Article Index

Wishing You A Happy Tax Season Tax season is a good time to evaluate whether your investment approach is minimizing your tax bill. This article explains the importance of two straight forward strategies: tax loss harvesting and optimization of tax deferred accounts.

Published by Alpha Architects in the early winter of 2019, Rebalancing…Not so Fast is a companion article to the one below on Warren’s options. Rebalancing, I argue, isn’t as well of a supported strategy as many investors often assume. Investors first priority should be survival.

Published by Alpha Architects in the winter of 2018, the article Warren Buffett is Wrong About Options (Except) exposes Warren’s misrepresentation of option pricing in an effort to reveal the larger truth about risk. In short, Warren (and in this case, his options) are unique so investors shouldn’t attempt to mimic his tolerance for risk.

Published by Alpha Architects in the summer of 2018, the article Buybacks: Why They Don’t Matter, Why They Do, And Why You Should Care explores both the theory (they don’t matter) and the practical evidence (actually, they do) regarding the impact of stock buybacks.The important point is to recognize the limits of both theory and data by themselves.

Published by Alpha Architects in the Spring of 2018, the article Market Volatility? Hold on and Enjoy the Ride explains why investors should largely ignore volatility given the nature of changing discount rates and expected returns.

Selected for Meb Farber’s “Best Investment Writing Vol 2”, “Passive” Investing, Theory and Practice in a Global Market argues that pure passive investing is a myth. As such, investors shouldn’t try to track an ad hoc index at the expense of cost and tax efficiency.

Your benchmark is up 9.3% so far this year, but you’re not. Should you care? This is a less academic and more practical companion piece to the “Passive” Investing article. The answer is yes, but not too much given we have neither a good definition of “the market” nor then of relative risk-adjusted performance.

Delink Past Performance from Your Financial Plan  Do not adjust your financial plan based on past performance and your current portfolio valuation. A 4% withdrawal rate has historically been a conservative assumption regardless of market performance, but the best approach to a safe retirement is mindful spending (including fees) and a smart tax strategy

2017, A Lesson in Investment Humility As is common, experts failed to predict the strong market performance of 2017 because the market is by its nature unpredictable. Investor should learn from that poor record and apply a heavy dose of humility to their own outlooks and focus on areas they can control like fees and taxes.

Published in December of 2016 by Alpha Architects, Interest Rates and Value Investing, reviews how the market determines interest rates and why real returns, independent of market forecasts, indicate that few bonds offer investors much value.

Published in October of 2016 by Alpha Architects, Digging Deeper into Closed End Fund Investment Opportunities, explores Closed End Fund valuation and theory. This is an asset class that at times can offer investors compelling risk adjusted returns.