The Evidence-Based Investor

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

Short-term bias is putting Britons at serious financial risk — report

Posted by Robin Powell on January 19, 2018

“Waiting helps you as an investor,” Charlie Munger once said, “and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.” Unfortunately, it seems, very few of us were born with that particular gene, and perhaps there’s something about the […]

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Francis Galton and the iron rule of markets

Posted by Robin Powell on January 16, 2018

“Reversion to the mean,” Jack Bogle once said, “is the iron rule of financial markets.” And if you understand nothing else about how investing works, grasping this one simple concept will give you a better chance of succeeding at it than supposedly more sophisticated investors. In the investing sense, mean reversion is the theory that, […]

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#SFTW: Why do UK advisers still love active funds?

Posted by Robin Powell on January 12, 2018

It seems like yesterday that we were welcoming in 2018, and here we are, fast approaching the end of the second week of the year already! There’s plenty going on. If you haven’t been on the TEBI lately, here’s what you’ve been missing.   Meh. Active management remains the default investment strategy for UK advisers […]

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Stats that shame the UK advice profession

Posted by Robin Powell on January 12, 2018

Three years ago I had some email correspondence with a fellow journalist, now working overseas, about why active funds were so utterly dominant in UK asset management — compared, for example, with the United States. “The main problem for the UK,” my colleague said, “is the lumpen mass of IFAs. The entrenched interests in favour of […]

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