Featured entries from our Journal

Details Are Part of Our Difference

Embracing the Evidence at Anheuser-Busch – Mid 1980s

529 Best Practices

David Booth on How to Choose an Advisor

The One Minute Audio Clip You Need to Hear

Tag: DFA

2017: Still Practicing Rationality Under Uncertainty

 

We can’t — and won’t try to — tell you what 2017 has in store for investors. But we can tell you that our approach to managing whatever does unfold remains the same. Here are a couple of inspirational quotes from other respected voices who share our perspective about the road ahead.

From Financial Author & Coach Nick Murray …

“The nature of successful investing, as we see it, is the practice of rationality under uncertainty. We’ll never have all the information we want, in terms of what’s about to happen, because we invest in and for an essentially unknowable future. Therefore we are dedicated to the principles of long-term investing that have most reliably yielded favorable long-term results over time: planning; a rational optimism based on experience; patience and discipline. These will continue to be the fundamental building blocks of our investment advice in 2017 and beyond.”

From Dimensional Fund Advisors’ paper, “Prediction Season” …

“In the end, the only certain prediction about markets is that the future will remain full of uncertainty. History has shown us, however, that through this uncertainty, markets have rewarded long-term investors who are able to stay the course.”

InBev Anheuser-Busch: One Step Forward, Two Steps Back?

A-B-image-350pxWhile nostalgia can be an effective way to market beer, in my opinion, it’s no way to manage a brewery’s 401(k) plan. At least not if it hearkens back to a time when it was routine for plan sponsors to load up a 401(k) plan with high-cost investment selections and expect participants to sort it out for themselves.

This is what I fear has happened when InBev Anheuser-Busch (A-B) proudly announced nine additions to its 401(k) plan investment current lineup of low-cost, passively managed index funds. Much to my disappointment, the additions represent a confusing mix of mostly active funds.

When I was assistant treasurer at A-B in the mid-80s, I was proud to help the company become one of the first in the nation to replace all active funds with index funds in both its 401(k) plan lineup and pension plan investments. Our early leadership has since become common practice, buttressed by the empirical evidence on how to advance retirement plan participants’ successful outcomes.

There is a glimmer of hope in the mix. Dimensional Fund Advisors appears to be among the firms A-B announced in its new “active management” lineup. While Dimensional offers a different strategy from traditional indexing – something we refer to as “evidence-based investing” – it’s not traditionally active either. Dimensional is itself a leading advocate of avoiding largely fruitless attempts to beat the market through stock-picking or market-timing.

Even with this positive exception, I feel the new lineup still represents an unfortunate shift, sacrificing better choices on the altar of more choices.

Maybe I’m being nostalgic, but the A-B I knew, knew better.

Wall Street Journal “Discovers” DFA and Passive Investing

passivista

While we don’t think of ourselves as the passive types, it’s interesting to see The Wall Street Journal shine its bright spotlight on passive investing and related evidence-based investing in its new series, “The Passivists.”

You can browse the entire series, or here are a couple of our favorite installments:


The Dying Business of Picking Stocks,  Anne Tergesen and Jason Zweig

News flash! “Investors are giving up on stock picking.” Our take on the matter: It’s about time.

Making Billions With One Belief: The Markets Can’t Be Beat, Jason Zweig

Featuring Dimensional Fund Advisors, with founder, chairman and co-CEO David Booth reflecting that “A little bit of judgment can make a difference.”


As the media turns its attention to the types of investment strategies we’ve been employing at Hill Investment Group since our founding, we wonder whether this will be a passing fad, a lasting improvement for investors or (as is so often the case in life), a little of both. Whatever. We’ll enjoy the wider coverage while it lasts, and still be encouraging you to Take the Long View with your investments, long after the spotlight has moved on.

Featured entries from our Journal

Details Are Part of Our Difference

Embracing the Evidence at Anheuser-Busch – Mid 1980s

529 Best Practices

David Booth on How to Choose an Advisor

The One Minute Audio Clip You Need to Hear

Hill Investment Group