What do Charles Schwab, Warren Buffett, Jim Cramer and John Bogle have in common? Shoe size, maybe? No, they all think that most Americans, up to 98% of us, should be using index funds to build a retirement nest egg. Schwab appears to be the most recent convert to the passive approach, telling reporters that… Continue reading →

David Einhorn, the hedge fund guru best known for shorting Lehman Brothers in 2007, is back at it, this time with tech stocks in his sights. “There is a clear consensus that we are witnessing our second tech bubble in 15 years,” Einhorn’s $10.3 billion firm, Greenlight Capital, told clients in a letter this week.… Continue reading →

Professor Burton Malkiel of the Rebalance Investment Committee on how tax-deferral and compounding leads to significant long-term growth of an investment portfolio. Continue reading →

Jay Vivian, former managing director of the IBM Retirement Funds, explains how diversification protects a retirement investor from the chance that any given investment will fail in time. Continue reading →

Jay Vivian, former managing director of the IBM Retirement Funds, on the human temptation to strive for outperformance despite evidence that consistently beating the benchmarks is close to impossible. Continue reading →

Professor Charles D. Ellis of the Rebalance Investment Committee details the human reasons we fall for the idea of active management, even though indexing is simpler and more effective. Continue reading →

If you follow the career of billionaire investor Warren Buffett, you likely have kept up on the succession chatter of late. After all, Buffet is 83 now. Sooner or later, someone will take the reins at his firm, Berkshire Hathaway, and that person will pick up the mantle of his amazing performance over the years.… Continue reading →

Jay Vivian, former managing director of the IBM Retirement Funds, on why people seem turned off by indexing, despite the evidence that index investing consistently provides steady gains while limiting the risk of loss. Continue reading →

Professor Charles D. Ellis of the Rebalance Investment Committee explains how diversification lowers the risk of unexpected losses in a portfolio, providing what Burton Malkiel calls “the only free lunch in investing.” Continue reading →