7 Burst results for "Jean Pharma"
"jean pharma" Discussed on Trillions
"Of the way portfolios. Were being constructed. Just pure intuition. Let me give you a specific example. Wealth was just getting into the trust. Invi advisory business or pension funds at the time and the largest client. They had whose name i remember. Vividly and will not identify had a pension fund of about a half a billion dollars and it was invested in twenty five names and his intuition was and he wouldn't stay at quite this way but that that portfolio was under diversified. Well that would go down as the understatement of the month and he and he couldn't get an answer out of the investment department that satisfied him and that is exactly why he went. It was invited to and went to this conference that ibm had put on about dominant san jose about bringing analytical procedures databases and so it just. It just was an outcropping of his intuition. Well of course he was exactly right as you work through all of this stuff that we were doing those days. One thing that struck me a lot of us. As just how representative the new york stock exchanges or isn't so we discovered that nico had collected a bunch of data on japanese for section of the tokyo exchange and wells fargo us this relationship to to nico actually to industrial bank of japan. Who in turn introduced me to nico and we got an opportunity to run some tests on the niko data and basically what we found was the same thing which is the best portfolio was the portfolio that contained all names. Same exact algorithms same assumptions. Same everything so talk about an hour sample experience. That's about as distant from from sample bias as you can get so anyway. That is kind of the base. Mccall it from which what we called. As i said we call the market market funds and we began to look at the s&p five hundred dollars. Just remember the s and p five hundred didn't actually exist until somewhere around acting fifty seven or fifty six fifty seven or eight or nine. In prior to that there were variations. Snp had but the five hundred itself. I think originated in in the early in the mid fifties. And then they went back and and back assembled the data to recalculate the s&p. Five hundred. I forgot how far quite a few decades several decades four or five decades so while they were doing that we got to know the s and p people and what was the basis upon which they chose the five hundred stocks and that made a lot of us pretty suspicious because instead of having a a random sample or some kind of like the dow thirty index which is pretty subjective as well the investment committee. Snp was choosing the five hundred. So we were kinda right back in the same puzzle but in any event. Es five hundred was becoming the benchmark by which people were judging portfolios so it was perfectly obvious at the thing you should do is just offer the five hundred at a price about a quarter of what they were selling. Investment management fourth time. Which by the way about about one hundred basis points versus twenty-five and of course now that twenty five is down to five whatever it is. The point of the matter is what was clear to us. I think pretty much at the beginning was that the portfolio the better and we were instrumental also in in getting the beginning of data collected for the american exchange and also what the otc market which became nasdaq. You mentioned the s. And you know a folio that s and p five hundred is the way to go. But that that wasn't the first fund wasn't that wasn't what you did with now every i one. Can you tell us a bit about the construction of that one while the for the first fund was actually the the all new york which was smart six hundred names but we made the mistake initially of equal weighting portfolio in our simulations and it became apparent. Right away that there was something wrong with that and of course what happened was we realized that it needed to be market. Capitalisation waited not equal weighted. Because of course what happened when you away portfolio like that as you overweight that riskiest stocks so market cap weights are were became wallow something the unambiguous preference for those kinds of portfolios but it was not the s p. It was all new york. I have a question. So and i like asking this about people who were right there at the inception moment when you locked into that moment where you're like the more stocks to better diversified portfolios better which is obviously the inception moment of what would be the index fund. Did you know it was a big idea at the time or was it just another part of your day and you had your mind on other things. Like how much did you identify the legs. This idea had well eric. Until i can tell you right now. It did not have my mind on anything else. I promise you my work week. In those in those days was about eighty hours and you know and and the wells fargo people to their credit realized that and you know within a very short time my my my wages went from eighteen thousand to forty. So i i was by far the highest paid young vice-president that at wells fargo bank. And i was the reason i got away with. It was because the chairman approved it. But if you don't think. I wasn't a conscious of the fact that we uncovered something serious now. I was all of us were. I don't mean to say that. I was alone by no means. I mean myron fisher and and we had a lot. We had a lot of influence from jack trainer. Who was a very important about this topic and the beginning And the more. We had conversations with various academics including people from mit and and berkeley and stanford and so forth but the more academic interest assert was surfaced. And i think that while the chicago guys were leading the crowd. And especially jean pharma and larry fisher and jim laurie. An and the godfather i think was really merton miller You have to give him. Probably the the seminal original.
