Risks and Costs of Socially Responsible Investing
Socially responsible investors don’t want their money to support companies that do things they disapprove of, such as selling tobacco, alcoholic beverages or weapons. They may be willing to sacrifice some financial returns for their convictions—but how much must they give up? In one of the first studies of socially responsible investing on a risk-adjusted basis, Wharton’s Christopher C. Geczy, Robert F. Stambaugh and David … [ Read more ]
Content: Article | Source: Knowledge@Wharton | Subjects: Finance, Social Responsibility (ESG) | Industry: Investing
CEOcast
CEOcast is a financial news site for investors that specializes in interviews with chief executives of small- to medium-sized public companies. The CEOs are given a chance to describe their businesses and then are questioned about recent financial results. Not exactly hostile interviews, these sessions are nevertheless an interesting chance to hear top execs discuss their industries and how they run the business. What we … [ Read more ]
Content: Article | Source: CEOcast | Subjects: Industry Specific, People | Industry: Investing
Why So Many People (Not You, Of Course) Made So Many Brain-Dead Investments (And How Not to Make Them Again)
Behavioral economists seek to explain why we so often make financial choices that are, to put it bluntly, really damn stupid.
Content: Article | Author: Gary Belsky | Source: Business 2.0 | Subjects: Organizational Behavior, Personal Development | Industry: Investing
Stress and Short-Termism (.pdf)
We always assume rationality of our market participants, but are they? Are you? One argument against this rationality is the way humans are “wired.” As a result of this wiring homo sapiens have developed a fight or flight response that while may serve us well in the event of physical danger, may be counter productive when facing financial risks. That is … [ Read more ]
Content: Article | Authors: Kristen Bartholdson, Michael J. Mauboussin | Source: FMA | Subject: Finance | Industry: Investing
Now, Dow?
How an irrelevant index survived the tech meltdown.
Editor’s Note: If you don’t know what the DJIA really is (or if you’re not sure), read this…it’s really interesting. For more instruction on the basics of market indices finance, visit
Content: Article | Author: Daniel Gross | Source: Slate | Subjects: Finance, Industry Specific | Industry: Investing
Mapping Out Your Options
Treat these employee perks as a real part of your portfolio, not as a lottery ticket.
Content: Article | Author: Lewis Braham | Source: BusinessWeek | Subject: Finance | Industry: Investing
Analyze This
Josef Lakonishok says stock prices are driven by gut-wrenching emotion that smart investors can exploit. Eugene Fama says an efficient market governs prices, which means stock picking is a cruel illusion. When both invest, who does better?
Editor’s Note: See another article on this theme, ‘Is That a $100 Bill Lying on the Ground? Two Views of Market Efficiency’, at
Content: Article | Author: Seth Lubove | Source: Forbes | Subject: Finance | Industry: Investing
The 14-Year Bear Itch
Article takes a look at historical bull and bear runs that occur in roughly 14-year cycles (secular = major multi-year trends in Wall Street speak).
Content: Article | Author: David Simons | Source: Forbes | Subjects: Economics, Finance | Industry: Investing
Should You Follow the Insiders?
Mimicking their trades in company stock is no sure road to riches.
Content: Article | Authors: David Henry, Timothy J. Mullaney | Source: BusinessWeek | Subject: Finance | Industry: Investing
Bet With the Pros
Institutions spend $50 billion a year selecting stocks. Here’s how to tap their knowledge for free.
Content: Article | Author: Ira Carnahan | Source: Forbes | Subjects: Finance, Industry Specific | Industry: Investing
Out of Options
High-tech companies and their investment bankers have a cozy symbiotic relationship regarding stock options. Caught in the crush is a new victim: the worker.
Content: Article | Author: Neil Weinberg | Source: Forbes | Subjects: Finance, Human Resources | Industry: Investing
Warren Buffett’s Investment Checklist
How would your firm look to the premier investor? What does great investment potential look like to Mr. Buffett? Here’s his checklist.
