The Long View

Our guest for this week's installment of The Long View podcast sits at the busy intersection of healthcare and financial planning. Carolyn McClanahan was a practicing physician for a number of years, but after a frustrating search for a financial planner for her and her husband, she decided to study financial planning and earned the CFP designation. In 2004, she founded financial planning firm Life Planning Partners, and serves as the firm's director of financial planning. She also co-founded Whealthcare, a software program that identifies and troubleshoots age-related financial risks. Carolyn strongly believes that individuals and financial advisors should think proactively about the implications of aging for healthcare and financial planning. She is also sought-after as a public speaker and a media expert on matters of aging, healthcare, and personal finances. Show Notes The quest for real advice: How a "math nerd" found her way to medicine and eventually sought financial advice (1:12-3:32) Frustrated: How disappointing experiences with financial advisors spurred Carolyn to pursue a career in financial planning (3:33-4:56) "It worked beautifully": Why Carolyn decided to charge flat fees for her planning services instead of taking a percentage of client's assets (4:57-6:50) "It's a lot harder": Carolyn explains why the flat-fee model isn't more commonplace, how they determine the right fee for each client, and why it makes economic sense (6:51-8:44) An "ensemble model": How Carolyn built her practice and how she hones her focus (8:45-13:01) A piece, not the whole pie: The role investments play in a client's financial plan (and how to avoid expectation gaps) (13:02-14:43) The healthcare spending conundrum: "We spend so much money on end-stage healthcare that really doesn't help anybody." (14:44-17:39) Heal thyself: "We're going to start seeing lawsuits from employees…about employers not being good purchasers of (health) insurance" (17:40-19:35) Primary care as a public service: Carolyn's ideal healthcare system puts community health centers at its core (and removes primary care from insurance coverage) (19:36-22:35) How to address the big-four "aging planning" issues: When to stop driving, when to move, when to get help with financial decisions, when to get help with healthcare decisions (22:36-26:02) How to take the keys away: Addressing the issue of aging parents who shouldn't be driving anymore (26:03-28:08) Bringing the family together: "90% of fraud and abuse is done by people close to you" (28:09-30:36) "It's been a beautiful thing to use": How Carolyn employs "engagement standards" to align expectations and ensure clients commit to the plan (30:37-32:42) Cognitive decline: "A client's biggest risk to their financial security is actually themselves" (32:43-34:33) How to plan for healthcare spends: Live healthy, work as long as you can, reflect on how you use healthcare (34:34-37:52) Whealthcare: A programmatic attempt to project and plan for healthcare costs (37:53-39:02) A construct for long-term care planning: "People who are very healthy are going to have a longer long-term care need; people with dementia have an average long-term care need; if you're very unhealthy you don't have to worry about long-term care." (39:03-42:10) Paying for long-term care: Carolyn suggests setting aside a "bucket" of money to self-fund long-term care, which avoids problems with acceptance into nursing facilities and complexity of long-term care insurance (42:11-45:20) "There's more to money than just the numbers": Why hybrid long-term care insurance isn't usually a good answer, but sometimes piece of mind makes up for its opportunity costs (45:21-47:45) How to avoid cognitive decline: It's not all hereditary, so learn as much as possible and live a healthy lifestyle (47:46-50:31) Other ways to anticipate and manage cognitive decline: How a checklist helped a client determine he was suffering a series of mini-strokes (50:32-53:29) References Caroyln McLanahan bio Whealthcare National Association of Personal Financial Advisors (NAPFA) Employee Benefit Research Institute

