Advisor’s Alpha

Vanguard’s paper correctly outlines both the perceived and actual areas in which advisors add value or “alpha” for their clients.  Advisors tend to spend far too much time on the perceived value of market timing and investment selection, which more often than not detracts from performance.  The actual value-add, on the investment side, is in developing a customized asset allocation, rebalancing, tax-efficient investing, and ensuring that investors remain disciplined and informed through tumultuous periods in the market.  On the non-investment side, advisors can serve as an advocate to help individuals organize, document, and understand their entire financial situation.

Link  |  Advisor’s Alpha (

Dying Man’s Wish

ABC Nightline, 1/19/11
This is an interesting story about a dying man’s wish to bring the knowledge of Wall Street to Main Street.  Knowing that he had only months to live, this former Wall Street executive felt so passionate about his message that he spent his remaining time spreading the word about how investors could do better by taking a simpler, more regimented approach.  Watch this video to find out for yourself what insight Gordon Murray had that drove him to act with such purpose.

Link | Gordon Murray, Hero of Wall Street (

Investing Truths

This is one of our favorite interactive tools available for individual investors to understand the importance of minimizing costs, controlling your emotions, investing for the long-term, and managing risk.  Each tool on this website highlights an important core principle behind successful, long-term investing.  For example, see for yourself by clicking on The Truth About Costs to see how seemingly small differences in expenses can dramatically erode returns  over time.

Link | Investing Truths (

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