A year ago I was struggling to solve a challenging problem. After years of dreaming, I was finally going to start my own investment fund. The problem, though, was choosing the kind of fund I wanted to run. I wanted to build a firm that was independent of Wall Street, so I could manage my […]

A Spoke Fund® is a group of separate investor accounts linked to a portfolio containing most of the liquid net worth of that fund’s manager. “Spoke Fund®” is short for “hub and spoke” model. The portfolio manager’s money is the hub and the spokes lead to each investor’s account. Any changes in the hub are […]

I believe value investing is the only rational way to invest. It’s two scoops of common sense, a healthy dollop of skepticism and a commitment to ordering off-menu entrees. While a certain level of analytical ability is required, investing intelligently is not nearly as difficult as Wall Street would like you to believe – if […]

I don’t mean building a car – see this guy to do that. I’m referring to a bond that can be converted into stock. Convertibles are hybrid securities with the features of both stocks and bonds. They usually have lower yields than regular bonds, but an owner receives the right to convert the bond to […]

Annuities seem to be enjoying a resurgence lately, thanks to the bear market. That’s a shame. Many companies sell annuity products that are so costly in terms of fees and penalties that they seem better suited for funding the salesperson’s retirement than the investor’s. Amazingly, some agents even recommend buying annuities inside an IRA, meaning […]

From the front lines of the housing bubble, and direct from the father of Cale in the Keys, here is an update on the Key West real estate market. Dad doesn’t know I posted this, but he’s been putting these reports out every month for ten years and he’s got quite a following among the […]

Kiplinger’s reports that expense ratios for stock mutual funds are rising, despite a horrific year of performance for most funds. As described in the article, when assets in a fund fall below certain “breakpoints,” management fees as a percentage of assets increase. So it could very well be the case that you, my dear mutual […]

Read something interesting lately? Post it in the comments or send it in. Why I Fired my Broker. The intro says it all: “With his 401(k) in ruins, our correspondent visits investment gurus, hedge fund managers, and a freakish Arizona survivalist with one question in mind: How can the ordinary investor recover?” Sent in from […]

Jonathon Jarvis has put together a great overview of the credit crisis in a way that everyone can understand.

Good overview last night on 60 Minutes of how 401(k) investors have been chronically disserviced by the mutual fund industry.