Weekend Reading – Vanguard: The Making Of An $8 Trillion Empire
Weekend Reading is a collection of Investment Research and Lifestyle topics from all corners of the Web.
We source the highest quality insights from Wall Street and Main Street that you may apply to your investment process.
Unlike the rest of Bankeronwheels.com, this series is provided without additional guidance.
As usual, everything is to be used at your own risk.
TYPE OF CONTENT
- Youtube
- Reading
- Podcast
- Academic
- Twitter Thread
In investing, you get what you don't pay for.
INVEST WISELY
This section is dedicated to research on how to invest for the Long Run using Passive Investment Strategies. Read Topics related to (i) Portfolio Construction and Asset Allocation (ii) Acting wisely by avoiding behavioural traps and also (iii) publications that help understand how financial markets work.
CONSTRUCT YOUR PORTFOLIO
How to invest in European, Japanese & Australian Markets
Some of our readers like to implement tilts towards markets that are exposed to cheaper Value Sectors in Europe and Asia.
We believe in diversified investing. But if implementing a tilt can make overall valuations more bearable for some investors so that they can stick to their strategy in the long run, it is a sin worth pursuing.
Today, we have another look at ETFs with exposure to Developed Europe and Asia. We exclude U.S. and Canadian Markets.
- How much portfolio insurance does one need? (Morningstar)
- Portfolios need more than just bonds to diversify (Monevator)
- The Right Way To Measure Yield (Peter Lazaroff - 10 Min)
- How to build a retirement paycheck from your investments (The Retirement Manifesto)
- Why Investing Like a Millionaire Won’t Necessarily Make You a Millionaire (Of Dollars and Data)
- What are robo advisors & are they the right fit for you? (Vanguard)
The math of financial planning (Rational Reminder - 1 hr 2 min)
The concept of financial math is another foundational element of investing and good economic decision-making. First, we have a look at the central idea of the time value of money, and how this plays into many areas of our finances, such as retirement planning, spending, investing, and so on. From there, the conversation goes on to cover exponential functions, the tradeoffs between saving and spending, and regrets.
HOW TO INVEST
In conversation with Myron Scholes on How To Invest Your Money (What Happens Next? - 44 min)
UNDERSTAND FINANCIAL MARKETS
- Understanding Country Risk (Aswath Damodaran)
- 5 clues this is not a bear market rally (Carson Group)
- Why European Stocks Outperform US Ones (Morningstar - 4 Min)
- Hiking Rates In a shifting economy (Joachim Klement)
- The stock market is rallying while banks remain uneasy (Pension Craft - 14 Min)
- Why the yield curve is not a reliable indicator when predicting a recession (Axios)
In conversation with Carl Kawaja on the dynamism of financial markets (Invest like the best - 1 hr 12 min)
Carl is a portfolio manager at Capital Group, where he’s quietly overseen a huge portfolio for decades. In true Kawaja fashion, the podcasts goes all over the map and discuss Apple, the Amazonian rainforest, baseball, the oil & gas industry, Muhammad Ali, and more.
ACTIVE INVESTING
This section relates to improving your knowledge about active investing. If you decide to sin, then sin only a little. Given ample evidence, combined active bets should be ideally a relatively small fraction of your portfolio.
FACTOR & Thematic investing
- There are only a handful of factors vindicated by research and growth is not one of them (ETF Stream)
- Case for emerging market small caps (Man)
- The Core Principles of Momentum Investing (Validea)
- These UK Companies Are The Most Held Across Thematic Strategies (Morningstar)
- What are the top 3 investment ideas you should consider for 2023? (AQR)
Investing on relative sentiment (Excess Returns - 47 Min )
We all often hear about the importance of sentiment in investing. But how to use it can be elusive. Ray has done extensive research on the use of relative sentiment in investment strategies and has published several research papers on the topic, including “Want Smart Beta? Follow the Smart Money: Market and Factor Timing Using Relative Sentiment”.
STOCKS
A data-driven approach to picking growth stocks and thematic baskets (Flirting With Models - 14 Min )
It’s no secret that high flying growth stocks were hammered in 2022, so here is a revisit of a conversation with Jason Thomson.
Jason is a portfolio manager at O’Neil Global Advisors, where he manages highly concentrated portfolios of growth stocks.
SUSTAINABLE investing
This section is about Sustainable Investing. You can invest in a Socially Responsible way but there are many ESG traps. Learn how to invest sustainably, and what it means for expected returns, with the our definitve guide to sustainable investing.
3 Sustainable Investing Strategies That Actually Work
There are at least three proven sustainable investing strategies.
To keep it simple, you may hold a non-screened portfolio and, use the incremental profits for philanthropy.
If you want to avoid investing in certain types of industries, e.g. Tobacco companies, you may select cost-efficient and well-diversified SRI Funds. The most active sustainable strategy is Impact Investing.
ALTERNATIVE ASSET CLASSES
FROM WALL STREET
Vanguard - The Making of an $8 Trillion Empire (FINAiUS - 37 Min)
crypto & blockchain
REMINDERS TO PUNT RESPONSIBLY
In conversation with Madoff Trader & Investor Andrew Cohen (Excess Returns - 51 min )
With the recent release of the Netflix documentary “Madoff: The Monster of Wall Street,” many of us have been learning more of the details behind the scandal. Andrew Cohen, participated in the documentary and was both a trader on the legitimate side of Madoff’s business and a victim of the Ponzi scheme. Andrew gives us an inside look at what it was like to work in the Madoff organization and takes us through the timeline of events from when he started there to when the Ponzi scheme was uncovered.