Content: Article | Source: CEO Refresher | Subject: Management | Industry: Investing
Charities 2001
Donating to charities shouldn’t be risky. But whether you’re donating $50 or millions, it’s important to make sure the money will be well-spent. Below you’ll find the complete data from Forbes’ annual survey of 200 charities. The list reveals which charities are raising funds most efficiently and which charities are stumbling with your money. It also includes the highest salaried position of each organization. A … [ Read more ]
Content: Article | Source: Forbes | Subjects: Nonprofit, Social Responsibility (ESG) | Industry: Investing
Is Your Company Nudging the Numbers?
Pressure to meet the numbers is greater than ever. But don’t let your company issue a misleading earnings report. An excerpt from the Harvard Business Review shows how to spot signs of trouble.
Content: Article | Authors: H. David Sherman, S. David Young | Source: Harvard Business School (HBS) Working Knowledge | Subjects: Accounting, Finance | Industry: Investing
Separating Winners from Losers
High book-to-market (B-to-M) firms tend to be in poor financial health, as reflected by their low stock prices and poor earnings performance. Yet research consistently shows that a portfolio of these “value” firms outperforms both the overall market and portfolios comprised of low B-to-M “glamour” firms.
The reason for this is because a small number of high B-to-M firms are strong enough to raise the … [ Read more ]
Content: Article | Author: Joseph D. Piotroski | Source: Capital Ideas | Subjects: Accounting, Finance | Industry: Investing
Shareholder Rights and Corporate Performance
Corporate boards have long used such techniques as poison pills and anti-greenmail to stave off hostile outsiders. But shareholders’ organizations say such anti-takeover techniques are really meant to protect bad executives. Wharton finance professor Andrew Metrick and two colleagues examine which side has the better claim.
Content: Article | Source: Knowledge@Wharton | Subjects: Corporate Governance, Finance | Industry: Investing
Good Deeds Deliver
“Especially in environmental matters, the link between socially responsible practices and shareholder returns is becoming evident. That’s because a company’s ability to deal successfully with environmental issues can be a credible measure of management quality, which is notoriously tricky to gauge, contends Frank Dixon, managing director with Innovest Strategic Value Advisors, New York. Management teams that excel in handling environmental issues, which come with a … [ Read more ]
Content: Article | Author: Karen M. Kroll | Source: IndustryWeek | Subjects: Finance, Social Responsibility (ESG) | Industry: Investing
Will Stock Prices Keep Falling? Look Again at the P/E Ratio
Many analysts argue that despite the carnage on Wall Street over the past year, stock prices are still high by historical standards. Is that true? Could stocks fall some more before they reach bottom? Wharton finance professor Jeremy Siegel, author of Stocks for the Long Run, suggests that benchmarks such as the price-to-earnings ratio present a more hopeful picture than many market observers believe.
Content: Article | Author: Jeremy Siegel | Source: Knowledge@Wharton | Subjects: Finance, Market/Investment | Industry: Investing
Understanding Investor Sentiment: You Can Profit From Investor Mistakes
What happens when important news hits the financial markets? Suppose a company reports earnings much higher than expected or announces a big acquisition. Traders and investors rush to digest the information and push stock prices to a level they think is consistent with what they have heard. But do they get it right? Do they react properly to the news they receive? Recent evidence suggests … [ Read more ]
Content: Article | Authors: Nicholas Barberis, Robert W. Vishny | Source: Capital Ideas | Subject: Finance | Industry: Investing
Does the Internet Lead to Increased Trading by Your Average Investor?
Given the ease and availability of online trading over the past several years, just how has the behavior of average investors changed? Are these individuals trading online more, and more frequently, or does their natural conservatism distance them from the lure of trading on the web? Finance professor Andrew Metrick and two colleagues from Harvard University find some answers in a recent research paper … [ Read more ]
Content: Article | Source: Knowledge@Wharton | Subject: Finance | Industry: Investing
