Investing

[ad_1] Editor’s Note: Our Enterprising Investor podcast features intimate conversations with some of the most influential people from the world of finance. This post highlights some key talking points from a conversation between the show’s host, Mike Wallberg, CFA, MJ, and Campbell Harvey, PhD. In this episode of Enterprising Investor podcast, […]

[ad_1] What follows is a hypothetical conversation between two fictional investment professionals, US-based Bob Smith and his colleague Sandra Mueller, who works in Frankfurt. Their topic: international equity investing and diversification. Bob Smith: Hi Sandra. How are You? Sandra Mueller: Hi Bob. Good, thank you. All is well here in […]

[ad_1] Many of the businessmen I know are well-versed in economics, but none uses the science in their daily work. No other science is so thoroughly ignored by its practitioners. The reason is that economics went astray by borrowing ideas from physics. This mischaracterizes commerce as a “closed equilibrium system.” […]

[ad_1] “Every system is perfectly designed to get the results it gets.” — Attributed to Paul Batalden Dan Heath credits the inspiration for his latest book, Upstream, to a single parable ascribed to the sociologist Irving Zola. “It goes like this,” Heath, a bestselling author and senior fellow at Duke […]

[ad_1] Market risk is the potential for losses in securities due to fluctuations in market factors like interest rates, currency values, FX/commodity spot rates, and equity prices. These risks are inherent in all traded securities, from corporate bonds to commodities. Each type of security may face multiple risks simultaneously, making […]

[ad_1] Thursday, 18 June 2020, is a day James H. Freis, Jr., CFA, the founder of Market Integrity Solutions, will never forget. Overnight, the mild-mannered American was thrust into the center of what would become the largest financial scandal in the history of modern Germany: Wirecard’s fall from high-flying fintech to the […]

[ad_1] Last month, I had the privilege of participating in a lively podcast discussion with two fellow women in investing, Jane Barratt, who serves as chief advocacy officer of the fintech MX, and Meredith Jones, author of Women of The Street: Why Female Money Managers Generate Higher Returns. Our conversation, […]

[ad_1] Dividends and buybacks are poised for a comeback this year. How can analysts gauge whether they contribute to a firm’s intrinsic value? Corporations responded to the onset of the COVID-19 pandemic by slashing costs and raising liquidity. In the United States, non-financial companies now hold $2.6 trillion in cash, […]

[ad_1] Michael Lewis can “untangle complex subjects like few others.” And few topics qualify as more complex — or more tragic — than the US response to the COVID-19 pandemic, the subject of his latest book, The Premonition: A Pandemic Story. At the heart of Lewis’s narrative is a central […]

[ad_1] Investors often choose diversified, multi-factor strategies to overcome the limitations of traditional cap-weighted benchmarks. These benchmarks are overly concentrated on companies with the largest market capitalization and expose investors to idiosyncratic risks that are not rewarded over the long term. Moreover, cap-weighted benchmarks incorporate no explicit objective to capture […]