Our guest in this special bonus episode of The Long View podcast is Tim Buckley, chairman and CEO of the Vanguard Group, which manages over $5 trillion in assets globally. Tim took the helm at Vanguard in January 2018, succeeding Bill McNabb. Tim is a longtime Vanguard veteran, having joined the firm in 1991. Before assuming his current role, he served as Vanguard’s chief investment officer, head of its retail investor group, as well as its chief information officer. In this mini episode, which was recorded live at the 31st annual Morningstar Investment Conference in Chicago, we discuss the significance of Vanguard's recent Morningstar Award for Investing Excellence, which the firm received for exemplary stewardship. Tim also addressed how Vanguard attempts to balance growth with delivering good outcomes to clients, its capital allocation philosophy and key initiatives, the future of advice, the trend toward "free" funds, as well as the firm's recent forays into sustainable investing, among other topics. Show Notes “It’s the core of Vanguard”: What stewardship and investor-centricity has meant to the firm (0:28-1:20) Defining “client”: How Vanguard balances off the objectives of its different lines of business (1:21-2:51) Incredible scale can’t be taken for granted: Is it enough to just be a fund company? (2:52-4:15) Gazing into our crystal ball: What Vanguard looks like in 10 years and how that compares to today (4:16-5:30) Goal-setting: How Vanguard defines success and how that informs the way they run the business (5:31-6:40) The future of advice: “I can’t imagine anything but the price (for advice) coming down” (6:41-7:24) Embrace technology and personalize: Tim’s counsel to advisors who are trying to adapt to falling advice fees (7:25-8:43) “There’s no one even close to us”: What matters in a “freemium” world is the cost of the whole portfolio (8:44-10:12) Pathways to growth: The future of ESG funds and factor investing and how Vanguard tries to position these strategies to advisors and other markets (10:13-12:40) “All the money flowing to index funds--it’s not because active doesn’t work. It’s because high-cost active doesn’t work” (12:41-14:31) “You can have your cake and eat it, too, in the active ESG approach”: How to succeed with ESG investing (14:32-16:22) Best practices: How Vanguard settled on its approach to ESG investing (16:23-17:02) “We’ve looked”: Vanguard’s approach to capital investment and answering the build-vs.-buy question (17:03-18:26) “Vanguard is defined by its structure, and we’re going to keep it”: Tim on why Vanguard will never de-mutualize (18:27-19:20) References Tim Buckley, chairman and CEO, The Vanguard Group  2019 Morningstar Awards for Investing Excellence: Nominees for Exemplary Stewardship  Winners of the 2019 Morningstar Awards for Investing Excellence  Vanguard founder John “Jack” Bogle  Vanguard’s mutual ownership structure, explained  Vanguard funds snapshot page  Analyst-rated Vanguard Funds  Analyst-rated Vanguard ETFs  “Investing Crosses the Rubicon: Free Index Funds”  “Vanguard: Competitors’ Pricing Behavior is Inconsistent”  “2018 Morningstar Fee Study Finds that Prices Continue to Decline”  “Vanguard: Cost of Advice Could Fall Further” 

Our guest for this week's installment of The Long View podcast is Morgan Housel. Morgan is a partner at the Collaborative Fund, a venture capital firm that makes investments in firms that in its words are "at the intersection of for-profit and for-good." A former columnist at The Motley Fool and The Wall Street Journal, Morgan has become one of the most prolific and insightful writers on the investment decision-making process, as evidenced by his impressive body of work on the Collaborative Fund website's blog. Morgan joined us in this live recording of The Long View from the 31st annual Morningstar Investment Conference in Chicago. Our interview covered a lot of ground, from how Morgan found his way into the finance world, to the role he plays at Collaborative Fund, to a host of other personal and behavioral finance topics that draw on his work. Show Notes The accidental writer: Morgan's background and how he came to write about financial topics (0:55-3:04) "The ability to write a check is no longer a competitive advantage": What Collaborative Fund does, why Morgan was drawn to it, and the role content plays in its strategy (3:05-5:05) Authorial license: "It's really important to write what … you yourself would find interesting" (5:06-5:58) Transparency and impact: "We're looking for companies whose ability to do good is their competitive economic advantage" (5:59-8:21) Public vs. private investing: "If I made a Venn diagram of public and privates, the overlap is much greater than I ever thought it would be" (8:22-9:19) Theory vs. practice: How private-market "lock-ups" can make sense for individual investors but are still inappropriate for the vast majority (9:20-10:24) The future of public-private investing: "There's some liquidity in private markets but it’s not very efficient" (10:25-11:16) Be honest with yourself: Don't try to fight