Do Stock Buybacks Dilute Return of Capital to Shareholders?

For anyone that has been following the Democratic nomination race in American politics, you’ve probably noticed that a key issue has been the treatment of stock buybacks. Democratic candidates opposing stock buybacks say that they contribute to rising income inequality in the United States. The candidates have therefore proposed plans ranging from outright bans to…

Should It Be Called “Behavioural” Finance?

Despite all the resources that have gone into studying the field of finance, there is still not one concise theory that can fully explain price action in financial markets. The lack of data and presence of behavioural factors make the “laboratory” a challenging environment to control for specific variables; thus, the field of finance is…

What We Can Learn from Poker About Investment Management

Investing and poker have a lot in common. Both involve a balance of known and unknown information, and both involve updating probabilities when new information is presented. One might suggest investing is slightly trickier than poker given that the “rules” of the game can adapt over time, but at a high level both share a…

In Memory of Bill Fouse, Index Fund Pioneer

It is a common misconception that Jack Bogle and Vanguard Group created the first index mutual fund. While Bogle and Vanguard helped to bring index investing to the masses with the first public index mutual fund, it was actually William Fouse at Wells Fargo in the early 1970s that launched the first index fund marketed…