Swensen on The Active/Passive Debate

Yale endowment guru David Swensen says investors should either be totally active or totally passive in managing their money. “There are two sensible approaches to investing — either 100 percent active or 100 percent passive,” Swensen said at the John C. Bogle Legacy Forum hosted by Bloomberg Link, according to Bloomberg. Unless an investor has access to “incredibly high- qualified professionals,” they “should be 100 percent passive — that includes almost all individual investors and most institutional investors,” he said. A big reason is that most funds are focused more on compiling fees than on increasing returns for clients, Swensen […]

Greenblatt: Less Is More In Portfolio Management

The more you try to do with your portfolio, the worse your returns will often be, according to hedge fund guru Joel Greenblatt. In a column for Morningstar.com, Greenblatt explains why investors who tried to implement his “magic formula” investing plan by themselves have fared worse than those who have asked for the plan to be professionally managed. And he says that “the best performing ‘self-managed’ account didn’t actually do anything. What I mean is that after the initial account was opened, the client bought stocks from the list and never touched them again for the entire two year period. … […]

Advice from the Best — In 10 Words or Less

Could you distill your investment philosophy into 10 words or less? In his latest post for The Wall Street Journal’s Total Return blog, Jason Zweig poses that question to some of the world’s most successful investors. Zweig says that when someone recently asked him the question, he “laughed and said, ‘Of course not!’ But right afterward, I realized to my surprise that I could. I banged this out almost instantly: Anything is possible, and the unexpected is inevitable. Proceed accordingly.” Here’s what some top investors told Zweig when asked the same question: David Herro, Morningstar Fund Manager of the Decade: Determine value. […]

Dreman Likes U.S. & Canadian Markets

Contrarian guru David Dreman says he’s finding the biggest investing opportunities right now in North American stocks. Dreman tells Canada’s Globe and Mail that over the long term — the past 25 years — the S&P 500 has basically been in a dead heat with more glamorous foreign markets. And, he adds, “There isn’t a lot of liquidity in markets in developing countries, so you’re taking extra risk for the same gain.” Asked how he would invest $100,000 right now, Dreman says he’d buy “good-quality stocks in a portfolio large enough to diversify, or, for the average investor, an index […]

Wien Sees Oil Prices Falling, S&P Rising in 2012

Blackstone’s Byron Wien has released his annual list of “surprises” for the coming year, and among the predictions are a decline in oil prices to the $85 range, the housing market hitting bottom, and the S&P 500 hitting 1,400. He tells Yahoo! Finance’s Daily Ticker that the oil prediction is based on a few factors, including the U.S. producing more oil than it did last year and natural gas production increasing due to the rise in “fracking”. “The prospect of the U.S. becoming less dependent on Middle East oil is a game changer,” says Wien. “It’s a big deal.”   […]