- Chat with an advisorLIVE CHAT
- CONTACT US |
- Call: 888-643-3133 |
- 12-Steps:
- Step 1
Step 1: Active Investors
Definitions
Problems
- 1.3.1 Active Investors are Everywhere
- 1.3.2 Active Investors are Gamblers
- 1.3.3 Active Investors Lose
- 1.3.4 The Poor Accounting of Active Investors
- 1.3.5 Stock Market Prices are Random
- 1.3.6 Stock Markets are Efficient
- 1.3.7 When Risk Capacity is not Matched with Risk Exposure
- 1.3.8 The High Cost of Turnover
- 1.3.9 The Emotional Stress of Active Investing
- 1.3.10 More than 1,500 Investors can be Wrong
- Step 2
Step 2: Nobel Laureates
Definitions
Solutions
- Alfred Nobel
- Blaise Pascal
- Edmund Halley
- Adam Smith
- Louis Bachelier
- Alfred Cowles
- Harry Markowitz
- James Tobin
- Frank Modigliani
- Merton Miller
- William Sharpe
- Paul Samuelson
- Eugene Fama
- Michael Jensen
- Rex Sinquefield
- Friedrich von Hayek
- Burton Malkiel
- John Bogle
- David Booth
- Kenneth French
- Who Do You Trust?
- Market Forces: May They Be With You
- Step 3
Step 3: Stock Pickers
Definitions
Problems
- 3.3.1 Why Stock Pickers Fail
- 3.3.2 The Stock Picker’s Graveyard
- 3.3.3 Incubator Funds
- 3.3.4 Studies and Observations that Show the Daunting Odds of Stock Picking
- 3.3.5 Stock Pickers and Coin Flippers
- 3.3.6 Stock Pickers are Focused on Short Term
- 3.3.7 Stock Pickers are Style Drifters
- 3.3.8 Stock Pickers are Looking for a Needle in a Haystack
- 3.3.9 Stock Pickers Play a Zero Sum Game
- 3.3.10 Stock Pickers in International Markets
- 3.3.11 Stock Pickers in Small-Cap Markets
- 3.3.12 Stock Pickers Pay More Taxes
- 3.3.13 Stock Picking Gurus and Their Real Records
- 3.3.14 Stock Pickers Don’t Want You to Know the Truth
- Step 4
Step 4: Time Pickers
Problems
- Step 5
Step 5: Manager Pickers
Problems
- Step 6
- Step 7
Step 7: Silent Partners
- Step 8
Step 8: Riskese
Definitions
- 8.2.1 Standard Deviation
- 8.2.2 Probability Distributions and Histograms
- 8.2.3 Mean Reversion
- 8.2.4 Expected Return
- 8.2.5 Rolling Period Returns
- 8.2.6 Risk
- 8.2.7 The Dimensions of Stock Return
- Market Risk Factor
- Size Risk Factor
- Value Risk Factor
- Term Risk Factor
- Default Risk Factor
- 8.2.8 Implications of the Fama/French Three-Factor Model
- 8.2.9 Time Diversification of Risk
Problems
- Step 9
Step 9: History
- Step 10
Step 10: Risk Capacity
Definitions
Problems
- Step 11
Step 11: Risk Exposure
Definitions
Problems
Solutions
- 11.4.2 Index Mutual Funds Earn more Return and Eliminate more Risk
- 11.4.3 The Most Efficient Funds on the Market
- Small Cap Strategy
- U.S. Small-Cap Strategy
- U.S. Micro-Cap Strategy
- Value Strategies
- U.S. Small-Cap Value Strategy
- U.S. Large-Cap Value Strategy
- Real Estate Securities Strategy
- U.S. Large Company Strategy
- Developed International Markets
- Emerging Markets
- Fixed Income
- 11.4.4 Are Commodities Worth the Risk?
