Helping investors make smarter decisions. Journalist, author, evidence-based investing advocate. Founder of The Evidence-Based Investor.
English Midlands
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If you're ready to give up work and have £500,000 in your pension pot, it makes perfect sense to hire a financial planner.. and, ideally, have an ongoing working relationship with the same planner during your retirement.
But what if you've reached your late 50s or early 60s and your retirement pot is £50,000 or £100,000? What if you've lost your job? What if you can no longer work for health reasons or because you need to care for an ageing parent? Most advice firms won’t even take you on.
Yet sound advice is arguably more important the less you have in savings.
𝗦𝗼 𝘄𝗵𝗮𝘁 𝗱𝗼 𝘆𝗼𝘂 𝗱𝗼 𝗶𝗳 𝘆𝗼𝘂’𝗿𝗲 𝗶𝗻 𝘁𝗵𝗮𝘁 𝘀𝗶𝘁𝘂𝗮𝘁𝗶𝗼𝗻? 🤔
I'm delighted to be starting a new series of content to help those with average or below-average savings to make the most of what they have. I'll share a new article and video every month to provide you with the information you need.
You’ll find a link to the first article and video in the first comment. 👇
#Pensions #Retirement
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Hedge fund manager James Simons earned $4,657,534 *per day* in 2017. That's about £3,531,528, or almost €4 million. Per day. All three of his funds comfortably underperformed the S&P 500. That's how crazy this industry is
What the world’s richest #hedgefund managers earned in 2017 institutionalinvestor.com/ar… via @iimag
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We keep hearing the phrase, "the will of the British people". Here's a breakdown of the #Brexit referendum result
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None of the investment portfolios run by the leading 60 US university endowments have outperformed a basic equity index fund over the past decade. That’s ZERO out of SIXTY @CharlesSkorina @chrisflood_FTfm #EvidenceInvesting ft.com/content/beeae17a-f6a4…
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Jack #Bogle has saved Vanguard investors $175 BILLION over the last 45 years. Add to that the money he saved for customers of other firms who lowered their fees to compete with VG, and the total must be in the trillions. Quite a legacy
Vanguard has saved investors $175 billion in fees since it was founded in 1974. This is based on the historical difference between the asset-weighted average expense ratio of an active mutual fund versus that of a Vanguard fund.
bloomberg.com/opinion/articl…
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This was the defining moment of my year — being asked to leave an adviser conference after my presentation "upset the sponsors" #EvidenceInvesting ow.ly/ayeK30htTQc
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Warren #Buffett yesterday: “In my view, for most people, the best thing is to do is owning the S&P 500 index fund. There are huge amounts of money people pay for advice they really don't need” #Investing cnbc.com/2020/05/02/warren-b…
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"You can pay 0.03 per cent in annual fees to Vanguard for a fund linked to the S&P 500, which has returned 45% in five years. Or you could pay roughly 30 (THIRTY) times more for Mr Woodford’s flagship fund, which has fallen 1% in the same period" on.ft.com/31fIZXw
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Here's a great explanation of how compounding from #investing is huge, but you won't see the benefits for long time. It’s not until 35 or 40 years of saving that it finally begins to overwhelm the amount saved @awealthofcs awealthofcommonsense.com/201…
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Josh Brown: Why today's adviser has no option but to be evidence-based @ReformedBroker #EvidenceInvesting ow.ly/AUwQ30dH9xa
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What is it with sports stars? Had he simply put his prize money in a global equity index fund, he & his loved ones were set up for life
Boris Becker 'invested in Nigerian oil firms that plunged in value', before losing £100m fortune telegraph.co.uk/news/2017/07…
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If you want to succeed at investing, these are the seven things Jack Bogle says you need to remember ow.ly/AfEp30hjHN3
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We did it!
Thank you to everyone who’s read our book.. and helped us spread the word about evidence-based investing and proper financial planning.
