Michael Mauboussin – Active Asset Management [Invest Like the Best, EP.02]

In this episode, Michael Mauboussin and I discuss everything about asset management: the state of the industry, the active investment process, and Michael’s  simple but genius “input/output” method for daily life. This is a full seminar on asset management. It was an awesome conversation. Be sure to check out all of Michael’s research and his…

Jeff Gramm – Activist Investing [Invest Like the Best, EP.01]

Welcome to the first episode of Invest Like the Best! You can subscribe here: Itunes Stitcher Google Play TuneIn My guest today is Jeff Gramm. Jeff is the founder and portfolio manager at Bandera Partners, an Adjunct Professor at Columbia Business School, and the author of Dear Chairman: Boardroom Battles and the Rise of Shareholder Activism….

Books That Changed Your Life

A fun question to ask yourself: what books have you read that literally changed your life? I read a lot of great books, but when I went through my list of about 1,000, there were only 8 (!!) that rewired me so much that I can say I was changed after reading them. These books…

Growth Without Goals

I. Four years ago, soon after learning that my wife was pregnant with our first child, I was sitting on the Metro-North commuter train, reading. I was thinking about being a father; specifically, I was wondering what it would take to be a great father. Unconditional love and support seemed obvious. Patience too. But what…

Peculiar Stock Leadership in 2016

The below exploration of market returns in 2016 was written by my colleague Travis Fairchild. Bank of America started tracking the performance of active managers in 2003, and 2016 has—thus far—been the worst year on record for active managers: only 18% of large cap managers outperforming the Russell 1000 through June 30th.[1]   The Russell 1000…

Full Reading List

In April, 2014, I decided to start emailing my friends book recommendations every month. After two years, hundreds of books, and seven thousand new readers, I’ve finally pulled the full list together. This is the full archive of everything I’ve ever recommended. This list is meant to foster a community of book lovers. Share it!…

The Market’s Buyback Yield Is Not A Timing Tool

Almost nothing written about investing is actionable. It’s why I’ve read less and less on investing and tried to instead do more and more work myself—to reach my own conclusions, conclusions which can be applied over long investing horizons. The action most appropriate is almost always: do nothing. One thing that is written about a lot…

Two Star Managers and the Wheel of Fortune

Here is an idea that is doomed to fail: a podcast or interview series with 2-star fund managers. We hear about strategies, portfolio managers, and asset classes after the fact—when they’ve delivered performance numbers that make our mouths water. We cannot blame the financial complex for focusing on strongest returns: it leads to more interesting…

Shrinkage vs. Growth

The most interesting story in the history of capital allocation was the rapid growth and then steady shrinking of Teledyne, a conglomerate formed by Henry Singleton in 1960. Teledyne spent the 60’s growing through acquisitions—130 companies in total, bought for twelve times earnings or less—funded in large part by the issuance of new shares of…

Alpha or Assets

More and more investors are buying “factor” based strategies which invest using measures like valuation and low volatility, but the most popular strategies are applying factors in the wrong way. Strategies should be built for alpha, not scale—but the asset management industry has gone in the opposite direction. Most factor-based strategies—commonly called Smart Beta—have hundreds…