behavioral biases which can't be eliminated anyway; work around them (11:17-13:13) "That's what works for me": How Morgan reckons with his own behavioral biases (13:14-13:44) Financial advisors' job one? Don't allow events or emotions to interrupt compounding (13:45-15:52) History and psychology: "The most important intersection in investing" (15:53-18:24) Scarred, not complacent: Investors are still licking their wounds from the global financial crisis (18:25-20:12) You can't shake investors out of their experiences; it takes a new generation to come along (20-13-21:17) "There’s no other industry in the world where the rewards are as big as in finance": How big paydays can distract focus from everyday work (21:18-23:42) How fee arrangements can impact portfolio managers' risk and reward calculations (23:43-24:26) Avoiding confirmation bias and bringing in diverse perspectives: "Find someone who you admire their thought process in one aspect of thinking … but you disagree with them about something else" (24:27-26:10) A crank whose views Morgan respects--"Jake" on financial Twitter (@econompic) (26:11-26:45) "No one hires a luck manager": Morgan explains how investors tend to account for risk, but not luck, in their decisions (26:46-29:17) "Investing isn't the study of finance. Investing is the study of how people behave with money." Morgan explains why he doesn't read investing books (29:18-30:03) How people deal with uncertainty and opportunity: The importance of content aggregators and of ditching bad books (30:04-31:14) Perishable: Morgan's favorite non-investing book of the last few years is about how much things can change, on average, in everyday life (31:15-33:03) "You're not proven until you've survived a calamity": Why it’s so hard to distinguish skill from luck (33:04-35:16) Good advice (that Morgan doesn't follow himself): Carry a little bit of debt to hone your focus (35:17-36:56) "You have to pay the fee": How thinking of volatility as an ongoing price for the opportunity to grow capital can help investors put risk in the right context (36:57-38:56) Are investors giving up on investment skill? Yes, but that’s probably OK (38:57-40:41) The importance of financial planning: Telling clients the truth (i.e., that they're not on a path to a secure, comfortable retirement, not matter how much they want to believe otherwise) (40:42-43:09) On Jack Bogle: "The biggest undercover philanthropist of all time." (43:10-44:48) What matters is how well you behave: The psychology of investing (44:49-45:41) References The Collaborative Fund blog Morgan Housel’s collected works Morgan Housel, bio “You Played Yourself” by Morgan Housel (Apr. 24, 2019)  “You Have to Live it to Believe It” by Morgan Housel (Apr. 9, 2019) “Useful and Overlooked Skills” by Morgan Housel (May 1, 2019) Jake (@econompic) and Econompic Patrick O’Shaughnessy, “The Investor’s Field Guide” Abnormal Returns “The Big Change: America Transforms Itself 1900-1950” by Frederick Lewis Allen Books recommended by Charlie Munger “Origins of Greed and Fear” by Morgan Housel (Jan. 31, 2019) George Soros “A Man in the Mirror” by William H. Gross (April 2013) 10-year Treasury Rate “Counterintuitive Competitive Advantages” by Morgan Housel (Mar. 13, 2019) “Fees vs. Fines” by Morgan Housel (Apr. 2, 2019) “Statement of Principles” by Jason Zweig “When You’ll Believe Anything” by Morgan Housel (Apr. 15, 2019) Jack Bogle Morgan Housel’s tweet about Jack Bogle About the Podcast: The Long View is a podcast from Morningstar. Each week, hosts Christine Benz and Jeff Ptak conduct an in-depth discussion with a thought leader from the world of investing or personal finance. The podcast is produced by George Castady and Scott Halver. About the Hosts: Christine Benz and Jeff Ptak have been analysts and commentators on investments and the investment industry for many years. Christine is Morningstar's director of personal finance and senior columnist for Morningstar.com. Jeff is head of global manager research in Morningstar Research Services, overseeing Morningstar's team of 120 manager research analysts in the U.S. and overseas. To Share Feedback or a Guest Idea: Write us at TheLongView@morningstar.com

