Economic Growth and Equity Returns

I found the following article from Dimensional Fund Advisors eye opening and thought provoking. I’d like to hear what you think. A relevant question for many investors is whether their view of economic growth should impact how they invest. August 2016  Opinions about future economic growth often differ across market participants. For example, in a survey of more than 60 economists conducted by the Wall Street Journal in June 2016, estimates of US GDP growth in 2017 ranged from 0.2% to 3.7%.  A relevant question for many investors is whether their view of economic growth should impact how they invest. In this regard, they may […] Read more »

The Warren Buffet Way How He Really Invests For Those He Cares Most About

The following commentary from Fred Taylor is certainly worth a read I always read, with interest, the annual Berkshire Hathaway annual report to shareholders (www.berkshirehathaway.com). Aside from the “obvious” financials that one finds in all annual reports, it highlights the folksy style that Buffet writes in, is very short on typical corporate financial obfuscation and very long on common sense (more on this aspect later). I highly recommend to all a visit to their website and taking some time to peruse the report to absorb not only some of it’s flavor, but also the illumination on the technique and rationale that he and his partner, […] Read more »

The Devil Wears Nada

by Jim Parker Vice President, DFA Australia, Limited The global fashion industry is fickle by nature, pushing and then pulling trends to keep hapless consumers forever turning over their wardrobes. Much of the financial services industry works the same way. Fashion designers, manufacturers, and media operate by telling consumers what’s in vogue this year, thus artificially creating demand where none previously existed. What turns up in the boutiques is hyped as hip by the glossy magazines to make you feel like you “have” to buy it. Likewise, much of the media and financial services industries depend on fleeting trends and built-in obsolescence to keep investors […] Read more »

Watch Out for “The Golden Ticket Trap”

by Jim Parker, Outside the Flags Vice President, Dimensional Fund Advisors In a popular children’s story, the young hero pins all his hopes on finding one of a handful of “golden tickets” hidden among millions of candy bars. It seems many people approach investing the same way. The notion that the path to long-term wealth lies in locating secret and previously undiscovered treasures in the global marketplace of securities is one regularly featured in media and market commentary. One magazine, for instance, runs a feature called “Fund Managers’ Secret Stocks,” referring to supposedly “bargain” stocks the pros keep hidden. (How the stocks can be secret […] Read more »

With $16.7B in new money, a banner year for Dimensional Fund Advisors

DImensional Fund Advisors

By Jason Kephart | October 28, 2013 – 1:26 pm EST Dimensional Fund Advisors is on pace for its best year ever as the growing acceptance of factor investing attracts record gobs of cash. DFA has had $16.7 billion of net new deposits through the first three quarters, more than the company has received in any previous calendar year, according to Morningstar Inc. The company’s funds, which primarily are sold through financial advisers, trail only indexing giant The Vanguard Group Inc. in terms of sales so far this year. Not too shabby for the eighth-largest mutual fund company. Since 2010, DFA has leapfrogged OppenheimerFunds Inc. […] Read more »

A Banner Year

The following commentary was forwarded to me by my friend and fellow coach, Fred Taylor:   There really isn’t any reason to brag about any securities firm having a “banner year” when the market is in an upward trend, as it has been, over the last year (and beyond). However, what is particularly interesting is what this particular banner year has to tell us about emerging trends in the investing universe.   Most who have been with us since the early nineties know that we made an academically based, strategic decision to change our investment philosophy to one that was based upon a passive approach […] Read more »