Let’s change #Investing for the better 💪
#How2Fund
How to Fund the Life You Want takes home the Work & Life Award. Congratulations @RobinJPowell and @jphollow! 🥳 #BBA2023
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Same old story. Fund manager outperforms and is anointed as a star, so investors pile in. The manager reverts to the mean, and investors pile out again, locking in their losses relative to the index. The only winners are Woodford himself and brokers like Hargreaves Lansdown
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The waiting is finally over.. Invest Your Way to Financial Freedom is published today.
Thanks to @harrimanhouse and my co-author Ben Carlson for all your hard work.. This book will change lives for the better.
@awealthofcs #Investing #Pensions #FIRE ow.ly/zgw750GhDtj
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#AVFC season tickets renewed for another year. Whatever the division, we'll be there @AVFCOfficial #PartOfThePride
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Back level on the stroke of half-time. Adomah penalty #AVFC
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Wow. Out of 1,034 US large-cap funds, not a single one has managed to beat the S&P 500 three years in a row @SPDJIndices
The Stockpicker’s Struggle With Fleeting Alpha blogs.barrons.com/focusonfun… .
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Warren Buffett’s advice for ordinary investors, summarised in 25 quotes @RockwealthUK ow.ly/YkU230julYv
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It sounds like a joke, but it isn’t.
US large-cap equity managers would have delivered higher returns over the last ten years if they’d been on holiday the entire time and not placed a single trade.
#Investing #Stocks #ActiveManagement @syouth1
ow.ly/739B50OevB9
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Ritholtz Wealth Management is one of the fastest growing advice firms in the United States — and it's not yet five years old. This is how it got there @ReformedBroker @ritholtz ow.ly/krE630jgzLs
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A whole profession paid for accomplishing practically nothing — Charlie Munger’s scathing assessment of active fund management #FundManagement ow.ly/Kl9w30nIhut
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A warning to my fellow journalists tempted to run this "story": it's complete claptrap, and totally at odds with the peer-reviewed academic evidence. Happy to explain if you want to get in touch.
Actively-managed funds significantly outperform passives, says Willis Owen buff.ly/2utOoLf
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A reminder of the PR onslaught that persuaded hundreds of thousands of people to invest money in the #Woodford Equity Income fund #HargreavesLansdown
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😫Just seen a case of an investor advised in 2013 by a large advice chain to spread their money over more than 20 active funds. The client made £70k; if they'd invested in a simple index fund portfolio they would have made about £240k. That's how much bad advice costs.
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Every client of St James’s Place Wealth Management should read this report and ask, Is my financial adviser really acting in my best interests? @yodelar #SJP yodelar.com/insights/st-jame…
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Sadly, this is how many people view the financial advice profession today. The good news is, there’s a growing number of evidence-based, fiduciary advisers who genuinely do put their clients’ interests ahead of their own @ST_Money #FinancialAdvice
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"Every piece of financial news you read should be filtered by asking the question, 'Will I still care about this in a year? Five years? Ten years?'" @morganhousel ow.ly/B43m30hdC9w
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I suppose it was inevitable, but I’ve finally been blocked by Mark Dampier, the former head of “research” at #HargreavesLansdown who became a multi-millionaire off the back of promoting fund managers like Neil #Woodford 😏
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Interview with @ReformedBroker Josh Brown pscp.tv/w/bB_qnDFlVlFZWEJZcU…
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Few people have done more to help ordinary people achieve better investment outcomes than Jonathan Clements, and, in this podcast, Jonathan tells his extraordinary story.
Born and educated in England, Jonathan moved to the US his early 20s and became an investment columnist for the Wall Street Journal.
He was one of the first journalists to realize that most investors are better off avoiding actively managed funds. Week after week, he urged readers to stick to low-cost index funds, ignore the noise, stay calm, and simply stay invested.
In this fascinating and inspiring interview, Jonathan explains how to be a successful investor. He also explains the value of working with a financial advisor who can manage your behaviour, identify what you want from life and help you stick to your plan.
Most importantly, Jonathan talks candidly about being diagnosed earlier this year with terminal cancer and what ALL OF US can learn from his experiences.