Our guest for this week's installment of The Long View podcast is Morningstar managing director Don Phillips. Don was Morningstar's first mutual fund analyst and eventually became CEO of the firm; he established Morningstar's independent voice and mentored scores of analysts. He also helped develop many of the tools that investors today take for granted, such as the Morningstar Style Box and the Morningstar Rating for stocks (also known as the star rating). Throughout his career Don has worked to enact positive change in the fund industry, speaking out on issues such as misleading advertising and high-fee funds as well as the need for better shareholder disclosures. In this broad-ranging interview, Don discusses his path from a paper boy investor in Templeton Growth Fund to a job analyzing mutual funds at Chicago startup Morningstar in the mid-1980s. He also opines on the industry's evolution from the opaque, sales-driven culture that he encountered 30-plus years ago to its current emphasis on transparency and very low costs. Early influences • The paper-boy years: Don’s early investing influences (1:40) • The magic of mutual funds: “Sir John Templeton is my personal money manager” (2:45) • “I had gotten married”: How an aspiring literature professor became Morningstar’s first mutual-fund analyst (4:00) Building Fund Research • “Dark days”: What it was like in the fund industry of the 1980s (5:20) • Democratizing data: When the freshest fund stats were nine months old (7:10) • Getting them to answer the phone: How Morningstar’s fund database was built (8:30) • “Putnam wouldn’t talk to us”: How pull demand (i.e., a reporter’s background notes) changed that (9:45) • “My first job was to read 777 mutual fund prospectuses” (11:20) • Don’s “el-train” indoctrination to investing (12:10) • “Not interested (click)”: Opening doors in the early days (13:00) • “It’s who you surround yourself with”: How to build a team (14:20) • “Their funds are better than some, not as good as others…”: Morningstar’s approach to serving the financial journalists that called on it (16:10) • “They found us”: Connecting with our audiences, finding our voice (17:00) Analyzing Funds, Finding Our Voice • “Let’s add a gold fund”: Behind the development of the Morningstar Style Box (18:00) • “You had to be an insider to know that Windsor was a value fund and Janus was a growth fund”: Turning the tables on fund-company marketers (19:05) • “Lies, Damn Lies, and Fund Advertisements”: Facing down a fund company’s libel suit (21:45) Achieving Better Outcomes • Low-cost trend means “better and better deals for the investor” but beware unintended consequences (23:00) • It’s not the only thing: “You can have a low-cost portfolio that’s wildly inappropriate for an investor that leads to a disastrous outcome” (25:00) • “We’re all in the behavior-modification business”: Helping people chart a path to their goals (26:40) • “I would have closed the (Vanguard) Growth Index Fund”: How the experience you create for investors determines your success in the fund industry (36:30) • Avoiding the “arms-dealer mentality”: How fund companies can ensure investors have better experiences (39:30) • “The best thing I can do for my clients…is to go on vacation”: On the wisdom of investing without tinkering, and the hazards of information overload (41:00) Active vs. Passive Investing (and Remembering Jack Bogle) • “Passive is getting more active every day”: Finding ways to evaluate algorithms and indexes (28:00) • “Jack is very much with us today”: Remembering Jack Bogle and his impact on investors and Morningstar (29:10) • “You can’t get away from arithmetic”: If cost is the enemy then investors probably aren’t overdoing it in fleeing active funds for passive (31:30) • “To me it’s not an either/or battle”: Don on the mix of active and passive funds in his personal portfolio (32:50) • Personalization as the new active: “The art of investing is matching investment to investor” (35:00) The Future of Funds, Advice, and Research • Imagining the fund industry in 10 years (and its similarity to the music business’s radical transformation): “It may be that the mutual fund is like the old LP” (42:20) • “Investors have a right to know” the ESG consequences of where their money is going (45:00) • “Digitizing process”: Using big data to assess the investment process (46:10) • “When you’re reading literature, you’re seeing the world through different eyes”: The importance of diversity to decision-making and life (47:30) • “Put it on a little piece of paper and put it in a drawer”: How investment committees can avoid knee-jerk reactions and make better decisions (48:30) • “The art of investing is the match between investment and investor”: New frontiers in fund research (52:00) • “There is fee pressure, but there’s also a lot of satisfaction”: How the advice industry evolves amid automation and declining prices (56:30) • “Fiduciary standards in general are hard to enact”: The intentions are good, but beware bureaucracy, red