Zweig on Buffett and Bitcoin

Author and columnist Jason Zweig says that successful investors–such as Warren Buffett and Charlie Munger–can set aside emotions, according to a recent CNBC article. At the recent Evidence-Based Investing conference in New York, Zweig mentioned Berkshire Hathaway’s Buffett and Munger as among the top tier, adding that they are “inversely emotional and are able to turn emotions inside out,” and “acutely sensitive to the fear inside other people” which they then take advantage of. With… Read More

Are You Prepared for a Stock Market Crash?

Wall Street Journal columnist Jason Zweig takes us back 30 years to Friday, October 1987 when the stock market fell “a record 108.35 points on unprecedented volume of nearly 339 million shares.” He shares a story from famed investor James O’Shaughnessy who, thinking that the selling was “completely overdone” feared that sticking with a bearish bet (having made a “five-figure” bet through buying stock-index put options) would prove costly when stocks bounced back. So, shortly… Read More

Zweig: Income Investors Shouldn’t Get Desperate

Investors feverishly searching for yield in today’s market—”with stocks at record highs and the income on bonds not far from record lows”–are showing signs of desperation, according to columnist Jason Zweig of The Wall Street Journal. Zweig argues that as long as markets continue to show decent performance at “little apparent risk, the more investors come to believe that high returns must be a kind of entitlement.” He cites results of a recent survey in… Read More

Zweig: Cheaper Share Prices Can Be an Illusion

When ETF shares appear to be trading at a discount to the index of stocks they hold, according to a recent article in The Wall Street Journal by columnist Jason Zweig, “the apparent bargain is an illusion.” “Stock indexes, and by extension the funds that are based on them, are averages,” writes Zweig, adding, “Investment regulators say that fund companies are free to calculate and report an average valuation any way they wish, so long… Read More

Jason Zweig: Prepare Rather Than Worry About Increased Volatility

The low volatility currently seen in the market is causing concern for many portfolio managers, according to a recent Wall Street Journal article by Jason Zweig. Zweig says many investors share the view of portfolio manager Brian Singer of William Blair & Co. who argues: “The global market’s ongoing low volatility should be unsettling for investors.” And, while Zweig conceded that the VIX (CBOE Volatility Index) is “brushing lows set nearly a quarter-century ago,” he’s… Read More

Zweig Talks Color and Investor Behavior

New research shows that color can have a significant influence on investor behavior, writes Jason Zweig in a recent Wall Street Journal article. According to Zweig, researchers have found that “seeing red has a drastic effect on how people view investments.” One part of the research, says Zweig, shows that when investors looked at charts of stocks in the S&P 500 index with falling prices and predicted how the shares would perform in the subsequent… Read More

Zweig: The Challenge of a Smaller Stock Pool

For stock pickers, choosing among a smaller universe of stocks is much more difficult, writes Jason Zweig in a recent Wall Street Journal article. Zweig cites data from the University of Chicago’s Booth School of Business showing that the number of publicly traded equities has dropped from 7,355 in 1997 to the current level of less than 3,600. The decreased number of stocks, writes Zweig, is attributable to regulatory tape (that makes it tougher for smaller… Read More

Small Companies on the Decline, says Zweig

The number of publicly-traded companies has declined by half over the past two decades, with most of the decrease attributed to the smallest companies, writes Jason Zweig in last week’s Wall Street Journal. Zweig questions, however, whether this is making it more difficult for “stock pickers to beat the market and for investors to forecast future returns from past data,” an assertion the columnist made in an earlier article. Zweig cites comments from AQR partner… Read More

Zweig: Overseas Stock Investment Could Have Significant U.S. Exposure

A new study in the Financial Analysts Journal finds that investors can improve returns by buying international equities based on where they do most of their business rather than where they are headquartered. This according to a recent Wall Street Journal article by Jason Zweig. Zweig offers several examples including Infosys, the second-largest holding company in many India funds, which does “more than 60% of its total sales in North America and only 3% in its… Read More

Jason Zweig: Use Simple Tests Before Investing in a Quant Fund

In a recent article for the Wall Street Journal, Jason Zweig offers some tips on how an investor can devise his own quant strategy. “Perhaps it is cheaper to learn from the quants than to hire them,” he argues. Zweig shares findings of a Duke University group of researchers that found, during the period from 1996 to 2014, “systematic funds (which describe themselves with such words as ‘algorithmic’, ‘computer-driven’, or ‘statistical’) performed about the same… Read More