Watch the interview here, and prepare to be inspired >>> shorturl.at/3y6mH
#Investing #FinancialPlanning #FinancialLiteracy #Happiness @ClementsMoney
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"Constructing a good enough portfolio isn’t nearly as difficult as the #investment industry often makes it out to be, but overseeing our portfolio while managing our emotions is probably still harder than we give it credit for." @MichaelBatnick ow.ly/VMc230nOYOZ
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5 years ago, you could have bought a global equity index tracker (yellow line), or followed the advice of Hargreaves Lansdown and many pundits, consultants and advisers and invested in the Woodford Equity Income fund (black line). The market return is always there for the taking.
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The ugly truth about much of the #investing industry: "Whether they are trying to sell you a product, or get you to watch, listen or click on something, the giant bullshit industrial complex is working against you" @ritholtz ow.ly/B2cn30mUTLm
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If Mark Dampier and his colleagues in the #HargreavesLansdown "research" department really could identify winning fund managers in advance, you would expect the HL's flagship Multi-Manager fund to have trounced the global equity index. In fact the opposite has happened
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“Nothing in life is as important as you think it is while you are thinking about it.” Daniel Kahneman
Great post by Joe Wiggins on how investors get far too worried about things they probably won’t even remember in a few months’ time #BehahviouralFinance
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Younger investors are less willing to rely on instinct than the older generation. They want evidence @ReformedBroker ow.ly/7LYZ30c9DV9
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Beware of anyone claiming they can capture the upside of market volatility and avoid the downside. It pushes all our emotional buttons but it's an illusion @Ritholtz #Investing #Markets ow.ly/g5pv30mA60h
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If you still don't have any retirement savings at 40, the last thing you want to be doing is buying individual stocks
No savings at 40? I’d buy these 2 FTSE 100 dividend stocks to beat the State Pension buff.ly/31GPy5R
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“There is nothing wrong with being rich. But there is quite a lot wrong with ostentatious displays of wealth if your success is being funded by clients who may have little understanding of the true cost of what you’re charging them.” @jimconey thetimes.co.uk/article/st-ja…
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Ever wondered why so few financial professionals advocate indexing? @RockWealthUK #Investing
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Advice firm @RitholtzWealth introduced financial incentives to encourage investors to stay disciplined — and it's proving a win-win for the business and its clients @ReformedBroker @krisvenne #BehaviouralFinance ow.ly/r5nS30n7xEk
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Depressing to see so many tips for active funds in the newspapers today 😞 Have we learned nothing from #Woodford? Readers need to be told that they’ll almost certainly achieve better results by indexing, at a tiny fraction of the cost #EvidenceInvesting
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Just heard from an adviser who was was approached by a consolidator about buying his firm. When he told them he was evidence-based, fixed-fee and fiduciary, they told him they were no longer interested. I wonder what clients would make of that 🤔
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This is great: The 25 Best Warren #Buffett Quotes in One Infographic - Visual Capitalist visualcapitalist.com/the-25-…
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A candid interview with the world’s most famous investor, in which he acknowledges how hard it now is for active stockpickers to beat the market. $1 invested in Berkshire Hathaway 10 years ago is worth about $2.40; the same dollar in an S&P 500 tracker fund is worth $3.20.
