Ep 67: Beyond Diversification: Terminal Wealth Dispersion

Putting the odds of investing and retirement success in your favor should be a given as is being diversified. But what does diversification really mean? Ten stocks? One hundred stocks? Two asset classes or ten?

Diversification is not just minimizing variability or owning the S&P 500. It’s also reducing the risk of underperformance by owning the stocks and assets classes that will deliver higher returns and reducing the variability in dollar outcomes from your portfolio. Continue reading

Top-Dog Investments & The Winner’s Curse

When you are shopping for a new car, you compare price and attempt to get the best value for your dollar. Same too for real estate purchases or about anything else you can think of. Well, except investments. Continue reading

Ep 66: Think in Terms of Range, Not Averages

If your head is in the freezer and your feet in the oven, on average you may feel quite comfortable despite suffering from two extremes. Averages are commonly used to discuss investment returns, but they are an oversimplification … especially when it comes to investment expectations. Continue reading

Ep 65: When To Sell An Underperforming Investment

Inevitably you will have some investments perform better than others in your portfolio. A normal, human response is to seek pleasure and avoid pain or sell the underperformer and buy what has done well. But does that make investing sense? Continue reading

Dividends Slashed In The Time of COVID

Many investors view dividend payouts as a reliable source of income. However, many have been surprised to see lower-than-expected dividend payouts following the onset of the coronavirus pandemic. Yet, historical data show that changes in dividend policy are common, especially … Continue reading