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 10/23   The Stingy News Weekly: October 23, 2016SNW 
 10/23   Vanguard's Gerry O'Reilly and Jim RowleyIndexing 
 10/23   Sarah Ketterer on valueValue Investing 
 10/22   Let's talk about salaryStingy Investing 
 10/22   Frugality isn't what it used to beThrift 
 10/16   The Stingy News Weekly: October 16, 2016SNW 
 10/16   The trouble with 4 per centStingy Investing 

Most Recent Stingy News

The Stingy News Weekly: October 23, 2016
10/23/16 8:05 PM ESTSNW
This week we have international value, Vanguard, frugality, and more.
More SNW: The Stingy News Weekly: October 16, 2016
The Stingy News Weekly: October 9, 2016

Vanguard's Gerry O'Reilly and Jim Rowley
10/23/16 7:22 PM ESTIndexing
"This episode is a rare and fascinating look into the world's largest asset manager. My first guest is Gerry O'Reilly, who is the portfolio manager for the largest mutual fund in the world, and oversees more than $800 billion for Vanguard. My second guest is Jim Rowley, a Senior Investments Analyst with deep knowledge of indexing and ETF's. The two provide incredible insight into some of the particulars that make Vanguard and its funds tick."
More Indexing: Turning over accepted wisdom
Sharpening the arithmetic

Sarah Ketterer on value
10/23/16 2:48 PM ESTValue Investing
"Highly-rated global investor, Sarah Ketterer, Portfolio Manager of Causeway International Value Fund explains why there is still plenty of value to be found in overseas markets." [video]
More Value Investing: Berkowitz interview
12 lessons from Howard Marks

Let's talk about salary
10/22/16 8:33 PM ESTStingy Investing
"He asserts that inquiring about salaries is a social faux-pas in Canada. But it is something that been doing shamelessly for many years because the data empowers rather than impoverishes employees."
More Stingy Investing: The trouble with 4 per cent
Buyback yield

Frugality isn't what it used to be
10/22/16 8:29 PM ESTThrift
"It used to be that a fancy car or a country-club membership sufficed. But as these became available to more and more people, the acquisition of physical things has mostly taken a backseat to the acquisition of exotic experiences. Now, Westacott writes, because 'not working is in itself no longer a badge of honor,' what the economist Thorstein Veblen in 1899 called 'conspicuous leisure' is being displaced by conspicuous recreation. To describe the behavior of those who tire of this arms race, perhaps there needs to be yet a new term: conspicuous frugality."
More Thrift: Almost nothing in the bank
Save more money

The Stingy News Weekly: October 16, 2016
10/16/16 8:51 PM ESTSNW
This week we have a rocky retirement, the new math, 100 books, and more.
More SNW: The Stingy News Weekly: October 9, 2016
The Stingy News Weekly: October 2, 2016

The trouble with 4 per cent
10/16/16 5:06 PM ESTStingy Investing
"while simple asset allocations proved to be strong relative performers, the study found the 4-per-cent rule wanting when tested in international markets. Even worse, it did not include the corrosive impact of taxes, fees and other frictions investors face." [$]
More Stingy Investing: Buyback yield
Top dividend stocks of 2016

The looming pension crisis
10/16/16 4:29 PM ESTRetirement
"Guaranteeing pension returns - either before or after retirement, or both - is clearly a popular policy for both savers and sponsors. But the details are daunting, and the risks only grow as the scope of guarantees expands and more people take up the plans, testing the generosity of sponsors - and the taxpayers who back them."
More Retirement: Retirement glidepath
Putting it all on red

Turning over accepted wisdom
10/16/16 1:47 PM ESTIndexing
"How many of us often just cite 'the average can't beat the average' and move on assuming we've smashed whoever we were debating? I know I have done it many times. Sharpe's insight is, in my opinion, likely still mostly true, perhaps entirely true. But Lasse has, at the very least, created some doubt for me in something I was pretty sure about."
More Indexing: Sharpening the arithmetic
The illusion of choice

Sharpening the arithmetic
10/16/16 1:45 PM ESTIndexing
"I challenge Sharpe's (1991) famous equality that 'the return on the average actively managed dollar will equal the return on the average passively managed dollar.' This equality does not hold in general. It is based on the implicit assumption that the market portfolio never changes, which does not hold in the real world because new shares are issued and others are repurchased. Hence, even 'passive' investors must trade regularly in order to maintain their market-weighted portfolios. Since passive investors may trade at less favorable prices than active managers, Sharpe's equality is broken. The changes of the market portfolio are large enough that active managers can add noticeable returns. Hence, active managers can be worth positive fees, which allow them to provide an important, beneficial, role in the economy - helping to allocate resources efficiently. Passive investing also plays a useful role, especially since the average active mutual fund manager has charged larger fees than their value added."
More Indexing: The illusion of choice
A more balanced S&P 500

