Five Questions: Lessons From Finance History with Jamie Catherwood

By Jack Forehand, CFA (@practicalquant) Recency bias can be a major issue for many investors. When we analyze the probability of any event in the market occurring, we tend to rely more on the recent past than we should. That can mean that we give too much credence to the most recent year or most recent few years. But it can even go further back than that. For example, when we think about what a… Read More

Six Common Misconceptions About Factor-Based Strategies

By Jack Forehand, CFA (@practicalquant) Factor strategies have grown exponentially in the past decade. Almost every major asset manager now offers their variation of things like value, momentum, quality, and low volatility, and each of them has their case as to why their approach is better than the others. But at their core, all these strategies rely on one basic principle – that if you invest using factors, you will earn an excess return over… Read More

Five Questions:  Questioning Conventional Wisdom With Lawrence Hamtil

By Jack Forehand, CFA (@practicalquant) Anyone who reads my articles regularly knows that I am a big user of Twitter. Some of the best investors in the world regularly post to the platform and it is hard for me to describe the amount I have learned from using it. My favorite people to follow on Twitter are those who make me think about things in different ways than I currently do. One person who certainly… Read More

Where I Have Found the Most (and Least) Value Spending Money

By Jack Forehand, CFA (@practicalquant) Last week, Daniel Crosby, the author of the Behavioral Investor started a really interesting thread on Twitter that got me thinking about how I spend money and the value I get from it. In the world of investing, everything we invest our cash in is expected to produce a monetary return. But in the world of life, the best investments often produce benefits that are impossible to quantify. In his… Read More

The Lure of the Unsolvable Problem

By Jack Forehand, CFA (@practicalquant) — I was talking to someone recently who was exploring potential career options and they asked me a question that got me thinking. They wanted to know why out of all the available career options I decided to work in asset management. I gave the usual answers that many people would give to that type of question. I certainly love what I do, and being able to do something that… Read More

The Danger of Judging Decisions by Their Outcomes

Judging the quality of your decisions can be one of the most challenging aspects of investing. The process can seem simple on the surface because every investing decision you make produces a measurable result in the performance that it generates, but performance is not the obvious yardstick that many investors think it is. The correct decisions in investing sometimes don’t generate the best results. The reason is that investing is not just a game of… Read More

Five More Questions: Value Investing with Tobias Carlisle

This is Part II of my interview with Tobias Carlisle of the Acquirer’s funds, which just released its first ETF, the Acquirer’s ETF (ZIG) earlier this year. In Part I, we talked about some of the arguments against value investing and how they can be refuted. You can read that here. In Part II, we talk more about the intricacies of building a value portfolio. As a reminder, this interview was taken from a phone… Read More

Five Questions: Defending Value Investing with Tobias Carlisle

As those who read my articles know, I am a big believer in value investing. But I also understand that as a follower of value, I am prone to focusing on information that supports that belief. A while back, I tried to combat my own confirmation bias by writing an article that looked at the arguments against value investing. That article ended up being the most read article of all time on our blog. So… Read More

Five Questions: Investing in Human Freedom with Perth Tolle

The primary focus of most investors is generating returns. And that certainly makes sense given that we all have future goals we are trying to attain, and our portfolios are the major tool we have to achieve them. In recent years, however, there has been another goal that has been rising in importance. Many investors now also want to use their portfolios to express their values. They want to use them to help produce positive… Read More

Some Lessons For My Former Investing Self

By Jack Forehand (@practicalquant) One of the most dangerous games we all can play in investing is the game of looking back and thinking about what we should have done. Hindsight bias leads us to believe that we should have known all sorts of things that there was no way to know at the time, and that leads to conclusions that would have been very difficult to draw with the information that was available then.… Read More