It’s easy to beat the S&P 500. Just hold all stocks in the S&P 500 in an equal amount. This “equal weighted” index would have outperformed the cap-weighted S&P by more than 6% annually over the past five years. What’s the trick? Just ignore risk.
Everything was bionic in the 1970s, even investment strategies. Bionic Beta was the buzz phrase with institutional investors. This wasn’t a strategy that invested in companies that made bionic arms, legs, or eyes — far from it. Bionic Beta was a strategy that is very similar to what is being called Smart Beta today. In a sense, it’s the 1970s all over again.
Do you have what it takes to be Wall Street’s next victim? If you consider yourself to be smarter than the next investor due to your social status, education or success in an unrelated career, then watch out because you’re going to be eaten by sharks. How do you avoid becoming shark bait? Recognize the [...]
Ladies and gentlemen, your life-long search for the perfect investment strategy is over. Forget fundamental weighted indexes, low-volatility, and Smart Beta – let me introduce to you the most stupendous idea to hit Wall Street since the ticker tape. It will make your old neighbors ripe with envy when you move into your new oceanfront mansion. Get ready for Super-Duper Brilliant Beta!
John C. Bogle was hired by Wellington Management Company in 1951 immediately following his graduation from Princeton. Hard-driving Bogle became President of the company in 1967, the fund company’s CEO in 1970, and was subsequently fired in 1974 for a bad decision. With Mr. Bogle’s permission, this article documents new information about his early career and about the fund industry during that time.