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The oldest trick in the book. Underperforming funds? Simply shut them down or merge them with other funds. The secret is to ensure there are just enough funds outperforming at any one time to maintain the illusion of skill nitter.app/ftfm/status/9600767394…
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The 10 US stocks least owned by actively managed mutual funds outperformed managers’ top 10 picks by a record-breaking 17% in 2019 @RobinWigg @ftfm ft.com/content/c35e416e-2045…
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The sad thing is the Telegraph used to have one of the better money sections. Ever since it launched a joint "financial advice" business with St James's Place Wealth Management it's been churning out misleading nonsense like this #SJP #Investing ow.ly/gUdF30oaMWI
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Why your brain needs you to read every day @Alltopstartups ow.ly/aMCb30kuXSm
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#SJP advisers aren’t happy to be missing out on their luxury cruises. According to @AlihussainST in @ST_Money some are threatening to stop selling any more investments until they’re compensated
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This is simply untrue. The data shows, time and again, that investors are no better off in active funds than they are in passive funds when markets fall. In many cases they’re considerably worse off #EvidenceInvesting
Active managers better at managing downside - some good comment from Richard Ivers, whose Prime Value Emerging Opportunities Fund tops its peers for recent performance: investmentcentre.moneymanage…
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Financial advisers don’t manage money, they manage people. That’s why behavioural coaching is arguably the most important aspect of their job description @MetisIreland @RegisMedia (Video 5 of 5) #ValueOfAdvice vimeo.com/247397724
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Thank goodness is no longer just blogs like #TEBI that are warning consumers about this stuff, but the mainstream UK media as well #Investing
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When a fund manager earns £16.6 million a year for underperforming a simple index tracker, is it any wonder that investors are deserting #ActiveManagement in their droves? @siobhan_riding
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Most people outside the West Midlands won't have heard of Ed Doolan. But for those of us who live and work here, he was a radio legend — a first-rate consumer journalist who spoke truth to power.
Thanks, Ed, for standing up for us! #EdDoolan #Birmingham
It is with great sadness that we have to announce the passing of our friend and broadcaster Ed Doolan.
Our thoughts are with his wife Chrissy and his family. Rest in Peace Ed.
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If you haven't yet listened to Barry @ritholtz interviewing Richard Thaler last year, you should > ow.ly/DWql30fM0yr
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Morningstar nails another myth about indexing. If anything, passive fund providers take corporate governance more seriously than active managers.. and their commitment to #ESG is growing
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Eugene Fama on building a financial business today:
"Cut the staff down and go passive. I’ve been saying that to the university’s endowment for 50 years. They’ve never followed my advice, and it would be a much bigger endowment now if they had."
ow.ly/TdfV30gRmpd
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The staggering cost of investing with St James’s Place and #HargreavesLansdown is spelled out in today’s Sunday Times @AlihussainST ST_Money #SJP thetimes.co.uk/edition/money…
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"This paper should finally stop #ClimateChange deniers claiming that the recent observed coherent global warming is part of a natural climate cycle.” @ProfMarkMaslin bbc.com/news/science-environ…
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Sorry, but a “financial education” hub run by St James’s Place is not the right place for young people to go to for impartial information about #money and #investing
St. James's Place has launched a financial education hub to help equip young people with the tools they need to take control of their money.
professionaladviser.com/prof…
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Charlie Munger: “Everywhere there’s a large commission, there’s a high probability of a rip-off.” @ATeachMoment #Investing ow.ly/Mcoa30nWGCq
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The problem with index funds, we’re often told, is that in a market rout they fall in line with the index. The problem with actively managed funds is that the vast majority fall further still #Markets #EvidenceInvesting bit.ly/3b3nWMg
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New research shows that North Americans households that use financial advisers achieve significantly better financial outcomes than those that don’t @ebasilico @alphaarchitect #FinancialPlanning bit.ly/3dr4BGj
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“Dear Mr Powell. When it comes to your financial affairs, who do you trust?” Certainly not you!
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At this time of year, stock market forecasts abound. They shouldn't be taken seriously #EvidenceInvesting
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Love this article. Of those investors who identify, in advance, the one fund in a hundred which will outperform long-term, most don't stick with it long enough to benefit. Even investors in Peter Lynch's Magellan fund lost money on average @kirkchisholm ow.ly/hzHV30leSwa
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It takes no talent to keep predicting a stock market crash @ReformedBroker ow.ly/z3b130gcwaZ
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"There are so many smart people in the markets competing with each other second by second. Their intelligence cancels out, and the only edge that’s left for normal people is patience" @michaelbatnick @abnormalreturns ow.ly/idOz30kRnNW
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If active funds want to remain relevant, they have to cut their fees, and that includes reducing salaries. Paying managers £15-20 million a year for underperforming the market is completely unsustainable @OwenWalker0
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I stayed on in the US after the Evidence-Based Investing Conference to interview Harry Markowitz. I'm so glad I did @ritholtz @ReformedBroker @RitholtzWealth #EvidenceInvesting ow.ly/jVNx30horUr
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"Emotional intelligence has a much bigger impact on the success or failure of investors than where they went to school or how complex their investment strategy is" @awealthofcs ow.ly/DeaE30iBVa9
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Does anyone reading these sorts of articles seriously think that tens of thousands of stock market traders haven't already had exactly the same idea?