- 11.4.5 Matching People with Portfolios
- Step 12
Step 12: Invest and Relax
Definitions
- 12.2.1 Registered Investment Advisers
- 12.2.2 Dimensional Fund Advisors
- 12.2.3 Rebalancing Portfolios
- 12.2.4 Rebalancing Formula
- 12.2.5 Tax Loss Harvesting
- 12.2.5a Mutual Fund Distributions
- 12.2.5b Cash Withdrawal Considerations
- 12.2.6 Financial Advice
- Estate Planning
- Insurance
- Accounting and Tax Advice
- Investment Advisors
- Life Planning
- The Glide Path of Life and Your IFA Index Portfolio
- Retirement Planner
Problems
- 12.3.1 Active Investors Procrastinate
- 12.3.2 Active Investors "Go It Alone"
- 12.3.3 The Media Wants Investors to Worry
- Asset Allocation
- Minimization of Investment Costs
- Minimization of Taxes
- Reliable Investment Performance
- A Simple and Understandable Investment Strategy
- An Easier Way to Track Investment Performance
- Increased Leverage and Compounding
of Investment Wealth - Invest like Institutional Investors
Paul Samuelson Farewell to the Eminent Economist Paul Samuelson (1915-2009) Recently, on December 13, 2009, we lost one of the
great economic minds of the past century in Paul Samuelson. As
America’s first Nobel Prize winner in economics
in 1970, he revolutionized economic theory with his
textbook Economics in 1948. While Samuelson
was first beginning to formulate his theories on market
behavior, he stumbled upon the thesis of Louis Bachelier,
a French mathematician who is credited as the first
man to write a paper using advanced mathematics to
study finance. It was these theories and formulas
that stirred Samuelson’s passion for using mathematics
in investing at a time when recklessly playing the
stock market was en vogue. Samuelson once said, "Investing should be dull, like watching paint dry or grass grow. If you want excitement, take $800 and go to Las Vegas. It is not easy to get rich in Las Vegas, at Churchill Downs, or at the local Merrill Lynch office." Listening to an investor guess as it pertains to certain stocks is no different than playing roulette at the Bellagio. Because of Samuelson’s belief that the stock is more or less at its fair value due to our free market, your chances of it going up or down are not much different than betting on red or black. It was on Samuelson’s leading and groundbreaking principles that index fund investment strategies began to take shape. He was an iconic leader of the indexing revolution that has led to the groundswell of institutional index investing. Investors across the globe have Paul Samuelson to thank for teaching us all that, rather than betting on the wisdom of the few, we should rely on the knowledge of the masses and invest in a capitalism-driven market that has been giving risk-adjusted returns of about 10% for the past 80 years. Click here to read more of Paul Samuelson's work on Market Theory and his contribution to Investing. Samuelson's Interview on Random Walk Theory
Click here to see additonal news and stories about Paul Samuelson |
||||||||||
- 12-Steps:
- Step 1
Step 1: Active Investors
Definitions
Problems
- 1.3.1 Active Investors are Everywhere
- 1.3.2 Active Investors are Gamblers
- 1.3.3 Active Investors Lose
- 1.3.4 The Poor Accounting of Active Investors
- 1.3.5 Stock Market Prices are Random
- 1.3.6 Stock Markets are Efficient
- 1.3.7 When Risk Capacity is not Matched with Risk Exposure
- 1.3.8 The High Cost of Turnover
- 1.3.9 The Emotional Stress of Active Investing
- 1.3.10 More than 1,500 Investors can be Wrong
- Step 2
Step 2: Nobel Laureates
Definitions
Solutions
- Alfred Nobel
- Blaise Pascal
- Edmund Halley
- Adam Smith
- Louis Bachelier
- Alfred Cowles
- Harry Markowitz
- James Tobin
- Frank Modigliani
- Merton Miller
- William Sharpe
- Paul Samuelson
- Eugene Fama
- Michael Jensen
- Rex Sinquefield
- Friedrich von Hayek
- Burton Malkiel
- John Bogle
- David Booth
- Kenneth French
- Who Do You Trust?