"jean pharma" Discussed on KLBJ 590AM
"What's called factor investing, and you really basically needed to drink the Kool Aid and they had to make sure That you were going to do a good job because they didn't want fast money. They wanted people to put money in like they're supposed to in any mutual funds and leave it alone. And their strategy was based on work done by Jean Pharma and Ken French, who went on to get a Nobel Prize on and the factors they identified included. This small caps outperform large caps over a long period of time. And their so called value outperforms growth over long periods of time, But they really focus on also trading activities and being able to make sails into strength and purchases into weakness. So that's all very active. That's not passed it. It's not like a Vanguard Total stock market fund. So in September of last year, the SEC put out Ah, a ruling that essentially said that if you had an E T f you could actively manage it. And when you had a large cell order, come in. You didn't have to sell Rada ble all the issues in that portfolio to deliver to the cellar, the cash and it allowed them to then more actively managed the fun. Another other active T F South there. I'm not. I know there are but I don't know them by name, and so I would say for sophisticated investor. Who is interested in the F's and interested in academic approaches to equity and fixed income investing, but particularly equity investing. In my view, that's a very interesting story. Okay, We're good. I'll Ah, redo the podcast and get the names of the people and may be given a contact. Yeah. Research on. Yeah, OK, You bet. Thanks for calling your listening to money. Talk on news. Radio, K O B. J. Call or text 51283605 90. Love. You're on the air. How may I help have got Ah, I guess it's a regular IRA and I'm retired. I'm not putting not taking any money out of it, trying to put money into it. And sometimes I know I could put $7000 a year into it. Excuse me for interrupting you, Bob. But if you're fully retired, you don't have any any wages or independent contractor income. Is that correct? I do have income. Yes. OK, good. Then you're right. You can put money up to $7000. That's correct. Okay, so I'm thinking about selling my house and my investor says you need to take $200,000, which will be what I'll make out of the house, then put that into my investment. How do I put $200,000 into it? If I'm only allowed putting 7000 because it would be a different kind of account, Bob it would be a Bob account or if you're married a bobbin Susie account. That's what we call a taxable account, and you can open an account with your investment adviser. Besides your IRA, and there's no limit as to what you put in there, because it's all your money and you can take it out whenever you want and pay capital gains tax when you take it out, so you just opened. You then would have a minimum of two accounts, but we call a taxable or individual or joint account and then an IRA. So that's how it works. Kind of like a bank account. Well, it would except, of course, typically, a bank account is You know a low interest, stable value. And if you're going to invest the money in mutual funds or stocks or bonds, obviously you're going to look for a better return and take greater risks, too. OK, so Okay, So how do I get I still get some kind of credit. This is taxable money that I'm putting into my IRA. You know, you got me. All right. You get no tax benefit. That's correct now. You probably are not going to pay capital gains on the sale of the House. If the gains 200,000 and so that money will go into this account, and if it earns dividends, you'll pay taxes on that as you go. The vendors capital gains You'll pay taxes on that. As it goes, you'll have complete liquidity provided you bought your advisor buys your liquid types of investments on there's no text benefit. You don't get a tax deduction for doing this at all. All I get is the The interest that it made you not right. So if you say 100,000 in this account on Hey, it's worth Uh, 110 about a year later, and I take out the whole 110. Yes, I'm only gonna ask state taxes on the land. That is absolutely the case. And as long as you held him for longer than a year, you would pay Long term capital gains tax, which is lower than income tax rates. Okay, I don't make sense. I should put that money. Yeah, yeah. Couldn't figure out how he was gonna do it like 47. It's not actually going in my are no, sir. That is correct, Bob. Okay. All right. Off you go, bitch. Thanks for calling your listening to money. Talk on NewsRadio, K LBJ call or text 51283605 90. Virgil, You're on the air. How may I help you? Yeah. Call heaven answer for the woman. I was talking about minimum mandatory distribution going. Well, if she uses TurboTax R H and R Block of one of them, they have that exact same question. You get a 10 10 99 are from the custodian of the account and the amount in block. Wanna block two will be in there, And that's where That's where show answer that question or she'll put it on the tax form, so I don't know where in the heck on attacks for goes, But there's a question to that effect, but it's used TurboTax HR block, They have that. When she's on on the screen to ask her if they did get a mandatory distribution gets to 10 99 are from Nicole's story, and there's a copy for her to keep And it's informed the other copy goes to the I R. S So they know she got it. You bet they do. You can run virginal, but you cannot hide. OK. Bye bye. Thanks for calling you Listen to money. Talk on NewsRadio, K o B. J 512. 83605 90. Marianne, You're on the air. How may I help Carl? I'm Erin hadn't talked in a while. I write. My time was rolling around in your eyes. Is the weather beautiful in Houston like it is here in Austin. Is absolutely beautiful. Have a few additions were just saying the mosquitoes They're happier than anybody..
