The Evidence-Based Investor

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

The problem with performance-based fees

Posted by Robin Powell on November 28, 2017

There’s never been a better time to be an investor. Fees are coming down all the time. In most cases, the fee reductions are on passively managed funds, which were relatively very cheap already. But occasionally, thanks largely to competition from passive funds, the industry’s cutting the cost of active investing too. Today, for example, […]

Continue reading

Harry Markowitz: Why I’m writing a new book at 90

Posted by Robin Powell on November 27, 2017

I recently had the privilege of spending an hour and a half with one of the giants of financial economics. How strange, I thought, as I sat with Harry Markowitz in his local coffee and bagel shop in San Diego, to see customers shuffling past for their daily caffeine fix completely oblivious to the genius […]

Continue reading

We’re not as good as we think we are

Posted by Robin Powell on November 21, 2017

There’s a cognitive bias, widely recognised in the field of social psychology, called illusory superiority. In fact it’s been called many things — leniency error, the superiority bias and the primus inter pares effect, for example — but it’s perhaps most popularly known as the Lake Wobegon effect, named after the fictional town created by the […]

Continue reading

Every day’s Black Friday for indexers

Posted by Robin Powell on November 17, 2017

I still remember my excitement as a child visiting the Rackhams department store in Birmingham in the January sales. Being able to buy, with my own pocket money, games and toys reduced to to a fraction of the price they were before Christmas seemed almost too good be true. Of course, stores don’t wait until […]

Continue reading