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Money journalist and broadcaster Paul Lewis is a prolific user of Twitter.
But one of his golden rules is this: never, ever, ever trust financial advice you find on social media.
@paullewismoney @BBCBooks #Investing #Money #PersonalFinance ow.ly/avmT50MJ8x3
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.@Freakonomics has re-broadcast this excellent podcast on evidence-based #investing from last year. If you haven't yet done so, do yourself a favour and listen to it > ow.ly/SRjO30j71hn
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Last month Hargreaves Lansdown research director Mark Dampier was telling investors Neil #Woodford was about to turn the corner. At the same time he was selling £600k of HL shares, just before they plummeted in value thisismoney.co.uk/money/news…
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Eight lessons for investors from Warren #Buffett. What a shame that most people never learn them @RockWealthUK #Investing ow.ly/fp7630lezt3
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Most investors have never heard of Dimensional Fund Advisors, but it’s attracted more funds globally over the last 5 years than any other active manager. (It’s not, in my view, an active manager, but either way it’s a huge achievement) #EvidenceInvesting
Dimensional was #1 in active fund net sales globally in the last 5 years: what this tells us about the future of #fund management ow.ly/vyAx30kkJXt
#smartbeta #ETF
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“Investors encouraged by Hargreaves to plough money into the #Woodford Equity Income fund on launch have lost £91 for every £10,000 put in, yet also forked out £455 in fees. Woodford pocketed £240 of that; Hargreaves creamed off the other £215”
Today's Money special on Woodford by @AlihussainST: The full cost of the “cosy” tie-up between Neil Woodford and Hargreaves Lansdown is laid bare.
thetimes.co.uk/edition/money…
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Here's a classic example of misleading marketing from a well-known UK advice firm. The index returns shown are the capital return not the total return (i.e. including dividends), which in both cases is far higher. @TheFCA has got to get a grip on this #Transparency
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Here’s a must-read piece by @RobinWigg in the FT on why stated #PrivateEquity returns just can’t be trusted.
Investors beware: so-called volatility laundering is rife.
@FTAlphaville #PE #Investing ow.ly/UpMJ50Q1Noy
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"The investment business is perhaps the only area of the economy that can rival health care in complexity, low quality, opacity and unreasonable cost" @jasonzweigwsj ow.ly/gH7L30ifCIb
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This may be the first bull market in history that featured layoffs on Wall Street @ReformedBroker ow.ly/m10p30cPoBN
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By using low-cost #IndexFunds, ordinary Americans are substantially outperforming wealthier investors, who are doubling down on expensive, sophisticated #investments. The phrase "dumb money" needs redefining @ritholtz ritholtz.com/2019/09/investi…
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Funny how analysts tend to downgrade funds and remove them from "best buy" lists AFTER they've underperformed. It would be more helpful to flag their concerns BEFORE they flop, so investors could do something about it #2020Hindsight
More bad news for Woodford as @uk_morningstar downgrades his £6.6bn Equity Income fund investmentweek.co.uk/3032721…
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“Buying any financial product should be based solely on what is right for the customer, and sometimes that means doing nothing. No salesperson is going to do that — not when their livelihood depends on it.” @jimconey @ST_Money thetimes.co.uk/article/finan…
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Most financial advisers like to give give the impression that you should try to beat the market. Apart from the fact that it’s extremely difficult to do and they probably haven’t done it themselves, it’s also completely unnecessary @afairreturn #Investing bit.ly/2mGjONM
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What fund manager Terry Smith told the Times about HL's recommended funds in January #HargreavesLansdown #Woodford
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