"jean pharma" Discussed on Masters in Business
"And I haven't seen it in years but I remember really loving show and was usually disappointed when was canceled. All right so we got Silicon Valley Got West Wing. GimMe One more anything you're downloading or streaming so Eric Widens Weinstein. Stan has the great new podcast called the portal. which into a lot he had peer till on the first episode and then Verner Herzog in the second episode? So that's been tossed really I love getting new. He's my favorite new media star. And that he because these somewhat like you he has very deep real conversations with Eric Weinstein. Yeah Oh okay. Wow how this is relatively new Thoughtful and insightful. Conversation right. I'm definitely checking this out. He looks vaguely familiar. This podcast does something different all right. I'm definitely they're definitely check that out. What's the most important thing people don't know about saccone I think it's at my? IRR IS ABOVE MY BMI and not as the main metric that I run by life by so you're irr is above your BMI and is this a metric that we see elsewhere. It's it's that it's the most important metric for the woman investor so you're encouraging though either very high are very low BMI. Emma you don't want to give people not learn not to so that's that's kind of interesting mostly just high. Irr You go. How about your mentors? Who who has guided did your career in the world venture investing Well so the person that really taught me venture capital and this was a long time ago. uh-huh before anyone cared about more women being in venture capital was Rob Hayes And it's quite a funny story because he's a very famous venture capitalists. Now he led the a seed round into Uber. He's been a longtime partner. At first round capital he stays somewhat under the radar but in Silicon Valley. He's extremely you know well known as what Whoa a great investor back then when he was my mentor he really wasn't. He didn't quite have that profile but I thought he was the smartest oh person investing in Vcu so I basically just showed up at his doorstep ato meteor network in said Hi. I'm Sarah and I'M GONNA learn venture capital from you. Don't worry you don't have to pay me or or anything. And he said like okay. Well you seem pretty smarten hardworking. I guess I'll teach you venture capital but real pay you. Yeah so I learned from him and it was great because back then you know he he actually had the time to really teach me. You know everything that he thought about under capital and now I got to ago. Yeah I was mentored by this extremely famous and well known venture capitalist so. That's my advice to young people. Is that when you're seeking out your mentors like seek. The people that you know are going to be famous and ten years and learned from the today I literally wrote A. I literally tweeted the other day. This is a technical indicator that I think is just jumped the Hindenburg omen and that name was was the hint at that. It's junk but I advise people. The best way to use this is only follow the signals that precede big market crashes ignore. Ignore the rest of them so you basically have the same philosophy. Go find a mentor. Who's going to be incredibly successful and famous and you find them ten years before they become successful? Just attach yourself exactly. And if you're going to be a good venture capitalist at all then you'll probably be pretty good at doing that to any other VC's influence the way you look at the world of venture investing startups. I'm really not so much influenced by other. VC's I'm I'm influenced by other areas of finance. I mean hedge funds particularly the very math heavy and research heavy hedge fund managers. I Love I have a PhD in in math that I've done a lot of our portfolio construction work with and a lot of valuation work with and we're kind of doing some advanced work there and then in in due-diligence as well I love due diligence. I describe it as a combination of library research and financial modeling spy work and gossip and it's basically the most. It's fun that you could ever have trying to understand the world and every deal we do I feel like is this incredible sort of romp through some obscure realm of of the world that I then gain a lot of knowledge about which is what I love. So I'm I'm I'm much more influenced by those investors rather than venture capitalists who. I like to mostly and make fun of the By saying that it's an it's an industry where all the decisions are made by men's guts and the guts of their wives and and I only added that last part because I was hanging that wants to a very famous and prestigious venture Cap-. I said to this very famous and prestigious venture capital. Like you know. Sometimes I feel like I'm working industry. That's really just run by men's gots and he was like Sarah is completely untrue. That is very offensive My firm has also run by right. Got Feelings of my wife. She is an incredibly important part of my firm and I was like okay. Well this so he kind of a lot of the missed the point that it was making a comment about gender I was about guts. I was making a comment about got right. Talk Talk Talk about missing the the Forest for the trees right there. Let's let's talk about books. What are some of the things you've really liked to read? What do you like to recommend? Tell us what you reading these this well. I have a twenty month year old daughter so I mainly spend my time reading to her. And there's this fantastic series of books that was rat poop so I'm not familiar with it. Sure it was. The series of books was written by a quantum physicist and it just boils scientific principles down to baby language. True true it is. It's the quantum computing for babies neural networking for baby monitor for babies. That sounds Laris so I read this to her her every day and I have for now two years just solve a holiday present issue for me for somebody who I know who's really smart and just had a baby and that's a perfect. I'm a big fan of these books. Because they're the only bucks that are both interesting to me and her so we love them and it was. It was works on both levels really does and her her fourth ward was atom so it so it was. It's it's been fantastic. We really love the books. So these are my gas and my dream in life is that someone will write these about finance so we need like monetary policy for babies option trading for babies so fun. It's really needs to happen. What what a genius idea any the other non infant books you might want to mention