We’re not the only ones encouraging investors around the globe to Take the Long View® with their investment strategy. AQR Capital Management’s like-minded perspective is one of the reasons we’ve been known to turn to some of their fund solutions, when appropriate for a client’s goals.

We also appreciate how their podcast series, hosted by Gabe Feghali and Dan Villalon, takes otherwise complex academic insights and translates them into what you need to know to build those insights into your own investing.

We’re particularly fond of their September podcast, “Taking Stock of Stock Myths.”

In this podcast, AQR’s team takes on three types of equity risks – home bias, market-timing and inflation – and busts some of the stock market myths that cause investors to succumb to them.

First, what is “risk” to begin with? We like their working definition, which describes risk as “how likely it is that you end up with a bad outcome over whatever investment horizon you care about.”

See what I mean about keeping it simple but substantive? Here are links to listen to the rest:

• “Taking Stock of Stock Myths” (web browser)
• “Taking Stock of Stock Myths” (iTunes)

When this Wall Street Journal video of Warren Buffett’s reflection on the 2008 Financial Crisis debuted in early September 2018, a decade had passed since the beginning of the last big market crisis.

In light of current market volatility, it’s worth revisiting Buffett’s perspective today. Comparing the American economy to “an economic train moving down the track that has no ending,” he cautions against reacting to the occasional “derailments.”

“People talk about a fog of war,” says Buffett, “but there’s a fog of panic too, and during that panic, you’re getting inaccurate information, you’re hearing rumors. If you wait until you know everything, it’s too late.”

Words of wisdom that made sense in 2008. They still make sense today.

For years, we’ve been sharing the results of Dimensional Fund Advisors’ annually updated “Mutual Fund Landscape” analysis.  As we first expressed back in 2013, “This analysis of the US mutual fund industry performance casts doubt on the ability of investors to form a winning long-term strategy by picking outperforming funds based on past returns. It also raises questions about the effectiveness of investment strategies that attempt to add value by identifying mispriced securities.”

This is one message that bears repeating. Especially since, this year, somebody got creative over at Dimensional and produced an engaging video version. Check it out!