Top Five Articles from March: Warren’s Wisdom, China, and Smart Beta
1. Five Pieces of Conventional Wisdom That Make Smart Investors Look Dumb
Conventional wisdom is quite often wrong and misapprehensions can easily prevail, cemented perhaps by groupthink tendencies intrinsic to peer-influenced media, observes Mark Harrison, CFA. Are investors neglecting more difficult dimensions and taking unwarranted shortcuts in order to try and make sense of information overload?
2. The C-Suite Speaks: Warren’s Wisdom
Warren Buffett offers some classic Buffett wisdom while C-suite luminaries provide their takes on the state of the economy and their particular sectors and firms, among other issues, in this early March roundup of earnings call insights from Scott Krisiloff, CFA.
3. Sergio Marchionne Has Seen the Auto Industry’s Future: He’s Not Interested
Fiat Chrysler CEO Sergio Marchionne is making a one-way bet on cheap gas. This strategy has earned a fair degree of ridicule, but Marchionne may be onto something, according to Svi Rosov, PhD, CFA.
Systemic risk in China is arguably the highest of any country in the world. China expert Gordon Chang takes a deep dive into the country’s economic situation in a chart-filled talk with Will Ortel. The outlook they evoke is far from bullish.
5. Investors Need to Understand the Risks of Smart Beta
The low-yield environment has many investors seeking new sources of outperformance. One development has been the growth of so-called smart beta investments, a $400 billion exchange-traded fund (ETF) market with a strong flow of funds from both institutions and retail investors. But are such funds really “smart” and do they truly have the potential to boost performance? Rhea Wessel explores these questions.
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All posts are the opinion of the author. As such, they should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute or the author’s employer.
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