Words of Advice: Letter to My Grandchildren

This article originally appeared in the October 2013 issue of the AAII Journal. Legendary investor Charles Ellis has spent 50 years working closely with nearly 100 investing organizations, knowing many of the world’s most effective and successful investment managers, teaching the advanced investment courses at both Yale and Harvard, writing over a dozen books and…

 

The Danger of Getting Out of Stocks During Bear Markets

This article originally appeared in the May 2014 issue of the AAII Journal. One of the biggest risks to investors’ net worth is the portfolio decisions they make. Failing to adhere to an appropriate long-term strategy has a significant damaging impact on wealth. Since wealth is generated from the compounding of returns, actions that severely…

 

How Much Small Cap Should Be in Your Portfolio?

This article originally appeared in the July 2014 issue of the AAII Journal. It may come as a surprise to those who have placed their nest eggs in an S&P 500 index fund, or an actively managed version thereof, that they are actually making a decision to exclude a significant portion of the equity universe. Academic…

 

The Three Pockets Approach to Investing

This article originally appeared in the May 2014 issue of the AAII Journal. The secret to investing successfully is no secret; many investors have heard it already. The problem is that too many investors still do not practice it. Simply put, if you invest over a period of time, properly diversify across a variety of asset classes…

 

Keynes’ 10 Keys to Wealth

This excerpt is from “Keynes’s Way to Wealth,” by John F. Wasik and originally appeared in the March 2014 issue of the AAII Journal. If you are not an AAII member and want to gain access to all the benefits of membership, simply take a risk-free 30-day Trial AAII Membership and start becoming an effective manager of your own…

 

Real Returns Favor Holding Stocks

This article originally appeared in the August 2014 issue of the AAII Journal. Jeremy Siegel is a professor at the University of Pennsylvania, the senior investment strategy advisor to WisdomTree Investments and the author of the best-selling book, “Stocks for the Long Run” (fifth edition, McGraw-Hill, 2014). He spoke to about the importance of maintaining a significant allocation…

 

12 Steps to Drive Emotions Out of Investing Decisions

This article originally appeared in the September 2014 issue of the AAII Journal. There is a large body of research showing that investors depend on emotions and anecdotal information when making decisions. You are no doubt aware of this and are familiar with the resulting cognitive investment errors. There have been numerous articles dealing with how investors can…

 

Nobel Laureate Advocates Allocating by Market Weight

This article originally appeared in the September 2014 issue of the AAII Journal. William “Bill” Sharpe is the STANCO 25 Professor of Finance, Emeritus, at Stanford University, recipient of the 1990 Nobel Prize in Economic Sciences and a co-founder of Financial Engines Inc. He also authors the Retirement Income Scenarios blog (RetirementIncomeScenarios.blogspot.com). He spoke to AAII…

 

How Can You Make Sure You Don’t Run Out of Money in Retirement?

This article originally appeared in the September 2014 issue of the AAII Journal. You’ve spent a lifetime investing and planning for your retirement. Utilizing intelligent cash flow strategies during your retirement will help you enjoy it. What factors do you need to take into account? the need for real, not nominal, cash flow (i.e., an…

 

Proxy Voting for Individual Investors

This article originally appeared in the July 2015 issue of the AAII Journal. Contrary to what many believe, significantly increasing the proxies voted by informed individual investors would appreciably improve the corporate governance landscape. Why not just sell shares of poorly governed corporations? Selling the “bad” stocks may help with individual investments in the short-term, but…