When Odds On was born, we quickly realized that one of the powerful benefits of having a book in hand is it gets our foot in the door at public and professional venues alike. By having opportunities to “teach the teachers” about evidence-based investing, we could spread the word faster through the power of exponential word of mouth.

That’s one reason it was fun and fulfilling to present “The Evolution of Evidence-Based Investing” to a group of attorneys at the century-old, St. Louis law firm Lewis Rice earlier this month. (The awesome view of downtown St. Louis, Arch and all, didn’t hurt any either!)

Looking back to the 1950s, it’s eye-opening to realize how far investing has come since then. That was back before computer-generated data was available to help us understand the powerful efficiencies available in our capital markets. It meant that trying to pick this or that stock was not only the typical way to invest … it was mostly the only way possible. Low-cost index funds weren’t even available until the 1970s, but what a ride, as today we’re nearing 40% of the market resembling our approach.

Are you looking for a speaker for one of your organization’s events? Let us know if we can tell you more about the evolution of investing. Not to worry: Having an awesome view is optional.

PS: Are you wondering about that weird square drawing in the photo above? Check out our “Illustration of the Month”  post. 

Given how fleeting a financial super-star’s fame tends to be, there’s something comforting about Warren Buffett’s staying power as the “Oracle of Omaha.” (Omaha is Buffett’s hometown and headquarters for his global holding company Berkshire Hathaway.) The straightforward wisdom he’s been sharing for more than 50 years in his annual shareholder letters helps explain the perennial appeal.

I’ve long admired his position on how to invest sensibly over the long haul. After all, he’s the guy who first said (in 1988), “our favorite holding period is forever.” But his insights on human character are always among my favorites, such as these new gems from his recently released 2016 letter.

• “1,000 monkeys would be just as likely to produce a seemingly all-wise prophet. But there would remain a difference: The lucky monkey would not find people standing in line to invest with him.”
• “Ever-present naysayers may prosper by marketing their gloomy forecasts. But heaven help them if they act on the nonsense they peddle.”
• “As Charlie [Munger] says, it’s great to have a manager with a 160 IQ – unless he thinks it’s 180.”
• “[B]ad behavior is contagious: CEOs who overtly look for ways to report high numbers tend to foster a culture in which subordinates strive to be ‘helpful’ as well.”
• “This year the magic potion may be hedge funds, next year something else. The likely result from this parade of promises is predicted in an adage: ‘When a person with money meets a person with experience, the one with experience ends up with the money and the one with money leaves with experience.'”

PS: If you haven’t caught the HBO Special, “Becoming Warren Buffett,” I recommend that too. You have to love an 86-year-old billionaire who still drives by the McDonald’s take-out window on his way to work each morning to “splurge” on an Egg McMuffin®. (Here’s the promo for it​. To watch it in full, you’ll need to be an HBO subscriber.)

Is there such a thing as too much knowledge? There can be! It’s called “the curse of knowledge” when we forget that nobody will have a clue what we’re talking about if we leap right into the deep end of investment theory.

That’s why our first responsibility is to recreate those same, “ah-ha!” moments that we’ve already enjoyed. Today’s video with journalist Robin Powell does just that, for those of you who are wondering what this “evidence-based investing stuff” is all about, as well as for anyone who could use a handy, two-minute reminder. Enjoy!

Robin Powell and Matt Hall on Evidence-Based Investing from Hill Investment Group on Vimeo.