Quotes by: Barry Ritholtz
When markets are rallying, cash in the portfolio is a drag on performance, returning about zero.
If I am going to trash others for their dumb predictions, I must at least hold myself to the same sort of accountability.
A well-designed 401(k) plan is an enormous competitive edge when recruiting and retaining employees.
Narrative drives most of economics. Everything seems to be part of a story, and how that story is told often leads to critical error.
One thing I detest most about the financial press is the lack of accountability. All sorts of nonsense is said without penalty.
What you pay for an investment is the single biggest determinant for how successful that investment will be. When equity prices are high, your returns will be lower. When they are cheap, your returns will be higher.
People who work in specialized fields seem to have their own language. Practitioners develop a shorthand to communicate among themselves. The jargon can almost sound like a foreign language.
TV producers want ratings and are willing to do nearly anything to get them. They gin up artificial conflicts and create an urgency for even the most minor of economic data points.
Gains in corporate profits depend in large part on accelerating global economic growth.
Footage of people camped out at Best Buy or elsewhere is not remotely a celebration. Rather, it's a reminder of just how economically distressed a large percentage of our populace is.
Whenever you try to pick market tops and bottoms, you are making a prediction. Guessing what stock is going to outperform the market is forecasting, as is selling a stock for no apparent reason. Indeed, nearly all capital decisions made by most people are unconscious predictions.
Amongst the financial Twitterati, the term 'muppets' has come to describe any client used and abused by some financial predator. I've adopted the term to describe portfolios that have been assembled for purposes other than serving the clients' best interests.
I credit Google for having the foresight to identify threats to its main business of selling advertising against search results. The potential loss of market share in the mobile space led them to the Android acquisition.
Commissions add up, taxes are a big drag, margin ain't cheap. A good accountant costs money as well. The math on this one is obvious, yet investors often fail to recognize it: Keep your costs low and your turnover lower, and you will win in the end.
In New York, the former lack of real competition allowed taxis to extract excessive charges, regardless of the poor service.
Getting more and more of our news from the social network is having significant repercussions for markets - and your money.
Yearly data put the rest of the noise into perspective. Most of the weekly or monthly random up-and-down movements get smoothed out. Ultimately, this is where long-term investors should be focused.
In social media, people cannot build big followings organically unless what they are putting out to the world has value.
Mutual fund managers want your money in their funds. They get paid based on assets under management.
Investing is about making probabilistic decisions with limited information about an unknowable future. The variables are well known, as are the possible outcomes.
Outcome is simply the final score: Who won the game; what numbers came up in a roll of the dice; how high did a stock go. Outcome is the result, regardless of the method used to achieve it. It is not controllable.
Many hedge fund managers have become billionaires; perhaps this - plus their reputations as the smartest guys in the room - is why they have captured the investing public's imagination.