The Evidence-Based Investor

No sales agenda. No marketing spin. Just the evidence.

Successful investing begins with knowing yourself

Posted by Robin Powell on December 15, 2017

“Rip Van Winkle would be the ideal stock market investor,” Richard Thaler, the Nobel Prize-winning behavioural economist, once pointed out. “Rip could invest in the market before his nap and when he woke up 20 years later, he’d be happy. He would have been asleep through all the ups and downs in between.” The problem, […]

Continue reading

Eggs, baskets and the wisdom of Solomon

Posted by Robin Powell on December 12, 2017

Harry Markowitz is one of the most intelligent people — if not the most intelligent person — I’ve had the pleasure to meet. But it’s always struck me that the insight for which he was awarded the Nobel Prize was, well, not exactly earth-shattering. In a nutshell, prior to the work that Professor Markowitz did in […]

Continue reading

Putting an actual value on advice is impossible

Posted by Robin Powell on December 11, 2017

These days we’re obsessed by value — not just businesses, but individuals too. We all want to make the most of the limited financial resources at our disposal, and quite right too. There is however a danger in constantly looking at value in purely monetary terms. In other words, how much will it save me, in […]

Continue reading

Is factor investing worth it?

Posted by Robin Powell on December 8, 2017

Broadly speaking, evidence-based investors fall into three categories when it comes to the type of funds they prefer to use. First there are traditional indexers — the Bogleheads, if you like — who love the simplicity of market-cap weighting. Second, there are those who prefer factor-based investing — in other words, tilting their portfolios to risk factors which […]

Continue reading