The beauty of diversification is it's about as close as you can get to a free lunch in investing. — Barry Ritholtz Copy Share Image
When it comes to investing, there is no such thing as a one-size-fits-all portfolio. — Barry Ritholtz Copy Share Image
Good investors must learn to contextualize the daily background noise. — Barry Ritholtz Copy Share Image
Markets are frequently ahead of, and often out of sync with, the economy. — Barry Ritholtz Copy Share Image
Mutual fund managers want your money in their funds. They get paid based on assets under management. — Barry Ritholtz Copy Share Image
When markets are rallying, cash in the portfolio is a drag on performance, returning about zero. — Barry Ritholtz Copy Share Image
If you think too-big-to-fail banks are not worthy of investment because of their impossible-to-read balance sheets, well then, don't buy them. — Barry Ritholtz Copy Share Image
Investors tend to discover 'hot' mutual fund managers just after a successful run and just before the inescapable force of mean reversion… — Barry Ritholtz Copy Share Image
Hedge fund managers charge so much more than mutual fund managers; alpha is even harder to come by. They end up selling… — Barry Ritholtz Copy Share Image
People forget that although we can pinpoint the price, we can only guess at future earnings. The past isn't much help: It… — Barry Ritholtz Copy Share Image
You want less of the annoying nonsense that interferes with your portfolios and more of the significant data that allow you to… — Barry Ritholtz Copy Share Image
We must recognize our own behavioral errors. To be blunt, you are not likely to become a cognitive Zen master anytime soon.… — Barry Ritholtz Copy Share Image
Indeed, eventually, random outcomes all revert to the mean, meaning that streaks eventually end. Understanding this is a key part of intelligent… — Barry Ritholtz Copy Share Image
Secular cycles are the long periods - as long as decades - that come to define each market era. These cycles alternate… — Barry Ritholtz Copy Share Image
A hedge fund manager whose clients demand monthly performance reports has different needs than any individual investors with a 20-year time horizon.… — Barry Ritholtz Copy Share Image
Rather than engage in the sort of selective retention that so many investors tend to do and pretend mistakes never happened, I… — Barry Ritholtz Copy Share Image
As investors, we want to believe we are smart, insightful and uniquely talented - even though we often fail to do the… — Barry Ritholtz Copy Share Image
I find it funny that people who didn't think there was any inflation in the pipeline are now talking about stagflation. This… — Barry Ritholtz Copy Share Image
Amongst the financial Twitterati, the term 'muppets' has come to describe any client used and abused by some financial predator. I've adopted… — Barry Ritholtz Copy Share Image
Commissions add up, taxes are a big drag, margin ain't cheap. A good accountant costs money as well. The math on this… — Barry Ritholtz Copy Share Image
Often, investors will discover a manager after he's had a terrific run, usually when he lands on a magazine cover somewhere. Invariably,… — Barry Ritholtz Copy Share Image
Here is a dirty little secret: Stock-picking is wildly overrated. Sure, it makes for great cocktail party chatter, and what is more… — Barry Ritholtz Copy Share Image
Many hedge fund managers have become billionaires; perhaps this - plus their reputations as the smartest guys in the room - is… — Barry Ritholtz Copy Share Image
Any time you speak to people about their posture, you learn about their most recent investment activity. When someone just bought stocks,… — Barry Ritholtz Copy Share Image
To know whether stocks are cheap or pricey, we typically look at price-to-earnings ratio. Valuation is a tougher question than many folks… — Barry Ritholtz Copy Share Image
No one knows what the top-performing asset class will be next year. Lacking this prescience, your next-best solution is to own all… — Barry Ritholtz Copy Share Image
What you pay for an investment is the single biggest determinant for how successful that investment will be. When equity prices are… — Barry Ritholtz Copy Share Image
If you are not making any mistakes, you are being excessively risk-averse. Investing involves risk, and that means you will occasionally be… — Barry Ritholtz Copy Share Image
Active management leads to lots of poor investor behavior. It sends people chasing after whoever has the hot hand at the moment. — Barry Ritholtz Copy Share Image
Investing is about making probabilistic decisions with limited information about an unknowable future. The variables are well known, as are the possible… — Barry Ritholtz Copy Share Image
Asset managers have different approaches, and I don't wish to suggest there is only one way to run money. There are many… — Barry Ritholtz Copy Share Image
Unlike cheap stocks, inexpensive asset classes have a lower chance of big drawdowns (broad asset classes don't go to zero) and a… — Barry Ritholtz Copy Share Image
The ability to select stocks, manage them over time and know when to sell them is incredibly difficult, even for professional fund… — Barry Ritholtz Copy Share Image
Whenever you hear a discussion about the short-term swings in any given stock's price, your immediate thought should be whether it matters… — Barry Ritholtz Copy Share Image
Yearly data put the rest of the noise into perspective. Most of the weekly or monthly random up-and-down movements get smoothed out.… — Barry Ritholtz Copy Share Image
Despite all the media coverage, glitz and glam of hedge funds, they have not done well for their investors. They have high… — Barry Ritholtz Copy Share Image
The bottom line is this: Cash, in modest increments, has a role in any portfolio. But unless you are Warren Buffett, you… — Barry Ritholtz Copy Share Image
Hedge funds are not especially liquid. Many are 'gated' - meaning there are only small windows when you can withdraw your money.… — Barry Ritholtz Copy Share Image
Amongst the financial Twitterati, the term 'muppets' has come to describe any client used and abused by some financial predator. I've adopted the term… — Barry Ritholtz Copy Share
It is important for investors to understand what they do and don't know. Learn to recognize that you cannot possibly know what is going… — Barry Ritholtz Copy Share
The good news is that economists are intelligent, engaging and often charming folks. The bad news is their work is often of little use… — Barry Ritholtz Copy Share
The electronics industry expanded rapidly and the seeds for the semiconductor and software revolution were planted. The postwar period also saw the suburbanization of… — Barry Ritholtz Copy Share
Footage of people camped out at Best Buy or elsewhere is not remotely a celebration. Rather, it's a reminder of just how economically distressed… — Barry Ritholtz Copy Share
Markets are frequently ahead of, and often out of sync with, the economy. — Barry Ritholtz Copy Share
Narrative drives most of economics. Everything seems to be part of a story, and how that story is told often leads to critical error. — Barry Ritholtz Copy Share
This ugly duckling investment will likely need time - quarters, or even years - to blossom into a beautiful swan. — Barry Ritholtz Copy Share
Yearly data put the rest of the noise into perspective. Most of the weekly or monthly random up-and-down movements get smoothed out. Ultimately, this… — Barry Ritholtz Copy Share
A number of bloggers in economics and the financial sector have risen to prominence through the sheer strength of their work. Note it was… — Barry Ritholtz Copy Share
TV producers want ratings and are willing to do nearly anything to get them. They gin up artificial conflicts and create an urgency for… — Barry Ritholtz Copy Share
Asset managers have different approaches, and I don't wish to suggest there is only one way to run money. There are many ways one… — Barry Ritholtz Copy Share
There is a shortage of doctors, and the American Medical Association is aiming to keep it that way. — Barry Ritholtz Copy Share
We love a tale of heroes and villains and conflicts requiring a neat resolution. — Barry Ritholtz Copy Share