Even if you haven't read them recently There's a book a called meeting. Which is the book of fiction that I love made him by Norman Rash? Okay and IT'S A it's a book about you. Know sort of the main themes of my life. which are you know creating about our world and all the intricacies and human nature? That goes on that. I like it. Tell us about a time you failed eld and what you learn from the experience. Well this was one of the time so I know we have this. Mutual friend is a venture capitalist named Josh Wolff at Lux Capela. WHO's at this dinner? And so he so. The one portfolio the one company in my anti portfolio. Which is the things the company the news where you make a mistake investment? I didn't invest. He tried to get me into the seed. Round of this company called citizen and I said No. It's kind of a safe. It's an APP APP. That's safety nine. One one alert for people. I said Josh that. Is You know it would be a very important to the world. It's completely ridiculous. No one will use is that. I'm not even GonNa meet with entrepreneur and waste. Their time turned out to be completely wrong. Ten percent of New York City is now on this APP. Really Yeah and what visit to it just tells you it's like safety alerts about what is going on and then now you can also kind of take eyewitness accounts and report things to it. So you're gonNA laugh laugh about this. I Know Josh Pretty Well. And he never mentioned this company to me. But Eric Moro is my chief operating officer at our. WM Whim and she's the one who showed that apt to me and it's also site and it shows you arrest here person with a gun. They're just all all sorts of crazy things that have been filed through nine one one. They must just be scraping the information or for public source. Yeah definitely started without. And they've kind of expanded from there. Darren two more things that you can do to keep the world safe as a citizen but so my take away from that well. First of all aside from always listening to Josh Wolff. Is that you you should. You should never make venture investments with your gut. 'cause you're got is GONNA be wrong away from that didn't you learn that from the other. VC's sees wife's cut. I did I mean it's it's just amazing. How like everything just makes you like all the pressures in the industry are causing you to to feel like your gut? Is You know the best gut out of all the guts and you have to constantly be saying yourself don't make decisions. Don't make the show so true story. Want one of things. I am going to tell my war story which makes the guys in my office cringe. So I began on a trading desk. And eventually eventually you learn how do listen to your own body's reactions and I had a very identical experience to you. You where I would someone would bring me a trading ideally. I owe that company. It's the worst. And after you miss a couple of good trades that way you eventually figure out Oh if my reaction is this is the worst than most other people's reaction is. This is the worst and based on the work of Jean Pharma. It's traveled reflected in the stock price. And now it's a good opportunity to buy it so eventually I learned how to become more sensitive to my own reaction reaction to something but it took missing a lot of great opportunities to become aware of. Oh everybody must feel this way. And therefore it's a contrarian orient indicator not a don't listen to your gut is kind of the takeaway from that's an excellent way to frame it. Yes it's it's kind of interesting. I'm fascinated by by the fact that you were repulsed by a VC. Who did the exact same thing and yet human nature you can help yourself? The world is full of hypocrites and I don't exempt myself but you know at least I'm trying to you know that's not so much hypocritical as just the human condition. We can't help but be be a slave to our emotions to some degree is the only one I mean. I think more must be seized. Have more than one in this literally crazy while this literally literally a cognitive bias called the bias bias that we all have a tendency to observe these biases and other people and be completely early blind in our ourself like I'm always pointing pointing out to people. Oh your confirmation bias and and of course I'm guilty of it as anybody else but we're blind to do it. It's it's quite amazing. What do you do for fun? What do you do when you're not reading quantum physics For babies to your daughter. Well I I started this social impact venture capital firm and you might have heard of so I work a huge amount in. Don't have too much time for fun. I hear it's not legislatively I just lately mandated to have hobbies so I just don't have any war Jero or anything like that. I pretty much just work and then take care of my baby but I do. I take my baby to art. We gotta Art Galleries because we live incredibly close to the art galleries in Chelsea It's a very convenient thing for us. Is She entertained by the she loves it. And so I've started this twitter account to record her reactions to the art called Ada Baby Art critic and that's my hobby i. What are her reactions to our well? She's had this incredibly complex language of art criticism so when she it was really a little baby and she couldn't move her neck I would sort of hold her in front of the the works and then she would. She would make a little sound like when she wanted to go to the next one and sometimes she would look for our. It'd be like really so representational contemporary impression. Whatever is close by but it will geographic? Yeah geographic anything and the preference does she like. She definitely has favorite artists and they don't the disappointing thing to me is that they don't match mine so that's a good thing. Yeah I say it's good. It's good that you have your own characteristics behind. She liked while she was. I always call it. She was born born in the year of the month of site-wide Mbwe so there's a huge sites wobbly retrospective at So we went to that every single day and loves it loved. It should look at those for hours and hours so I always but now she can do even better now that she's too. Oh she's making her own works and she can. Even I think she can even do better work totally have her tastes evolved at all. They they know she tends to like show she she sheila. She seems to really like Damien Hirst a lot like the short barreled ahead. I really don't like him I think he's kind of Banal and commercial but she loves the no fraud So yeah so we so we show up urinal in the corner. She's never seen shop trump..