- Market Forces: May They Be With You
- Step 3
Step 3: Stock Pickers
Definitions
Problems
- 3.3.1 Why Stock Pickers Fail
- 3.3.2 The Stock Picker’s Graveyard
- 3.3.3 Incubator Funds
- 3.3.4 Studies and Observations that Show the Daunting Odds of Stock Picking
- 3.3.5 Stock Pickers and Coin Flippers
- 3.3.6 Stock Pickers are Focused on Short Term
- 3.3.7 Stock Pickers are Style Drifters
- 3.3.8 Stock Pickers are Looking for a Needle in a Haystack
- 3.3.9 Stock Pickers Play a Zero Sum Game
- 3.3.10 Stock Pickers in International Markets
- 3.3.11 Stock Pickers in Small-Cap Markets
- 3.3.12 Stock Pickers Pay More Taxes
- 3.3.13 Stock Picking Gurus and Their Real Records
- 3.3.14 Stock Pickers Don’t Want You to Know the Truth
- Step 4
Step 4: Time Pickers
Problems
- Step 5
Step 5: Manager Pickers
Problems
- Step 6
- Step 7
Step 7: Silent Partners
- Step 8
Step 8: Riskese
Definitions
- 8.2.1 Standard Deviation
- 8.2.2 Probability Distributions and Histograms
- 8.2.3 Mean Reversion
- 8.2.4 Expected Return
- 8.2.5 Rolling Period Returns
- 8.2.6 Risk
- 8.2.7 The Dimensions of Stock Return
- Market Risk Factor
- Size Risk Factor
- Value Risk Factor
- Term Risk Factor
- Default Risk Factor
- 8.2.8 Implications of the Fama/French Three-Factor Model
- 8.2.9 Time Diversification of Risk
Problems
- Step 9
Step 9: History
- Step 10
Step 10: Risk Capacity
Definitions
Problems
- Step 11
Step 11: Risk Exposure
Definitions
Problems
Solutions
- 11.4.2 Index Mutual Funds Earn more Return and Eliminate more Risk
- 11.4.3 The Most Efficient Funds on the Market
- Small Cap Strategy
- U.S. Small-Cap Strategy
- U.S. Micro-Cap Strategy
- Value Strategies
- U.S. Small-Cap Value Strategy
- U.S. Large-Cap Value Strategy
- Real Estate Securities Strategy
- U.S. Large Company Strategy
- Developed International Markets
- Emerging Markets
- Fixed Income
- 11.4.4 Are Commodities Worth the Risk?
- 11.4.5 Matching People with Portfolios
- Step 12
Step 12: Invest and Relax
Definitions
- 12.2.1 Registered Investment Advisers
- 12.2.2 Dimensional Fund Advisors
- 12.2.3 Rebalancing Portfolios
- 12.2.4 Rebalancing Formula
- 12.2.5 Tax Loss Harvesting
- 12.2.5a Mutual Fund Distributions
- 12.2.5b Cash Withdrawal Considerations
- 12.2.6 Financial Advice
- Estate Planning
- Insurance
- Accounting and Tax Advice
- Investment Advisors
- Life Planning
- The Glide Path of Life and Your IFA Index Portfolio
- Retirement Planner
Problems
- 12.3.1 Active Investors Procrastinate
- 12.3.2 Active Investors "Go It Alone"
- 12.3.3 The Media Wants Investors to Worry
- Asset Allocation
- Minimization of Investment Costs
- Minimization of Taxes
- Reliable Investment Performance
- A Simple and Understandable Investment Strategy
- An Easier Way to Track Investment Performance
- Increased Leverage and Compounding
of Investment Wealth - Invest like Institutional Investors
Backtested Performance Info | Terms of Use | IMPORTANT DISCLOSURES
Index Funds Advisors, Inc. — 19200 Von Karman
Ave., Suite 150 — Irvine, CA 92612
Call Toll Free: 888-643-3133 — Local Phone: 949-502-0050 — Fax: 949-502-0048 — Email: 
For several other offices and representative locations, see About Us.