The connection between Wall Street and Main Street is a quirky one. For the most part, Wall Street serves Main Street well. Investment banks, commercial banks and insurance companies match borrowers with lenders and keep the economy running. However, this...
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Investing is much different than most other endeavors in life. Usually, when we want to accomplish a goal, we have to do more. If you want to lose weight, exercise more. If you want a promotion at work, stay later...
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I’m putting my nerd glasses on for a bit so bear with me… Reflexivity is a social theory dealing with the circular relationship between cause and effect. It occurs when the observations or actions of observers in a social system...
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I’ve never been shy about my eclectic taste in music so I have no shame in admitting I own the Ultimate (The Very Best of Prince) album and I’m listening to it right now (respect). Prince is a legend. His Purple Rain...
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“It’s useless to lecture a human.” – Rick Riordan Human beings are stubborn. It comes naturally to us. Stubbornness is organically ingrained in our existence. How often do you catch yourself doing something that you know is likely to have...
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Nearly every culture has some kind of festival to mark the coming of spring. These occasions, which anthropologists have dubbed “renewal festivals,” typically involve some sort of organized mayhem. People play pranks on friends, wear disguises, or somehow reverse the...
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I read a great article this week that tackled the question as to whether active fund managers will have an easier time outperforming the market now that the trend towards passive investing is so strong. The article points out that...
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David Einhorn, founder of Greenlight Capital, has done very well for his investors. Over the past two decades, he has delivered annualized returns of nearly 20%. The past year has not been so glamorous though. At the end of...
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Last week I discussed how conflicts of interest tied to the sales process are important considerations to make before purchasing any financial (or non-financial) product. While sales incentives are rather obvious, there are many more subtle and less frequently debated...
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I believe incentives are a very powerful thing. Understanding how the structural incentives of the marketplace affect the pieces and players involved is a must. Over the next couple of weeks, I’ll be discussing some of the curious incentives I...
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