tape, and unintended consequences (58:30) References • Don Phillips, recipient of 2016 Matthew R. McArthur Industry Pioneer Award https://investmentsandwealth.org/news-room/2016/imca-awards-recognize-outstanding-achievement • Sir John Templeton https://www.templeton.org/about/sir-john • Wall Street Week https://www.youtube.com/watch?v=3ADn7V_l4Ws • Joe Mansueto https://www.morningstar.com/company/about-us/joe • Don’s love of the liberal arts, literature, and business https://grahamschool.uchicago.edu/news/how-liberal-arts-thrive-business-world • Don Phillips, “Reflections on Fund Management, Five Lessons from 25 Years” http://www.imas.org.sg/uploads/media/2012/10/31/519_100907_Reflections_on_Fund_Management_Five_Lessons_from_25_Years_Sep11.pdf • The Wiesenberger Books https://www.ifa.com/articles/arthur_wiesenberger_morningstar/ • Morningstar Mutual Fund Sourcebook https://images.app.goo.gl/LgzRCxK9Q3Bu77WC9 • Charles Royce https://www.roycefunds.com/people/chuck-royce • The Morningstar Style Box http://www.morningstar.com/InvGlossary/morningstar_style_box.aspx • Vanguard Windsor Fund https://www.morningstar.com/funds/xnas/vwndx/quote.html • Court of Appeal, Second District, Division 7, California.; Morningstar, Inc., and Don Phillips, Petitioners, v. SUPERIOR COURT of the State of California, for the County of Los Angeles, Respondent. PILGRIM GROUP, INC., Real Party In Interest; No. B075691. https://caselaw.findlaw.com/ca-court-of-appeal/1769980.html • ESG Investing https://www.morningstar.com/company/esg-investing • Morningtar Blog: Sustainable Investing https://www.morningstar.com/blog/tag/sustainableinvesting • Janus Funds, Super Bowl XXXI (1997), “Eyes” ad https://adage.com/videos/janus-funds-eyes/1024 • “The Evolution of Robo-Advisors”, Morningstar blog (July 2018) https://www.morningstar.com/blog/2018/07/11/robo-advisors.html • “The Importance of Asset Allocation” by Roger G. Ibbotson, Financial Analysts Journal, May/June 2010 https://www.cfapubs.org/doi/abs/10.2469/faj.v66.n2.4 • “Why Diversity and Inclusion Matter to Investors” by Dan Lefkovitz, Morningstar blog, Dec. 18, 2018 https://www.morningstar.com/blog/2018/12/18/diversity-inclusion.html • Cathy Odelbo https://www.morningstar.com/company/about-us/catherine • John Rekenthaler https://www.morningstar.com/articles/archive/208/articles-by-john-rekenthaler.html • Lori Lucas https://www.ebri.org/about/staff/lori-lucas-cfa • A Global Guide to Strategic-beta Exchange-Traded Products https://www.morningstar.com/lp/global-guide-to-strategic-beta • “Strategic-Beta Exchange-Traded Products Continue to Grow, but Show Signs of Maturity” by Ben Johnson, Morningstar blog, Mar. 27, 2019 https://www.morningstar.com/blog/2019/03/27/strategic-beta-etp.html • “Vanguard Founder Jack Bogle Passes Away” by Dan Culloton and Alec Lucas, Morningstar.com https://www.morningstar.com/articles/908054/vanguard-founder-jack-bogle-passes-away.html • Invesco QQQ Trust (which tracks the Nasdaq 100 Index) https://www.morningstar.com/etfs/xnas/qqq/quote.html • Jack Brennan, former Vanguard CEO [to find] https://en.wikipedia.org/wiki/John_J.Brennan(businessman) • Sheryl Garrett https://garrettplanningnetwork.com/about/team

Our guest this week is noted author and advisor, William Bernstein. Bill’s background and entree to finance is unique—a neurologist by training, Bill self-taught himself the principles of investing and asset allocation, eventually parlaying that knowledge into a successful financial advisory practice and a series of influential, critically acclaimed books such as "The Intelligent Asset Allocator." In this conversation, we explore Bill’s background and how it shaped his development and thinking as an investor and how he applies those lessons in working with clients who are trying to meet goals like a comfortable, secure retirement. “I had to figure out how to save and invest on my own”: Bill’s crash course into investing and constructing a portfolio (1:29) “I had to figure out how to save and invest on my own”: Bill’s crash course into investing and constructing a portfolio (1:29) • “I had to figure out how to save and invest on my own”: Bill’s crash course into investing and constructing a portfolio (1:29) • Separating the wheat from the chaff: How Bill decides what investing research matters and what doesn’t (4:30) • Top of the list: Books that profoundly influenced Bill’s investment philosophy and approach (5:45) • “The overwhelming science of investing does not speak well of active management”: Bill on why empirical data ought to settle most questions (and why active-share doesn’t hold up to