The illusion of choice
10/16/16 1:02 PM ESTIndexing
"The challenge with dividends as an investment factor, as opposed to Value, Momentum, or Quality, is that only so many companies pay dividends. As buybacks have become more popular in the U.S., the share of stocks paying high dividend yields has declined. The chart below breaks down dividend payers listed on the S&P 500 by their level of yield. While the share of companies paying small yields of less than 1% has decreased, the share of companies paying greater than 4% has also declined. Historically, about 12% of S&P 500 stocks offer a yield of 4% or greater. As of the third quarter, the tally is half that at 6%."
More Indexing: A more balanced S&P 500
Testing smart beta

Health spending and life expectancy
10/16/16 1:01 PM ESTHealth
"The graph below shows the relationship between what a country spends on health per person and life expectancy in that country between 1970 and 2014 for a number of rich countries. The US stands out as an outlier: the US spends far more on health than any other country, yet the life expectancy of the American population is not longer but actually shorter than in other countries that spend far less."
More Health: Time to take carpe diem seriously
Diet advice that ignores hunger

The next financial crisis
10/16/16 12:53 PM ESTMarkets
"Where is the next financial crisis developing? How can investors protect themselves? Answers from two crisis experts, Robert Aliber, Editor Manias, Panics, and Crashes and Global Shocks author, Nicholas Sargen." [video]
More Markets: Backtesting with unrealistic data
Buyback bulls and bears

Backtesting with unrealistic data
10/16/16 12:45 PM ESTMarkets
"I'm picking on this particular asset class to prove a point, but the same conclusion applies to a number of asset classes where Fama-French, Ibbotson, poorly matched mutual fund, etc. data is used. In many cases, that data does not remotely match up to anything that can be traded in today's market."
More Markets: Buyback bulls and bears
Financial crisis

Read 100 books a year
10/16/16 12:41 PM ESTBooks
"If you're an ambitious, goal oriented person, it's possible that one of your New Year's resolutions was to read more books. Books are the gateway to imagination, to worlds we may not be able to access physically, but can emotionally. Books help us to expand what we're capable of being and experiencing. Based on the math, which I'll explain below, I'll likely have read 100 books this year."
More Books: A share of Berkshire Hathaway
ILTB: Michael Mauboussin

The Stingy News Weekly: October 9, 2016
10/09/16 7:57 PM ESTSNW
This week we have dividend stocks, buybacks, Buffett, Trump, Housel, and more.
More SNW: The Stingy News Weekly: October 2, 2016
The Stingy News Weekly: September 25, 2016

ILTB: Morgan Housel
10/09/16 7:36 PM ESTBehaviour
"Morgan Housel and I explore the differences between private and public market investing, how to foster innovation and creativity, how businesses are structured and organized, and how Morgan finds interesting books and topics to write about."
More Behaviour: Time or Money
Nudges take a battering

Buyback bulls and bears
10/09/16 5:35 PM ESTMarkets
"I expect buybacks to continue at high rates so long as interest rates continue to be lower than the earnings yields of companies, and will continue to garner accusations of CEOs of manipulating earnings and stock prices to line their own pockets. But the data offers stronger support for the claims that buyback programs on average generate long-term excess returns for shareholders, driven by the earnings of the companies"
More Markets: Financial crisis
You don't have to play

Financial crisis
10/09/16 5:03 PM ESTMarkets
"Why have financial crises occurred with such dismaying regularity throughout history around the world? Perspective from renowned financial crisis expert Robert Aliber and leading Wall Street economist and strategist, Nicholas Sargen." [video]
More Markets: You don't have to play
The bubble in Japan

Buyback yield
10/09/16 5:00 PM ESTStingy Investing
"Canadian investors love dividend stocks. But income seekers should look beyond a company's dividend yield to other factors that can enrich - or impoverish - shareholders." [$]
More Stingy Investing: Top dividend stocks of 2016
Learning to live with low returns

Top dividend stocks of 2016
10/09/16 4:58 PM ESTStingy Investing
"We're hard at work on this year's Dividend All-Stars, which grades the largest 100 dividend stocks in Canada. As a preview, I thought you might be interested in a few highlights and some behind the scenes data to whet your appetite for the next issue of the magazine."
More Stingy Investing: Learning to live with low returns
The power of incentives

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