Is there such a thing as a better mouse trap? This week’s Financial Thought Leader guest has created an alternative to traditional index funds. Instead of being based on market capitalization or stock price, his Fundamental Index® approach measures fundamentals such as sales, profits, and dividends to determine the weight securities have in his indexes. Research Affiliates Chairman and CEO Rob Arnott explains why fundamentals can make a big difference.
Great interview on indexing, investment process and more with Rob Arnott. Check it out below!
Yost Partners was up 0.8% for the first quarter, while the Yost Focused Long Funds lost 5% net. The firm's benchmark, the MSCI World Index, declined by 5.2%. The funds' returns outperformed their benchmark due to their tilt toward value, high exposures to energy and financials and a bias toward quality. In his first-quarter letter Read More
Be Open To New Investment Ideas But Don’t Bet The Farm On Them
-Fundamental Indexation – Weights stocks based on key fundamentals, not price. -Fundamentals can include revenues, earnings, cash flow, book value, dividends, etc.
Fear Creates Bargains
Consider Emerging Markets Stocks and Bonds
What does Financial Thought Leader and portfolio manager Arnott do to unwind from his intensive schedule of research, investing and financial innovation? He describes his “geeky hobby.”