“The pairing of SBC and buybacks can reduce and increase agency costs. They reduce agency costs if executives and other employees are aligned with shareholders and the company returns cash to shareholders rather than wasting it on investments that destroy value. They increase agency costs if they are an inefficient...Read More

(Photo by Reuters)     “The traders hadn’t seen a move like that – ever. True, it had happened in 1987 and again in 1992. But Long-Term’s models didn’t go back that far. As far as Long-Term knew, it was a once-in-a-lifetime occurrence – a practical impossibility – and one for...Read More

“Most institutional portfolios are badly out of balance. The returns of most institutional portfolios are 90+% driven by the return of equities, exposing them to a single adverse event which could last for decades, a poor performing equity market….not balancing the portfolio is so risky as to be imprudent.” –...Read More

“The nutshell is this: the old line economy stocks just don’t work because they have earnings and eventually rising interest rates impact earnings. New economy stocks have no earnings, so investors don’t see a need to exit.” – Wall Street analyst on CNBC, early March 2000 (said without irony)  |...Read More

You’ve heard it before: Defense wins championships. Think about the nicknames that great defenses have gotten in the past: the Steelers’ “Steel Curtain”, the Cowboys’ “Doomsday Defense”. A large part of why the Broncos won Super Bowl 50 was the play of their defense, led by MVP Von Miller. It’s true that...Read More

“It’s not about predicting, it’s about preparing. “ – Daniel Taylor | We Need to Talk (What to Ask Your Advisor) In the current environment, I’ve found that many investors are concerned about what could happen to their investments in a falling market (and rightly so).  But, you shouldn’t have to just...Read More