scrutiny) (7:02) • “You approach it with extreme caution”: Bill explains why investors should be skeptical of most factors they encounter in the “factor zoo”, save a few (9:27) • A question that’s giving Bill pause: Is value too crowded a trade? (10:33) • Is low-volatility the most attractive factor from a behavioral standpoint? Bill worries it’s gotten too expensive. (12:02) • Fingers (and toes) crossed: Bill thinks value is cheap enough to stick with (12:55) • “Really, not very much”: Bill on how his approach to asset allocation has evolved over time (13:43) • “The riskiness of stocks is not an intrinsic characteristic of stocks; it’s more a characteristic of the investor”: Why stocks’ volatility doesn’t fluster younger investors, but freaks out older investors (14:38) • On how we tend to overrate our risk tolerance: “The difference between being able to see (losses) in a spreadsheet and actually manage (through losses) in real time is the difference between crashing an airplane in a flight simulator and in the real world” (15:38) • “If you’ve won the game, stop playing”: How to shake older investors out of their complacency with equity risk and recency bias (16:53) • “The very best physicians are consumed by self-doubt”: How a high ratio of “rumination-to-celebration” can help investors constructively reckon with shortcomings in their approach and improve (19:26) • Getting it wrong and therefore right: Bill explains how advisors can use their own fallibility and uncertainty to fortify their relationship with clients (versus scaring them to death) (21:12) • An argument with Jack Bogle: How a debate with the Vanguard founder about foreign-stock investing became an object lesson in how reality intrudes on theory (and how that informs Bill’s approach to managing clients) (22:56) • “You don’t appreciate it until bad things happen”: On whether the rally in riskier bonds has changed Bill’s tune on limiting fixed-income investments to short-term, high-grade fare (24:25) • “Investment is a process that transfers wealth to people that have a strategy and can execute it from those who don’t and can’t” (26:22) • “A reasonable hypothesis, but it got tested” (and failed): Bill on the argument for active bond investing (27:02) • Earthquakes and execrable returns: Why the best investing and economic gains have been realized in English-speaking countries. (Hint: It’s the law.) (27:48) • Emerging-markets stocks: Why they’re only a bargain when they’re cheap relative to their own history and developed markets (and still might not be inexpensive even in that case) (30:23) • Potential hazards: “The US markets are significantly overvalued relative to the rest of the world” (31:36) • “You’d have your head handed to you”: On the impermanence of investment measures, why it’s dangerous to extrapolate, and the implications for investors (32:54) • “When I think about my tombstone, ‘investment adviser’ is not one of the things I want to see up there” (34:00) • “We’re extremely choosy in who we take on. So we have a very enjoyable practice as a result of that” (35:49) • On retirement preparedness: “A slow-moving and fairly impressive disaster” (37:13) • “I don’t think the system needs nudges. I think the system needs dynamite”: Steps to radically redefine the retirement system (39:20) • “It would be nice if we had a system where people didn’t have to save quite so much, because that’s an unattainable goal for probably 80% of the population” (40:41) • The skunk-in-the-suburb analogy: We’re evolved to avoid the snake or the tiger, not to plan for retirement fifty years into the future (41:24) • What to do for investors who aren’t interested in finance or good with numbers: Limit investor autonomy, provide a generous match, offer a low-cost menu, default them into a target-date fund (43:03) • “One of the most important people in my life”: Remembering Jack Bogle (44:32) • “Something that everyone knows isn’t worth knowing”: Bill on the under-appreciated importance of corporate governance to security returns (46:46) • How Bill navigates ESG with his clients: He discourages them from pursuing it (49:25) • Principled but “bending”: How humility should make room for other ideas or priorities within a portfolio or plan (51:05)   • William Bernstein bio (CFA Institute) https://blogs.cfainstitute.org/investor/author/williamjbernstein/ • William Bernstein’s “Efficient Frontier” website http://www.efficientfrontier.com/ • Mean-variance optimization: Explainer https://www.effisols.com/basics/MVO.htm • William Bernstein’s reading list http://www.efficientfrontier.com/reading.htm • Fama and French