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 ]

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 ]

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 ]

Mapping Out Your Options

Treat these employee perks as a real part of your portfolio, not as a lottery ticket.

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).

Should You Follow the Insiders?

Mimicking their trades in company stock is no sure road to riches.

Bet With the Pros

Institutions spend $50 billion a year selecting stocks. Here’s how to tap their knowledge for free.

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.

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.

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 ]

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.

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 ]

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.

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 ]

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.

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 ]

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 ]