"jean pharma" Discussed on Capitalisn't
"Okay so it seems like the Nobel Committee's becoming a little more open minded about giving prizes too broad thinkers it there's a much more specific criterion that's important for the Nobel Prize Committee and what would that be Luigi so if you look at the statement of the price on somebody debt not only as contributed greatly to the field but also with some contribution as some practical application but improv actors if you WanNa try to predict who's going to get number price I think the first thing that you want to see is whether they are well site edge in the economic literature molded ten years ago I wrote a paper about the articles that more than five hundred citation at the time this was in two thousand and five there were only eleven authors who had at least three papers in that group of this eleven seven eight already got at the time since then got the nominal price and one of them unfortunately died so basically in this was could group of eleven they're only three that have now received a novel price yet so we're those three that didn't get the Nobel prize so one is Barrow and the other is Mike Jensen third one is David craps Robert bow is a vague good example of the Fox borrow research span across else many different aspects of Monaco why not the most important is his research on economic growth and particularly converges across country he tested whether it is true that feature countries go less and so we can hope to have a convergence solve were country at the same level of economic development which country and at least in his early walk this to be the case I think that in moist and he has the data the more mixed but at the time was pretty clear that erection ki as also very provocative paper that when a government issue debt in fact issued a promise to tax you in the future and so individuals are so rational than they understand taxes will go up in the future and so they don't see that as a net wealth but simply as a promise of future accession this India is probably too extreme but was paying for for a long period of time and quite important and also he had a maid role in the literature on microeconomics and time inconsistency the time consistency is a very simple but very important ideas that if I am a government I would like to Klay that I will never tax cap ethos so people in vast but one as they invested I'm very tempted to tax them because they can't undo fast that investment says for Mike Jensen I would say he's definitely a financial economist so to the extent that he's very much within one field maybe he's a hedgehog but within finance I think you sort of Fox or because he is known for a lot of different ideas for example Jensen's Alpha is now both in industry and enacted -demia a very popular way of measuring whether companies outperforming among other companies or the market and he's also well known for his research with meckling on the theory of the firm which among other things in forms us on how we should think about how executives make decisions I think my Jensen would be controversial candidate because he took some as strong position over the he is one of the papers these highly cited is a paper about the fact that ED executives were not paid enough that he wanted you see more pay performance TV in executive pays which by and large also meant more pay to his credit he is possessed Shinzo evolve over time he's always in war is about how the compensation my actually lead executives to lie and to bad outcome and he's most famous one is about agency cost of managers the fact that when manages round firm they might a apple pie value that firm and the reason why we need to have either contracts or financial structure to undo that risk is important driver for national decision so that that paper was Weeden back in ninety seventy six and as being extremely financial in the financial literature for the ex- almost fifty years he also shares with Jean Pharma the Mary to have invented a method that is widely used it is called the event study out to distill from the stock price the impact of particular news on the DOC price and separate to the effect of noise what happens otherwise he also call for with Gene Pharma some important walk on organizations and in particular the reputations play in discipline the board of directors the fact that they tried to behave properly in anticipation of what happens in the labor market subsequently but I think that he will be a fairly controversial figure even if he has been incredibly influential in EH field of financial economics the last person would be David Kreps at Stanford and he's best known for his work in Game Theory sequential games or dynamic games the sounds sort of complicated but I think it's actually somewhat intuitive you might have heard of the prisoner's dilemma where if you separate prisoners who let's say have done something wrong in theory might be best if they both said that they didn't do anything because then there would be no evidence that they didn't he wrong they wouldn't beautiful to extract confessions so they would both be best off if they cooperated somehow and lied and said they didn't do anything but the police are pressuring each prisoner separate league to confess or give a confession that the other person did it and if each one of those prisoners than rats out the other person they might both be in for a long sentence and so this is what's known as a one shot game by economists but there are a lot of situations in real life that are actually needed games where you have situations in which there are multiple players have to come to a decision and they have to make that same sort of decision over and over again in the course of let's say like managing a company or making some sort of corporate decision so the prisoner's dilemma might change if on the happens over and over again because you know that it's going to happen again and so in these cases something reputation might really matter like do you have reputation of being a liar do you have the reputation for cooperating and so this is the kind of work the David Kreps is done along with Paul Milgram and Robert will soon also from Stanford and they're very well cited for this work and they're probably in the