Albert Einstein once said, “Everything should be made as simple as possible, but no simpler.” The investment industry, however, seems to subscribe to a different motto: “Make things as complicated as possible, and then complicate them a little bit more.” Wall Street salespeople talk about alpha (a [...]
A careful look at private funds
When asked why he robbed banks, Willie Sutton replied, "because that's where the money is." Similarly, private funds are attractive to high net worth investors because they carry the potential for outsized returns - that's where the money is. Several factors explain this potential. Among them: [...]
Dispatch from the doctor’s office
When it comes to important financial decisions, why is it that sometimes we are able to move quickly, while at other times we feel stuck, unable to take action? To help answer this question, I'd like to share an experience I had a while back, at the doctor's office. Dr. R., as I'll call him, is a [...]
Starbucks or Dunkin’?
A common expression is that “there are two kinds of people in the world...” There are Republicans and Democrats. Right-brained and left-brained. Yankees fans and Red Sox fans. And, of course, Starbucks people and Dunkin' Donuts people. In Boston, where Dunkin' was founded, this is a particularly [...]
A four-part litmus test
Investing doesn't need to be nearly as complicated as Wall Street makes it out to be. In fact, the basic principles are really very straightforward. And, while there are a thousand different ways to evaluate investments, I recommend starting with just four: 1. Funds with low costs, [...]
