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.
Douglas Skinner (along with his collaborators, Linda & Harry DeAngelo) is the author of an important framework for understanding why companies pay dividends and investors would seek them out. That stands in stark contrast to the dominant narrative on Wall Street and some of Main Street that is, to a substantial degree, dismissive of the distribution of free cashflow to company owners. Douglas Skinner is Deputy Dean for Faculty and the Eric J. Gleacher Distinguished Service Professor of Accounting at the University of Chicago Booth School of Business. You can find his work here.
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. The attachment is a PDF of the revised narrative. Special episode Fallacy or Philosophy Part 1
This episode of Keep Calm and Carry On Investing focuses on achieving Polonius’s advice in Hamlet: “to thine own self be true.” In regard to investing, that turns out to be harder than one might imagine. Comments, questions and suggestions for future topics are welcome. A PDF of the edited script is attached. Truth vs. Clarity script
David Solomon (along with his co-author Samuel Hartzmark) write on the challenges of dividend investing from an academic perspective. While we may have to agree to disagree on certain points, all dividend-oriented investors, advisors, and consultants should be aware of the issues that arise from being a dividend investor in very stock-price oriented market. David Solomon is Associate Professor at the Carroll School of Management at Boston College. You can find his work here. Samuel Hartzmark is Associate Professor at the University of Chicago School of Business. His site.
This episode of Keep Calm and Carry On Investing is the Introduction to a new audio book that reconsiders investment basics in an age of great uncertainty and unusual market dynamics. Please give it a listen. Comments, questions and suggestions for future topics are welcome.
Nearly 40 years with Kiplinger’s has given Jeff Kosnett unique insights into the market and investor behavior. Hear his thoughts on investing for income when rates are in the teens (the early 1980s) and when they are close to zero (now.)
Jim Garland is the retired, long-time president of the Jeffrey Company, a family office. He is also one of the industry’s “wise men.” You’ll understand why as we discuss his approach to portfolio management as reflected in a “Brief” that he wrote for the CFA Institute in 2019. That article can be found here. His other publications can be found here.