running for Nobel prize if not this year than sometime soon he's walk can be used to analyze donald trump because reputation mattis if you have a reputation of being a little bit crazy people my he scared by you because in many repeated gain situation one of the problem is that you're not sure that the other person will buy through a threat because is not in Hazo her incentive but if you're crazy you do not behave always rationally that threat cons all of a sudden incredible and you can actually stare your competitors more of the people playing with you more by showing some signs that lease occasion yeah crazy so it's a very good description of the Meta rationality of trump's behavior yeah I mean I think part of the reason this work is owned financial is because it can be applied from everything to how our political leaders act to how business executives make decisions to how like children decide whether or not to lie to their parents by the way I tell you that I was in the prisoner's dilemma A few days ago you got arrested now wasn't arrested but I was trying to travel to a different country with my fiance and we had different reasons for traveling and for whatever reason to I guess the security on the US sides we're going abroad but they had security here in the US so they detained us and they separated US and they question us in different rooms so they were like looking for us to give different answers to something and I was like terrified the whole time because I knew what they were doing and part of what's difficult in our relationship is that like I go back and forth between Washington and New York a lot and so for questions like do you live together I don't really have a straight answer it seems like we're very suspicious and so we barely made the flight because they were worried that we were spies or something I think you definitely look like one thanks Luigia I'll I'll take that as a compliment absolutely Matahari Buick listen into capital isn't there's a good chance you're interested in pioneering research and groundbreaking discoveries big brains another podcast from the University of Chicago brings the work and ideas of the world's smartest thinkers straight ear buds with guests like David Axelrod if you know people if you understand something about them it's hard order to dehumanize him it's harder to hate them even if you disagree with them Richard Thaler those two words systematic bias that was the big Aha if there's systematic biases then you can make better predictions and imbuing we now in the past couple of decades have started thinking about schools not as things that we have rights to Ba- rather something that we are to consume ooh choose you'll hear the 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"jean pharma" Discussed on Masters in Business
"But I think this new, Bob hearts, shoal is a really cool show, which is about a Billy Gardell, who Mike from Mike and Molly in the pilot has a cardiac event and goes the hospital and wakes up, and there's a nurse and she's a Nigerian emigrant, and he falls for her and such a simple, sweet story. But you watch this pilot. I wanna see more wanna see these characters wanna see what's going on. So I'm really excited for that. So I only have you for a finite amount of time. Let's jump to our favorite questions that we ask our guests sort of our speed round. Tell us the first car you ever owned year making model a nineteen seventy six AM, see white hornet, would my parents got from the telephone company and meaning it was a fleet car, fleet car and got it for five hundred dollars and too much. That's a PO s for sure. I hit a telephone pole because I it was Connecticut in the spring in too much sand from the, and I told the car because it will cost six hundred dollars to fix it, so cost more just as simple repair, the whole the whole car. What's the most important thing, people don't know about Dave gash will they know about the patent. That's really so that's the I was shocked, that's thing. But I tried to start a chocolate company in the first season of big bang theory at the same time while. It was going to be called Rx chocolates, and the idea was, it was gonna be Pathak Gary bottles. And it was gonna have the amount recommended of dark chocolate every day, and you pop it in your mouth. Okay. There's a good idea. Yeah. And what happened to that? Well, it turns out, I'm much better coming up with us. I haven't starting businesses right? It's concept versus execute. Exactly. That's why you need a partner. Who are some of your early mentors who really got it your career in television. Well, I mentioned rob long who's this guy who showed me that there was actually a path, and other guy in that radio station was a teacher named Craig thorn and Hugh, has since passed away, and he just couldn't have more of an impact in terms of how to live your life, how to help people, the power is one of the funniest guys in all the years in Hollywood, one of the funniest guys have ever met and just how to how to live your really how to live your life. And then working with bunny, Terry Turner on the rock from the sun. They, they created a family in their running staff and. I'll I remember working that first night that first year to be a Friday night, and they'd say, oh, I'm sorry. We have to work past dinner, and I would think to myself, great. I don't wanna go home. This is so fun. So you're investor and have been for a while who has influenced your approach to either investing or thinking about markets. Well, I mentioned the that Gordon Murray book, which had a really profound impact on me. And, you know, I, I think the work of Jean pharma this, I wish everybody knew more broadly about the efficient market theory. If only he would win a Nobel prize for that people would find out that we'd get out, right? I took I took macro econ with Nord house. And I took winner took micro Giannakopoulos who might win it some day. Right. And didn't he win win the Bates, you want something? Right. And they. They didn't talk about personal. They should I wish they would just say be a long term investor. Keep fees, low investment abroad basket of stocks. You sound like me now. Yeah. And, and what are they going to do for the next sixteen weeks of the class?.
