Over Time, High Dividend Stocks Outperform Low Dividend Stocks

Posted Posted in Investing

Investors new to stock analysis might intuitively think that high dividend stocks are “better” than low dividend stocks. After all, if you were to invest $10,000 into a piece of a company, wouldn’t you prefer to own a company where the share of profits paid to you in cash were $400/year rather than $100/year, or […]

Performance of US Profitable Value vs Growth (With Low Profits), 1963-2020

Posted Posted in Investing

Not a month has passed in the past three years when I haven’t had at least some conversational debate on the value vs growth styles of investing. I often emphasise the importance of not seeing value as the opposite of growth (it is just as possible to buy growth at a reasonable valuations as it […]

JP Morgan Large Cap Growth vs Small Cap Value 3×3 Grid, July 2020 edition

Posted Posted in Investing

One tweet I found worth sharing today was this one by @NateGeraci showing JP Morgan’s 3×3 grid of past performance and current P/E ratios of large caps vs small caps and growth vs value stocks. Fans of Morningstar will be very familiar with the 3×3 style grid idea from there, and I have also written […]

An easier way to find “the next Microsoft”

Posted Posted in Investing

I’ve never considered myself the type of investor that tries to look for “the Next Microsoft”, but by that, I mean I don’t try and look for seed stage start-ups thinking they will be the one that can beat the odds and grow from zero to billions with seemingly little resistance. Over the past 10 […]

The Random Stock Portfolio Experiment

Posted Posted in Investing

One idea that many investment thinkers have tossed around for many years, even long before the publication of Burton Malkiel’s classic but controversial “A Random Walk Down Wall Street”, is the idea of constructing stock portfolios by pure random selection. The idea has been tested and narrated many ways, with perhaps the most famous image […]

Dividends vs Buybacks Since 1982

Posted Posted in Investing

Although I have long considered myself a fan of “dividend investing”, I am just as aware that not all dividend dollars are equal in quality, and so often look at “dividend alternatives” as part of the “total shareholder yield” picture. “Total Shareholder Yield” often refers to the sum of ways profitable companies can return cash […]

Stock Markets by Country 1899 vs 2019

119 Years of Investment Returns, According to Credit Suisse

Posted 1 CommentPosted in Charts, Investing, Wealth Management

This morning’s ferry read is the Credit Suisse Global Investment Returns Yearbook 2019, for which I have to thank this excellent Twitter thread by Cambria’s Meb Faber for pointing out. Two of the charts I found worth a screenshot and share here show shares of global stock markets have changed since 1900 by country (header […]

Long-term, valuation is all that matters

Posted Posted in Investing

I recently found some charts on this tweet thread worth checking against some of my earlier posts on investing with a value tilt. These are similar to my earlier chart about forward 10 year investment returns versus on CAPE ratio, and can be summarized in the title of the first chart “Long term, valuation is […]

How Hedge Funds Performed

How Hedge Funds Performed in the 2010s

Posted Posted in Investing

While putting together reviews of the past decade, I have looked at how emerging markets have performed vs developed markets, how bonds performed versus small and value stocks, and the Dow vs the Nasdaq. Here, I also want to look at how hedge funds performed over the past decade. First, let’s look at a traditional […]

Turbulence vs damage

Turbulence vs Damage in Stock Investing

Posted Posted in Charts, Investing

I have no experience piloting airplanes, and admit there have been several times as a passenger that I have been afraid of turbulence. What helps me stay calm in turbulent flights is remembering descriptions I heard from at least one pilot interview on how insignificant most turbulence is compared with how high the plane is […]