“My goal is a portfolio I can justify to myself today, based on the information available now. Because unexpected returns will dominate the outcome, I won’t judge my choice on what the portfolio delivers tomorrow.” — Kenneth R. French
From the Archives: The Arithmetic of Active Management (1991)
“The best way to measure a manager’s performance is to compare his or her return with that of a comparable passive alternative. The latter — often termed a ‘benchmark’ or ‘normal portfolio’ — should be a feasible alternative identified in advance of the period over which performance is measured. Only when this type of measurement is in place can an active manager (or one who hires active managers) know whether he or she is in the minority of those who have beaten viable passive alternatives.”
Are All Investment Portfolios the Same?
Business Insider – 5 daily money habits that keep self-made millionaires wealthy, according to financial advisors who know
“[Millionaires] invest in equities and debt that are low risk with a high probability of reasonable income. They become much more focused on whether they are going to get their capital back than doubling it or tripling it in the next 10 years.” – Guy Baker
DIMENSIONAL – The Federal Reserve
Professor Eugene Fama and David Booth discuss the Federal Reserve’s perceived impact on market interest rates.