"jean pharma" Discussed on KOMO
"Your real life in real and Don are talking. How really simple real money issues should be the more complicated. It gets the worse off. You are. I believe in. I really do believe in this inverse relationship between complexity and returns. It just seems the complicated. Stuff ends up bad for you looked up. Yeah. Go ahead. Oh, I looked up the QR managed futures strategy fund. Yeah. Descriptive to somebody just asked me at a at a talk. I did on Wednesday. What about future should we using future? So give me your explanation of futures in one sentence. Gambling on commodities. Yeah. You have to have the price is right. Tell people the price and the date, correct? Yeah. Yeah. Yeah. Well, these guys have been betting against bonds all year. To the two to four hundred percent. Yeah. Okay. Negative on bonds. But they apparently didn't time it, right? Because their average annual return their return for two thousand eighteen yes was negative nine percent. That's on the managed futures may not on the balanced. Not. What was it not the balanced fund, the market neutral, the one before the market neutral was almost twelve percent loss and bio here's something to think about I think big picture about all this. You may have heard about. Did you get you gave the phone number? Correct. Oh, I know I need to do that again eight five five nine three five talk. Although we're not giving away books. This will so call us because we're here to help. So think about this for here. I think big pictures way to look at this. You may know a guy named Warren Buffett. I may retirement mentioned everybody laughs like oh. Of course. The oracle of Omaha. Right. The sage. Anyway. So this age of stocks. He's had a pretty good track record not the last one, by the way. A bad week one quarter of no one fifth of his fund is in apple stock. So he had a bad week last week much. Yeah. It's one fifth twenty one percent. But anyway, so Warren a longtime ago over a decade ago said, you know, what I'm tired of hearing about these hedge funds. How smart they are? You got all these PHD's you can use all these tricks saw make you bet you pick an aggregate of any goes like five hedge funds you pick the best hedge hedge fund. You picked those and I'll take the S and P five hundred. Index. Yup. Over ten years ten years, and you see who does better and the index killed them wiped them out and this the industry where they have really they've never spent more than they do today on researching companies strategies, they've never had more PHD's back there because the big money's being a hedge fund, right? I'll get rich. You saw it on billions. Right. The kid who's gonna go study under Jean pharma. Or? No. I'd rather go to work for the headline. Right. She did make Jane Fonda. Yeah. I was gonna go study under Chicago Nobel prize or no you stay here. You may get rich. They've never had that and ninety percent of the trade today in the market are done by the really smart. People the smartest guys in the end women, by the way, it's not Texas. And how did they all do? Well last year, you looked it up. Six point seven percent down the average hedge by our if there was ever a year where they were going to make more than the market that was the year. Right. Because you had the things they can say there's not enough volatility in the market can't make money when there's no volatility. There was volatility volatility. Well, the market just kinda gone straight up because the fed, blah, blah, blah, no down. Yeah. It didn't do that. And they still underperformed. I heard this argument all over the past couple of years if the market's down that's one active management is gonna shine. That's one hedge funds are going to do. Well. Well, you didn't there were some hedge? Funds that lost twenty and thirty percent last year. And so big names. So don't get sucked into that. Don't as we told you in the first hour, don't get sucked in by a major brokerage. You tells you we've got somebody will pick stocks for you. And by the way, berkshire-hathaway beat the market last year. Oh, did it. Okay. Yeah. It was only down two and two thirds percent. Because the fangs had such a great beginning. I mean, I'll bet apple for the year. Still had a good year. Eight five five nine three five talks are number and Blake Europe. Welcome to talking real money high Blake. How can we help you? Thank you for taking my call to admit. I'm. Currently only other news. Time. So if you answered this in the past, please forgive me, but listening to you a lot when it comes to an explanation on terrorism I participated in the foreign exchange market. And I thought it would ask is you believe? Whether or not. Lonzo remain inversely correlated like my broker. Thanks. Seems to me like they're molding exposed to a lot of other elements that might make that so obvious. One. What we believe is one hundred percent meaningless, not only what we believe. But what your broker believes what every expert on Wall Street believes because what they believe has no relationship whatsoever to what might happen in the future. And if you don't believe awning, call my wife, she'll confirmed that by the way, she's back that up one hundred ten maybe a hundred twenty playing the forex market. If you're playing for an exchange if you're playing bond in the relationship between stocks and bonds and currencies Blake your gambling. You are not an investor. You are a regulator unadulterated gambler by further word gambler. And let's to answer the. I don't know the odds, you don't know the odds of