Investors are prone to “behaving badly” – making decisions that fly in the face of their own economic self-interest. Numerous studies highlight the behavior gap, where investors continually underperform the investments they own (see chart to the right).
Bitcoin began as an idea published on a platform aimed at the coding community, and has evolved into a widely accepted form of cryptocurrency. Throughout its volatile history, a few have made money speculating in bitcoin, despite the unregulated and opaque market which has been historically tied to illegal activity.
At Tarbox Family Office, we love indices. A financial index is the value of a "basket" of stocks that tracks large, small or international companies, to name a few. Index investing, in essence, is about getting market returns. We’ve been employing this investment strategy for decades, and it works! We’d love to introduce you to some of our other favorite types of indices.
“I’m about five inches from being an outstanding golfer. That’s the distance my left ear is from my right.” – Ben Crenshaw We admire those visionaries who seize a unique opportunity and work single-mindedly to realize their ambition and create exciting, valuable businesses. Often, when the numbers and timing make sense, an entrepreneur decides to […]
A cornerstone of Tarbox’s investment philosophy is to design a strategy based on the fact that nobody knows which stock, fund, asset class or market is going to perform the best over any short-term period. It’s difficult to decide when the market has reached its peak and it’s time to get out, and may be […]
Ms. Green and Mr. Orange are comparing their investment portfolios. Both started 20 years ago with $1 million in savings, let their assets grow for 10 years, then withdrew $150,000 (plus associated taxes) annually until today. Amazingly, they both got the same pre-tax returns on their investments and had the same investment expenses. Although their […]
In the overall scheme of things, a dip in the sale of men’s underwear wouldn’t seem like something that Alan Greenspan would focus on. As a matter of fact, the former US Federal Reserve chairman used to monitor the fluctuation in the sale of men’s boxers as a barometer of the U.S. economy. His reasoning? […]