Skarbeck: Being a company director can be a lucrative gig
As another annual report season arrives, the compensation tables in proxy statements clearly show that it pays to be a director of a public company.
Investing Column
Articles
Kim: How Amazon bullied its way into retail domination
In a 2013 cover story, Fortune magazine described Amazon as a “brass-knuckled battler for every penny of competitive advantage.” As state treasurers can attest, that portrayal is both well-deserved and important to understanding the rise of Amazon.
Skarbeck: Fannie Mae, Freddie Mac roil big investment firms
In 2012, Fannie and Freddie started making money as the housing market rebounded and losses in their mortgage portfolios reversed. By the end of this month, the firms will have returned $203 billion to taxpayers. In the meantime, several hedge funds began acquiring both the preferred shares and common stocks of Fannie and Freddie.
Kim: Investors must play to win to reach long-term goals
Whether an athletic contest or the “game” of investing, many factors determining whether we win or lose are beyond our control. However, we can control how we approach the game and respond as events unfold, which can be just as important.
Skarbeck: Tactics have proliferated to gain edge in trading
Critics are divided on whether Regulation NMS has achieved its stated purpose, or whether it has produced unintended consequences.
Kim: Buffett’s farmland buy illustrates valued lessons
Warren Buffett’s annual letter to shareholders in Berkshire Hathaway’s annual report always contains timeless advice, useful in good times and bad. He told of two non-stock investments he made decades ago. Though relatively small and insignificant to his net worth, they illustrate important concepts.
Skarbeck: Trendy ‘quant’ hedge funds have run their course
For those who feel they missed capitalizing on the bull market in stocks, consider that an elite fraternity of heralded money managers actually lost money for their clients over the past three years.
Kim: Sports wagers illustrate concepts of investing
Sports betting wouldn’t be what it is today without an innovation by Charles K. McNeil. McNeil’s strong analytical ability enabled him to earn a living as a professional gambler, or “sharp.” His innovation was the “point spread.”
Skarbeck: Analysts’ quarterly focus can lead investors astray
Wall Street analysts are notorious for their short-term attention spans. This leads to undue scrutiny of a company’s quarterly figures and can lead to poor decisions by investors.
Kim: Lessons from global crisis painful but also valuable
Value investing can look foolish short term, but usually pays off long term.
Skarbeck: Decline in listed stocks not likely to continue
The number of traded stocks has been shrinking, but as both the economy and stock market continue to recover, private equity firms will seek to list their holdings as IPOs and the number of publicly traded stocks may once again expand.
Kim: Investors need not accept mediocrity of index funds
We’re old school investment managers and think having the objective of underperforming the market by a little bit is the very definition of mediocrity. We reject the notion it’s foolish to even try to outperform.
Skarbeck: Next wave of regulators needs to keep reforming
Since last year, there have been several personnel changes in key financial and regulatory positions in the federal government.
Kim: ‘David and Goliath’ offers lessons for business, life
At some point, you’re likely to face a competitor with vastly superior size, strength and resources. You’re the underdog, but if you’re willing to wage an unconventional battle, outwork your opponent and don’t fear social disapproval, victory can be yours.
Skarbeck: Market has way of looking beyond today’s headlines
The stock market has a remarkably perceptive ability to see past inconsequential issues that sometimes dominate the investment environment and instead peer ahead into the future.
KIM: New financial bet involves tickets to Super Bowl
Do you think the Indianapolis Colts will play in Super Bowl XLVIII on Feb. 2? Would you love to join them, but don’t want to shell out thousands of dollars and multiples of face value on StubHub? You can purchase an option granting you the right to purchase a ticket to the Super Bowl at face value, if the Colts qualify.
Skarbeck: There are no substitutes for buying assets cheaply
The recent white paper issued by investment firm GMO’s James Montier ridicules some of the “innovations” that are popular in the investment field. His criticism addresses concepts like smart beta, risk parity, and real asset inflation hedges.
Kim: Investors must sidestep unnecessary fund taxes
Mutual funds must conform to U.S. tax law to maintain their status, making this a tricky time of year for fund investors holding their shares in taxable accounts (i.e., not in 401(k) or IRA accounts).
Skarbeck: Stocks still the best bet among investor choices
Many observers are raising warning flags that stocks are overvalued, and some even say a market bubble is forming. A review of the evidence, in our opinion, doesn’t support their alarm.
Kim: Save your riskiest bets for play-money portfolio
Having a small “play money” portfolio can help fulfill your fantasy of making a quick killing without endangering your retirement funds.