving up the power of compounding. However, given the needs in the world, perhaps waiting is not...
  • Financial Alpha and Beta Explained

    This short video from the Financial Times gives a very quick overview of how investors try to beat the market. Traditionally, investors chased " alpha " or the return that is above what would be expected by the market itself (also called "excess...
  • The How and Why of Investing in Commodities

    The commodities markets are among the oldest in the world. Long before we had stocks and bonds, civilization traded in agricultural products and precious metals. Today, investors choose commodities to diversify their investment portfolios. And by "diversify...
  • Behavioral Challenges: Understanding Our Money Mistakes

    Do you know people who insure their iPhones but do not have adequate life insurance? Do you know people who buy lottery tickets, but really can't afford to? Do you know people who have purchased more house than they should? This TED talk...
  • Active Managers Continue to Underperform

    For years, finance literature has told us that on average, most investors are average. So active investment managers are naturally going to underperform because average performance coupled with high management fees equals low returns. And that's...