index funds

  • News

    84-Year-Old Man Happy To Take Pension Fund’s Money For Advice He’s Been Giving Away For Free Since Time Immemorial

    A suburban Philadelphia pension fund drove a dozen miles to have Vanguard’s Jack Bogle tell […]

    / Jun 21, 2013 at 1:39 PM
  • This is CalPERS's headquarters. Obviously we're not big fans of impersonal pictures here, so I apologize. To humanize it a bit, I'll point out that this picture is from the website of Alliance Roofing, Northern California's leading commercial roofing and waterproofing contractors, who I suppose (I hope?) put the roof on CalPERS's headquarters. (It'd be funny if they didn't though. "Here's a nice roof, let's use that one.") Contact them - their website is www.allianceroofingcal.com - for all your roofing needs.

    News

    Don’t Do It, CalPERS!

    What is CalPERS’s job? There’s actually an answer: it’s to “Provide responsible and efficient stewardship […]

    / Mar 26, 2013 at 3:07 PM
  • News

    Robert Shiller Has 1/1,000,000,000,000th Of Greece He’d Like To Sell You

    Here’s a delightful idea that is also a nice piece of synergy. Apparently Yale economist […]

    / Feb 22, 2012 at 2:47 PM
  • Are these NYSE traders? I don't care. I love this picture.

    News

    The Smart Indexes Are Even Worse Than The Dumb Ones*

    You may have heard that the Dow hit 13,000 today before subsiding to a shameful 12,965.69. You may not have heard this, or cared, because the Dow is for morons, being a price-weighted index of thirty semi-random companies that, gah, aren’t even “industrial” any more.** There are alternative theories but those theories are wrong:

    Joe Weisenthal in defense of the Dow has been noting its very high correlation with other, broader, more sensible indexes. I see this as further undermining the Dow’s legitimacy. If it’s very different methodology were leading to some kind of meaningfully different result, then we could perhaps argue that it’s adding value in some kind of way. But instead what’s going on is that the Dow’s creators are hand-picking which stocks to include in the index specifically with an eye toward constructing an index that mirrors the other, better indexes out there. Apple and Google, for example, aren’t in the Dow and aren’t doing to get in any time soon because their very high share prices would skew the index in weird ways. This just goes to show that the Dow’s creators already “know” the right answer (from looking at the S&P 500 and the Wilshire 5000) and then are trying to assemble an index to create the predetermined result.

    Maybe! An alternative theory is maybe suggested by [Occam’s razor and] this piece from the Journal this weekend about index funds that I just loved and so am now going to inflict on you at unnecessary length:

    / Feb 21, 2012 at 6:46 PM
  • News

    Bernie Madoff Beaten Up By “Beefy” Inmate, Offering Investing Advice To Friends On The Inside

    Remember back in December, when it was reported that Bernie Madoff got the shit beat […]

    / Mar 18, 2010 at 10:00 AM