Jay Vivian, former managing director of the IBM Retirement Funds, explains the power of compounding using the simple story of the Indian sage who asked for payment in grains of rice on a chessboard. 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 →

Professor Burton Malkiel of the Rebalance Investment Committee on how greed drives bad decisions among investors, including marketing timing and purchasing popular funds whose price have been driven too high. Continue reading →

Anyone who goes to business school learns a basic rule of decision-making: Understand your opportunity cost. It’s a hard lesson. Opportunity cost means fully calculating the return on two or more options, then choosing the best path forward. Here’s a quick case study: A manager believes that locating a plant in South Carolina is likely… Continue reading →

Professor Charles D. Ellis of the Rebalance Investment Committee breaks down the thinking behind a simple stock-to-bond asset allocation and how to adjust those ratios for your personal investment time horizon. Continue reading →

Professor Burton Malkiel of the Rebalance Investment Committee shows how investors chase stocks too high then sell out at market bottoms and explains how Rebalance works to overcome this human bias toward investing. 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 Burton Malkiel of the Rebalance Investment Committee tells the story of Warren Buffett’s “cost of hamburgers” quiz that shows how people misunderstand stock prices. See more powerful advice on stock prices for everyday savers. TRANSCRIPT Warren Buffett is probably the world’s greatest investor. And he tells this wonderful story in one of his essays.… Continue reading →

If you follow the financial media day-to-day, you get caught up in a narrative that is as appealing as it is wrongheaded. It goes something like this: You must know what’s going on, because you must take action immediately. It’s wrongheaded because almost nobody should be trying so hard to outmaneuver the market. Even the… Continue reading →