DIVE DEEPER - BOOKS & MOVIES
In the Book review section we rate some of the most relevant resources related to Financial Independence, Personal Finance and Investing. Browse All Book and Video Reviews.
15 Years On, We Fall For The Same Tricks – Madoff: The Monster of Wall Street On Netflix (Review)
The 2023 Netflix docuseries Madoff: The Monster of Wall Street dives into the largest Ponzi scheme in history, worth $64.8 billion.
Although the Madoff madness stopped in late 2008, today’s investors still fall for the very same tricks.
What exactly can we learn from this series?
Let’s have a closer look.
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Beginners often ask us:
- How do I reach my goals – What investments do I need to take into consideration when e.g. Taking a Sabbatical, buying a House or saving for Early Retirement?
- When should I invest – I fear that investing a lump sum in this market may have a negative impact on my returns. How can timing of buying ETFs affect my performance?
Advanced investors may avoid costly mistakes:
- Challenge my Portfolio – Here is my portfolio – what am I missing? What could derail my strategy? What can I do to protect my portfolio from shocks?
- Help me quickly understand – What makes Inflation Linked Bonds outperform? Bond Ladder or Bond ETFs? Why do some investors add Small Cap Value stocks to their portfolios? How can I exclude Tobacco companies from my portfolio? Are the synthetic ETFs I screened safe? What is Factor Investing?
By signing up for a financial coaching session you support our website and our investment research. Here are other ways to help.
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Book a coaching session
Beginners often ask us:
- How do I reach my goals – What investments do I need to take into consideration when e.g. Taking a Sabbatical, buying a House or saving for Early Retirement?
- When should I invest – I fear that investing a lump sum in this market may have a negative impact on my returns. How can timing of buying ETFs affect my performance?
Advanced investors may avoid costly mistakes:
- Challenge my Portfolio – Here is my portfolio – what am I missing? What could derail my strategy? What can I do to protect my portfolio from shocks?
- Help me quickly understand – What makes Inflation Linked Bonds outperform? Bond Ladder or Bond ETFs? Why do some investors add Small Cap Value stocks to their portfolios? How can I exclude Tobacco companies from my portfolio? Are the synthetic ETFs I screened safe? What is Factor Investing?
By signing up for a financial coaching session you support our website and our investment research. Here are other ways to help.
PERSONAL FINANCE
This section is dedicated to UK and European Products. It can also touch on other European jurisdictions outside the Euro-zone.
Live, Love, Later - The Ultimate Early Retirement Checklists
- The first ‘L’ is Living Life. How do you plan around life essentials while reducing unnecessary costs?
- The second ‘L’ is Loving Life. It’s usually the mismanaged L. It’s not only about the destination but also the journey and values that define you today.
- The third ‘L’ is Later Life. How to invest wisely for Early Retirement.
FINANCIAL PRODUCTS
COST OF LIVING
DESIGN YOUR LIFESTYLE
This section is dedicated to the ‘Why’ of Investing, trends or career choices.
LIFESTYLE
- Using the 90/10 rule to decide where to live (Art of Manliness)
- 11 Important Things To Think About Right Now As A Stoic (Ryan Holiday)
- Rethinking your drinking habits post dry January (Bloomberg)
- Focus on having one good day at a time (Prime Cuts)
- Get a handle on your shrinking attention span (Art of Manliness)
What are you optimising for? (ChooseFi - 1 hr 17 min)
Chris Hutchins talks about the hacks for optimizing your life, the differences between cheapness and frugality, and the importance of valuing your time and what it can lead to. Saving money is an important part of achieving FI, but you should never feel so restricted that you miss out on investing your time and money in things that bring joy and value into your life.
EARLY RETIREMENT
CAREERS
TECH & ECONOMY
James Clear, Atomic Habits — Mastering Habits, Growing an Email List to 2M+ People (2hrs)
James Clear (@JamesClear) is a writer and speaker focused on habits and continuous improvement. He is the author of the #1 New York Times bestseller Atomic Habits, which covers easy and proven ways to build good habits and break bad ones.
Travel
miscellaneous
On relationships, dating & money (Ramit Sethi - )
Christine Benz answers the question, “how much can I spend in retirement?”
FROM OUR TEAM
This website was created to provide you with all necessary resources to invest without incurring any additional costs.
Servers, data, and software are some of our costs, just to name a few. Most importantly, our time is the main resource to create great content. If you find that our guides helped you on the path to financial success, you may give us a hand by buying a coffee.
By buying us a coffee you support our website and our investment research. Here are other ways to help.
FROM OUR TEAM
This website was created to provide you with all necessary resources to invest without incurring any additional costs.
Servers, data, and software are some of our costs, just to name a few. Most importantly, our time is the main resource to create great content. If you find that our guides helped you on the path to financial success, you may give us a hand by buying a coffee.
By buying us a coffee you support our website and our investment research. Here are other ways to help.
Community
Last Week We asked you
What Lifestyle choice are you currently pursuing? (Multiple Choice Were Possible but most only selected one)
Question of the week
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All information found here, including any ideas, opinions, views, predictions expressed or implied herein, are for informational, entertainment or educational purposes only and do not constitute financial advice. Consider the appropriateness of the information having regard to your objectives, financial situation and needs, and seek professional advice where appropriate. Read our full terms and conditions.
