Posts filed under “Apprenticed Investor”

Successful Investors *Adapt (*or go Extinct)

Dave Nadig of ETF.com has some very kind things to say about our latest project:

“Right now, on our home page, we have evidence of what I think is the most important trend we’re seeing in financial services. It’s not a product launch, or a clever structure or a brilliant way to make money now.

It’s Josh Brown and Barry Ritholtz launching a boutique robo advisor.

It’s not because Brown and Ritholtz are two of the smartest guys in the business (they are), or that they’re masters of new technologies and social media (they are) or even that they’re conservative, ETF-centric wealth managers (they are).

It’s because they’re the way the successful financial advisor of the future adapts.

There is lots of wisdom behind recognizing the significance of that one small word: Adapt.

That is a key insight into our so-called “secret.” The world is constantly changing, and whether its blogging or Twitter or automated software driven planning & management, being able to adapt to change is crucial:

-Investors had to adapt to the Fed’s program of QE.
-Traders have to recognize the latest research on psychology
-Money managers need to recognize the impact of HFT
-Regulators need to understand how rapidly the world is changing
-Politicians need to adapt their outmoded ideologies
-Investors now have to adapt to the end of the Fed’s program of QE.

It doesn’t matter if you are a Finch on the Galapagos Islands, or a broker-dealer, adaptation remains the key determiner as to whether you will survive or go extinct.

 

 

Source:
Secret Tool For Today’s Financial Advisors
Dave Nadig
ETF.com October 08, 2014
http://www.etf.com/sections/blog/23499-secret-tool-for-todays-financial-advisors.html

Category: Apprenticed Investor, Asset Allocation, Investing

What If You Were the World’s Greatest Stock Picker® ?

Even if you could pick huge winners, could you hold them? Barry Ritholtz Washington Post, October 5, 2014       Let’s imagine for the moment that you are the World’s Greatest Stock Picker®. You have an uncanny talent for ferreting out “the next Microsoft” — companies that are on the sharpest edge of what’s…Read More

Category: Apprenticed Investor, Investing, Psychology

World’s Greatest Stock Picker®

> My Sunday Washington Post Business Section column is out. This morning, we look at The world’s greatest stock picker? Bet you sold Apple and Google a long time ago. (Thats the print headline; online it was Why the world’s greatest stock picker would’ve ditched Apple). This is the third (and likely final) installment of…Read More

Category: Apprenticed Investor, Investing, Trading

What I learned after 30,000 posts . . .

After 30,000 posts, Big Picture blogger has figured a few things out Barry Ritholtz Washington Post, September 19, 2014     Sometime last week, I published my 30,000th blog post. This was no small accomplishment — I started the Big Picture blog back in 2003. Since then, I have published a stream of charts, investing…Read More

Category: Apprenticed Investor, Cognitive Foibles, Weblogs

What I Learned After 30,000 Blog Posts . . .

>   My Sunday Washington Post Business Section column is out. On the anniversary on my 30,000th blog post, I looked back at what I learned. That is a lot of posts over the past dozen years — The Big Picture blog was begun back in 2003. Here’s an excerpt from the column: “After more…Read More

Category: Apprenticed Investor, Psychology, Weblogs

Worlds Greatest (and Worst) Market Timer ®

Time, not timing, is key to investing success Barry Ritholtz Washington Post, August 24, 2014     Over the past month, we looked at how you would have fared if you were an uncanny stock picker who consistently beat the market by 30 percent or so (What if You Were the World’s Greatest Trader® ?…Read More

Category: Apprenticed Investor, Investing

Got Math? Odds Are, You Don’t Understand Probabilities

Last week, we discussed the problems with having poor reading comprehension and the impact that has on consuming news. This week, I want to look at the lack of math skills. America seems to becoming a dangerously innumerate society. Innumeracy is incompetence with numbers rather than words. This is a worrisome issue for the future…Read More

Category: Apprenticed Investor, Bad Math, Data Analysis, Really, really bad calls

Time — Not Timing — is Key to Investing Success

> My Sunday Washington Post Business Section column is out. As a follow up to our previous discussion of the World’s Greatest Trader®, this  morning, we look at the Worlds Greatest (and Worst) Market Timer®. As we did last time out, we assumed magical powers for our theoretical trader, giving him the ability to bottom…Read More

Category: Apprenticed Investor, Asset Allocation, Investing

Why Long-Term Investors Beat Short-Term Traders

No matter what, the long-term investor comes out ahead of the short-term trader Barry Ritholtz Washington Post, August 10, 2014   Last time, we looked at why traders are at an almost insurmountable disadvantage against investors due to short-term capital gains taxes. Many of you wrote in to note several factors that would have allowed…Read More

Category: Apprenticed Investor, Investing, Trading

Another look: A short-term trader won’t beat long-term investor

  My Sunday Washington Post Business Section column is out. This morning, we revisit the advantages the long term passive indexer has versus short term active traders. The print version had the full headline The trader can narrow the gap but won’t win, while online, it was called No matter what, the long-term investor comes out ahead…Read More

Category: Apprenticed Investor, Investing, Trading