research papers https://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=1455 • “A Random Walk Down Wall Street” by Burton G. Malkiel https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393081435/ref=sr_1_1?s=books&ie=UTF8&qid=1324493412&sr=1-1 • “Bogle on Mutual Funds” by Jack Bogle https://www.amazon.com/gp/product/111908833X/ref=dbs_a_def_rwt_bibl_vppi_i4 • “The Intelligent Investor” by Benjamin Graham https://www.amazon.com/Intelligent-Investor-Definitive-Investing-Practical/dp/0060555661/ref=sr_1_1?s=books&ie=UTF8&qid=1324493602&sr=1-1 • “The Theory of Interest” by Irving Fisher https://www.amazon.com/Theory-Interest-Illustrated-Irving-Fisher-ebook/dp/B00CR32KGK • “The Arithmetic of Active Management” by William F. Sharpe • https://web.stanford.edu/~wfsharpe/art/active/active.htm • Active Share website https://activeshare.nd.edu/ • “Presidential Address: Discount Rates” by John H. Cochrane https://faculty.chicagobooth.edu/john.cochrane/research/papers/discount_rates_jf.pdf • Value (aka “book-to-market”) factor http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/Data_Library/det_form_btm.html • Momentum factor http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/Data_Library/det_mom_factor.html • Profitability factor http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/Data_Library/tw_5_ports_beme_op.html • “Your Complete Guide to Factor-based Investing” by Andrew L. Berkin and Larry E. Swedroe • https://www.amazon.com/dp/B01N7FCW2D/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1 • Factor performance http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html#Research • Berkshire Hathaway 2018 shareholder letter http://www.berkshirehathaway.com/letters/2018ltr.pdf • “Betting Against Beta” by Andrea Frazzini and Lasse Heje Pedersen http://pages.stern.nyu.edu/~lpederse/papers/BettingAgainstBeta.pdf • “Betting Against Beta” factor vs. value factor performance (10 years ended Feb. 2019) https://www.portfoliovisualizer.com/factor-statistics?s=y&factorDataSet=-1&marketArea=0&__checkbox_ffmkt=true&__checkbox_ffsmb=true&__checkbox_ffsmb5=true&ffhml=true&__checkbox_ffhml=true&__checkbox_ffmom=true&__checkbox_ffrmw=true&__checkbox_ffcma=true&__checkbox_ffstrev=true&__checkbox_ffltrev=true&__checkbox_aqrmkt=true&__checkbox_aqrsmb=true&__checkbox_aqrhml=true&__checkbox_aqrhmldev=true&__checkbox_aqrmom=true&__checkbox_aqrqmj=true&aqrbab=true&__checkbox_aqrbab=true&__checkbox_trm=true&__checkbox_cdt=true&startDate=03%2F01%2F2009&endDate=03%2F31%2F2019 • “The Intelligent Asset Allocator” by William J. Bernstein https://www.amazon.com/gp/product/0071385290/ref=s9_simz_gw_s0_p14_i1?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=center-2&pf_rd_r=1NNWXTETT62HJ8QM9ZM6&pf_rd_t=101&pf_rd_p=470938631&pf_rd_i=507846 • “Availability” heuristic https://www.behavioraleconomics.com/resources/mini-encyclopedia-of-be/availability-heuristic/ • Dunning-Kruger effect https://www.ncbi.nlm.nih.gov/pubmed/10626367 • “Why Jack Bogle Doesn’t Own Non-U.S. Stocks” with Christine Benz and Jack Bogle (Oct. 22, 2018) https://www.youtube.com/watch?v=P54trh0Rre8 • “Will Active Stock Funds Save Your Bacon in a Downturn?” by Jeffrey Ptak https://www.morningstar.com/articles/852864/will-active-stock-funds-save-your-bacon-in-a-downt.html • “Global Stock Markets in the Twentieth Century” by Philippe Jorion and William N. Goetzmann, Journal of Finance https://onlinelibrary.wiley.com/doi/abs/10.1111/0022-1082.00133 • “Legal Determinants of External Finance” by Rafael La Porta, Florencio Lopez-de-Silane, Andrei Shleifer, Robert W. Vishny, NBER Working Paper https://www.nber.org/papers/w5879 • Online Data Robert Shiller http://www.econ.yale.edu/~shiller/data.htm • S&P 500 Shiller PE Ratio https://www.multpl.com/shiller-pe • S&P 500 Price/earnings ratio https://www.multpl.com/s-p-500-pe-ratio • S&P 500 Price/book ratio https://www.multpl.com/s-p-500-price-to-book • National Retirement Risk Index, Center for Retirement Research at Boston College https://crr.bc.edu/special-projects/national-retirement-risk-index/ • “National Retirement Risk Index Shows Modest Improvements in 2016” by Alicia H. Munnell, Wenliang Hou, Geoffrey T. Sanzenbacher, Center for Retirement Research at Boston College https://crr.bc.edu/wp-content/uploads/2017/12/IB_18-1.pdf • “In Memoriam”, William J. Bernstein, Efficient Frontier http://efficientfrontier.com/ef/0adhoc/RIP-JCB.html • David Yermack, Albert Fingerhut Professor of Finance and Business Transformation, NYU Sterm, Publications https://its.law.nyu.edu/facultyprofiles/index.cfm?fuseaction=profile.publications&personid=20547