Monthly Archives: February 2012

The Greater Fool Theory and Investing

Posted on February 29, 2012 by Dan Solin

The greater fool theory (GFT) refers to those who buy an investment based on the premise they will be able to sell it at a profit to a “greater fool.” Many investors subscribe to this theory, but don’t know they … Continue reading →

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The Sizzle or the Steak: Exotic Market-Linked CDs

Posted on February 28, 2012 by Roger Trinwith

By Roger Trinwith With investors scouring the metaphorical earth and turning over its rocks for “safe” investments that provide yields in excess of inflation, it comes as no surprise that Investment Banks have started selling record numbers of exotic market … Continue reading →

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Can You Pay an Active Manager to Beat the Market for You?

Posted on February 28, 2012 by Jay Franklin

Question: When was the last time you walked into Wal-Mart and found $20 bills on sale for $10? I am guessing never. It might not occur to you that your hope of finding a manager with true skill (i.e., the … Continue reading →

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Who Has the Midas Touch?

Posted on February 23, 2012 by Mark Hebner

Over the course of a lengthy and illustrious business career, Warren Buffett has offered thoughtful opinions on a wide variety of investment-related issues—executive compensation, accounting standards, high-yield bonds, derivatives, stock options, and so on. In regard to gold and its … Continue reading →

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A Stock-Picker’s Market?

Posted on February 23, 2012 by Jay Franklin

Of all the nonsensical terms that pervade the financial media, there are few that reach the stupidity level of “a stock-picker’s market.” It is a refrain often heard at the beginning of the year, particularly when the stock-pickers (i.e., active … Continue reading →

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A Sane Explanation for Insane Behavior

Posted on February 22, 2012 by Dan Solin

It seems like no week goes by without another action by the SEC alleging insider trading or other misconduct by members of the securities industry. This week was no exception. According to a litigation release issued Feb. 17, 2012,the SEC … Continue reading →

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A Sane Explanation for Insane Behavior

Posted on February 21, 2012 by Mark Hebner

by Dan Solin It seems like no week goes by without another action by the SEC alleging insider trading or other misconduct by members of the securities industry. This week was no exception. According to a litigation release issued Feb. 17, … Continue reading →

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Invest With the Silent Minority

Posted on February 18, 2012 by Mark Hebner

by Dan Solin A routine report from Morningstar contains some great advice for investors, if you know how to interpret it. The report notes that passively managed funds (basically index funds) had a net inflow of more than $76 billion in 2011. … Continue reading →

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Morningstar’s Fund Manager of the Year: A Slippery Slope

Posted on February 15, 2012 by Dan Solin

I previously cautioned investors about the perils of relying on various lists of “best fund managers.” One of the most popular of these lists is issued annually by Morningstar, which annually designates a “Fund Manager of the Year” in various … Continue reading →

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The End of Wall Street as We Know It—And We Feel Fine

Posted on February 14, 2012 by Jay Franklin

Lately there has been a great deal of news coverage of the ever-shrinking pool of bonuses awarded to the traders and investment bankers of the too-big-to-fail Wall Street firms. At UBS, for example, certain highly compensated employees will have to … Continue reading →

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