Insights on markets, emergent trends, history, innovation, risk management, global economics, strategy, policy, and other topics that catch our attention. Inspired by ongoing research, conversations and events. Written and edited by Osbon Capital Management and published every Thursday morning.
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The Simple Power of a Favor
From time to time, we write about things that have nothing to do with investing… The Simple Power of a Favor Favors are magic. They solve problems and open doors. They demonstrate loyalty and concern. They strengthen relationships. Simple favors can mean so much for the receiver, but they can also pay huge dividends for the sender. Last week a…
Four Behaviors That Generate Alpha
Last week we discussed Vanguard’s research showing how an advisor can deliver measurable “alpha” – that is, above average performance. This week we dig deeper with four examples of what that looks like. Vanguard identified “behavioral coaching” as the area of where advisors can and should add the greatest value. The research pegged the behavior benefit at around 150 basis…
The Advisor as Alpha
There’s a lot of talk these days about alpha and “smart alpha.” Alpha is basically return in excess of market performance. It’s a lot like happiness – everybody feels they deserve it, but it’s not been so clear where it comes from or how to get it. Fortunately, there’s evidence now about how to get alpha. Vanguard, major ETF provider…
Are High Frequency Traders Ripping You Off?
High Frequency Traders: Fight Back As author Michael Lewis reminded us this week with the release of his book, Flash Boys, high frequency traders (HFTs) are systematically sucking value out of the markets. Are you a victim, and what can you do about it? First, how does this work? Think about it like this: You call ahead to the supermarket…
5 Ways that Indexing Cuts Taxes
April 15th has to be one of the least liked days of the year. Not that paying taxes is a bad thing, but paying too much in taxes is. If you have a nagging feeling that somehow you’re paying unnecessary taxes, consider five ways that indexing would cut the tax tab. 1. Buy and hold – The prime source of taxes on…
Drones, bitcoins on wheels, and the rebirth of privacy
What happens when 75,000 professionals at SXSW (South by Southwest) from 74 countries with backgrounds in music, technology, and film get together for 10 days in Austin, TX? Quite a lot! Normally we write about investing but this week we’ve got a very different topic. I spent a week at SXSW 2014 and here are some of my favorite highlights. Intellectual…
Cost Control Calculator
Small expenses can seem inconsequential in the short run, however inefficient investments with higher fees and poor tax management can take a big bite out of your portfolio in the long run. Focus on the things you can control – fees and taxes. And use our Osbon Cost Control Calculator (below) to see just how much these small improvements add…
America’s greatest stock picker says “index”
Warren Buffett’s annual shareholder letter – always anxiously awaited by shareholders and others – was published last Saturday. As arguably the greatest stockpicker in history, (Berkshire Hathaway book value has compounded at about 20 percent annually since 1965) why does Mr. Buffett use the letter to recommend that investors take the exact opposite approach via indexing? We can always count…
Good guy. Bad guesses.
Byron Wien is a brave man. Every year the Vice Chairman of Blackstone Advisory Partners announces 10 predictions, ranging from domestic policy developments and global power struggles to market and economic performance. How’d he do in 2013? In a word, awful. By our count, seven of his predictions related directly to investible markets. One of the seven picks – big…
