Fund investigations: Should you sell now?

The mutual fund scandals keep coming at shell-shocked investors who wonder whether they should abandon the whole industry and put their money under a mattress. It all depends whether you own shares in ...

Are investors sharper than in 1911?

“One minor conclusion from all this data and experience is that the very small investor is the most inveterate bargain hunter in the world” It is the small investor who always wants 100 percent ...

Too much company stock

You would think that after the horror stories about Enron employees who lost their job and their retirement savings more employees would diversify out of their own company’s stock. Not so, according ...

What do stock traders and lottery ticket buyers have in common?

Why do some investors trade stock frequently in the hope of getting rich, especially when it is easy to see that short-term trading is a losing proposition? The answer may be in comparing the behavior ...

Broker is fined for pushing its own funds

Pity the poor Morgan Stanley client—his account contains mediocre mutual funds because his broker got concert tickets and dinner vouchers for selling them. The National Association of Securities Dealers ...

Predicting Warren Buffett: Lessons on hindsight

Billionaire investor and businessman Warren Buffett has built an enviable investment record through his management of Berkshire Hathaway Inc. From 1965, when he took over the publicly traded company, through ...

Client Letter – Q3 2003

Once again, we’ve had a great quarter!  I have included a Monthly Performance Report from DFA, which shows the quarterly performance for all of the DFA funds.  I have placed stars next to the primary ...

An alternative: Small international stocks

Investment allocation theory teaches that a portfolio’s return and risk can be improved by adding more investments with low correlation to other portfolio investments. Investors who have suffered ...

Inconsistent funds: Mutuals change their stripes

Investors who think they know what they are getting when they buy actively managed mutual funds had better look beyond each fund’s name, a new study indicates. Many stock funds use the terms “value” ...

A sucker’s bet hurts many investors

Mutual funds may be the most efficient and easy way for individuals to participate in the stock market, yet the average fund investor has not made anything like the market’s returns since 1984. What’s ...