How is your investment account doing? Do you really know? This episode of Keep Calm & Carry On addresses how investment returns are measured, and not measured. Is the race to the swift and the battle to the strong? Well, it turns out, “it’s complicated.”
In this special episode, I admit to several heterodox views of dividend investing. The first concerns the market’s yield as a predictor of future returns. The second offers an unusual view of dividend cuts.
Where did all the dividends go? In this episode, I explain how dividend-free growth investing became the norm in the US stock market. For dividend-focused investors, how we got to this state of affairs should be of some interest. And they make take some comfort in the realization that cashless investment is to a great extent a historical, and I would argue, a logical anomaly. For growth investors content with the current situation, knowing whence they came serves at least some utility, even if I do not believe that those conditions will persist.
Treat your investments like holdings in actual businesses is a common invocation on this podcast. To that end, today I talk to an entrepreneur on the front lines of business ownership. My high school classmate, Jeff Brown, is the owner of 12 grocery stores in Philadelphia. How does he survive in a brutally competitive low-margin environment? How did he respond to the additional challenges of Covid? How does he make being in food deserts work? It turns out there is an answer, and it’s not on the University of Chicago MBA curriculum: community involvement. Listen to the very end. There …
In his new book Inside Money: Brown Brothers Harriman and the American Way of Power, the prolific Zachary Karabell uses the history of Brown Brothers Harriman to follow the arc of American political economy, from the muscular capitalism of the early generations of the Brown family in the 19th century, to their maturation as genteel private bankers in the 20th century, to the sense of service of the BBH partners when they were regularly called to Washington from the 1930s through the 1960s. It is a (mostly) positive tale about American history, American finance, American economic growth and innovation. That makes it …
After four decades of declining interest rates, and widespread meddling in the risk-signaling mechanism of the US 10-Year Treasury Note, stock investors are justifiably confused by the prospect of rising rates. What’s it mean, particularly for income-oriented stock investors? In this episode, I try to clear the air and simplify the confusing narrative about rising rates and dividend-paying stocks.
With journalists being pulled off planes in Minsk and tensions between Russia and the US at a multi-decade high, Dina Fainberg‘s new book, Cold War Correspondents, just out from Johns Hopkins University Press, could not be more timely. She joins me on the show to discuss the long arc of super-power media relations through the decades.
Interest rates have been falling for 40 years. Few people now in the profession were active the last time rates were rising significantly. Bond guru Marty Fridson is one of those few. If we are at the end of a supercycle in interest rates, recalling investment practices and strategies from that “before” time should be of great use to investors.
This is a special two-part episode of Keep Calm and Carry On Investing that focuses on the academy’s treatment of dividend investing over the past sixty years. This first part highlights the dominant negative view; the second part is an overview of that less visible but equally important academic literature that positions dividend investing in the context of reasonable business ownership.
Before you sit down with your retirement planner, or begin doing your own planning, you should ask yourself several critical questions: about how you define risk and return, how much of the decision making you want to do yourself versus having third parties do it on your behalf, among other choices that have to be made. I go through this exercise with Ron “Everyman,” an attorney in his late 50s thinking about how to plan for retirement.