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April 2016
 
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The Company You Keep, The Advice You Accept    

"There are few regulations that smart, motivated targets cannot evade."
                     - Vanguard founder Jack Bogle
 
Bogle may have said it more succinctly, but " The Market for Financial Adviser Misconduct ," a new working paper by three scholars from the University of Chicago and the University of Minnesota, says it with an abundance of eye-opening, data-driven evidence ... and with an intriguing twist, which we'll cover in a moment.
 

First, the main point: Financial adviser misconduct remains alive and well ... and as difficult as ever to regulate away. That means that it's as important as ever to choose wisely and carefully whose financial advice you heed.
 
An Analysis of Adviser Misconduct
Beyond the headline-grabbing Bernie Madoffs in our industry, how much and what sort of misconduct is out there? Who is being most heavily impacted by it? What are we doing (or not doing) to eliminate it? The paper's co-authors sought to answer these vital questions, describing their work as "the first large-scale study that documents the economy-wide extent of misconduct among financial advisers and financial advisory firms." Read More HERE. 
 
 
    
  
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Warren Buffett Strikes Again With His "Buffettisms"

 

Every year for the past 51 years, Warren Buffett has shared his wit and wisdom in an annual letter to Berkshire Hathaway shareholders. Truth be told, last year's letter was exemplary. You may want to revisit our blog post from a year ago, "  Michael's Favorite Buffettisms from 2014 Shareholders Letter ," in which we shared some of the highlights.

As usual, though, this year's letter is again filled with the warmth, wit and wisdom that is Warren Buffett. Here are some of our latest favorite Buffettisms. Our favorite is on Risk & Rewards: "Though the early bird gets the worm, the second mouse gets the cheese." Enjoy!
   

Hedge Fund Realities: An Assessment from Larry Swedroe


       
Here we share a recent post by The BAM ALLIANCE's Director of Research Larry Swedroe: "Hedge Funds Miss the Mark." In the absence of all-knowing powers, how have hedge fund managers actually performed compared to the S&P 500, or even more telling, compared to globally diversified strategies? Read more HERE.
 
   

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2016 ©Cogent Advisor LLC. The information and opinions contained in this newsletter are for informational purposes only and they are not intended to serve as specific financial, legal, accounting or tax advice. Because every situation is unique and fact-specific, you should consult a professional who can thoroughly review and analyze all aspects of your particular situation before making any decision or taking action.