your gambling. You're better off going to the muckleshoot casino. At least they're you know, he's calling us from the southwest. But but I want to add one other thing like this is very important actually if last year stocks and most bonds lost money. So there is no inverse relation people believe this one of those myths if stocks goes down bonds have to go up no bacon bolt go down because why did bonds lose? Why did the prices go down last year? Because the yields went up right because interest rates went up four times by the fed raise rates four times. And I think people get confused when we talk about having bonds in a portfolio to balance against the volatility of stocks. It's not because of an inverse relationship. It is because they short intermediate high quality bonds have far less volatilities have had historically than have stocks. You can put all a lot of money in bonds, pay yourself out of that in in retirement, by the way, if you need the income before you'd have to touch the stock portfolio Blake is that helpful at all. Yes. I think so though, I would argue with the gambling side of it only because I'm not dangerous. It's long term investing to hedge against what seems to be the American economy. I don't know. But but Blake but Blake again, you just said it to hedge against what you believe are headwinds. You don't know. There are headwinds. You just believe they are there. And I just gave multiple example of PHD's who manage mutual funds who claimed to be able to do the exact same thing and failed miserably in doing. So these guys have an edge over you. And they suck at it. They have a lot of money. They've got a lot of resources. They've got a ton arenas. Gonna lose you wake..
"jean pharma" Discussed on Masters in Business
"What we see now we've seen a real transition towards us model in a significant way quite interesting what is it that you have and the firm has educated clients about that allowed them to think about investing for the long term and i know this is hindsight but i to point out if you were a buyer during the financial crisis well markets have since tripled if you were a seller probably didn't help your returns yeah i think the concept of meeting expectations is important here so when i think about why we had the kind of inflows that we had and and the performance at that transpired of that time is i think the advisers did a terrific job of educating their clients when i say educating i'm talking about what is it that we expect from the capital markets so long term if you look back to nineteen twenty six equities return ten percent but there's a lot of time periods where that ten percent isn't realized there might be markets that are down forty or fifty four so at the front what the independent advisor does is they actually do train and they educate the client as to the potential outcomes that they might expect over time so when it does happen they're not happy about it but they're not upset the point where they actually pull their money and decide to do something else so there's a there's a real important aspect here that i don't think ever been addressed in a significant way and that is trying to get people to be more comfortable with the expectations longer term around the capital markets expectations on returns are you suggesting markets go up and down is the plication bad happens yes yes that is shocking that is not what my broker just tell me back in the day so let let's talk a little bit about you mentioned merton miller earlier and obviously gene pharma is a big part of the firm you work with a number of nobel laureates and and other people of equal intellectual haft ken french dartmouth is another person who has certainly moved the needle when it comes to how we think about where returns come from what do these various people what are the roles at the firm and how do they affect portfolio construction well they're all fully engaged so when you talk about all those names and it's martin miller gene vomits ken french and it's myron scholes is on our board so we've got three or four nobel prize winners that actually are participating in the firm in some respects so the great thing about it is is is the all are actively engaged in the business in some aspect particularly with ken frenchman jean pharma there on the investment committee and they participate in all investment discussions around the firm so that a little bit intimidating you wanna do something noble laureate looks human goes no that's terrible how does that impact what the process is like is it more nuance than that no it's it's very it's what i what i come back to is we talk a lot about this at the firm we dug about models and models are not reality in models are used to get a sensible view about about a way the way things work so would dementia has always been about and i think this is why we have such a long term relationship with our clients is we're not gonna come out with anything that's that's this fancy your different just to to do it for marketing reasons we we have this this group of people that look at the capital markets empiricism they look at data all day long where they wanna come out is they want to come out with something that's that sensible that's reasonable that's repeatable there's a there's an aspect to it that from my perspective for for advisors and then for their clients that there's an expectation that we are going to deliver something that is going to be implemented in a very very robust way and that's i think big differentiator for dimensional so let let's talk about some.