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The Viability of the Value Premium, Part 2: The Long Perspective

Written by Brian Puckett, CFP®, CPA/PFS, Attorney at Law.

In part 1 of this series, we examined the value premium’s origins and proposed that evidence-based investors are well-advised to keep the faith on value investing, giving due consideration to how it meshes with their personal financial goals and risk tolerances.

Still, a decade is a long time to tolerate disappointing numbers while awaiting an expected reward. For many of us, our children are about the only other misbehaving “investment” we would put up with for that long.

However, we prefer to consider value stock performance over a decade or more, since the expected outperformance can go into hiding for years, and often has.

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The Viability of the Value Premium: Part 1

Written by Brian Puckett, CFP®, CPA/PFS, Attorney at Law.

If you’ve been an evidence-based investor for a while, you know the drill. You’ve already built a low-cost, globally diversified portfolio to help you achieve your personal goals. You’ve done so by tilting your portfolio toward or away from empirically-tested long-term sources of expected returns – and their risks. When those risks arise, if your goals haven’t changed, neither should your portfolio.

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What Is Liquidity, and Why Should You Care?

Written by Brian Puckett, CFP®, CPA/PFS, Attorney at Law.

Are your investments liquid or illiquid? When a holding is liquid, you can sell it for a fair price whenever the market in which it trades is open for business. If it’s illiquid, you can’t.

Cash and cash equivalents (such as bank accounts and T-Bills) are the most liquid assets of all. At any time, you can typically find somebody who will gladly give you something worthwhile in exchange for your cash.

At the other end of the spectrum, some investments are highly illiquid, which means your ability to trade in and out of them whenever you please is limited.

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An Evidence-Based Approach to Sustainable Investing (Second of Two Parts)

Written by Brian Puckett, CFP®, CPA/PFS, Attorney at Law.

Whether they call it ethical investing or sustainable investing, a growing number of investors are concerned with “doing well by doing good.” Historically, investors who were philanthropically inclined had little choice but to seek financial returns through traditional investing, while separately expressing personal values by donating to charities.