RR #93 - Cliff Asness from AQR: The Impact of Stories, Behaviour and Risk
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- เผยแพร่เมื่อ 22 พ.ค. 2024
- No one credible ever said that investing was a simple endeavour. It might have some simple guidelines, that if followed are more likely to yield positive results, but the ins and outs of the markets, decisions and their impacts, movements and crashes are never straightforward one-dimensional cases. Our guest today, Cliff Asness, really brings this point to bear, showing the nuance and multiplicity of all the topics we discuss. As the experienced owner of AQR and a wealth of knowledge and insight, Cliff shares a host of ideas and thoughts on as many topics as we have time for. We start off the chat talking about market efficiency before moving into the murky waters of value. We hold value investing to be sound, as does Cliff, yet the last few years have stretched even our commitment to this philosophy a little. The perspective that Cliff is able to share, drawing from his formative years in the investing world in the '90s is invaluable and a lot of what we talk about gets contrasted to the tech bubble of that period. The conversation also covers the size of stocks and portfolio allocation. Although Cliff has strong opinions on most of these issues he does a great job of showing the lack of definitive answers to any one of them, allowing space for new knowledge and outlying evidence to make its mark. We also get into finding the right kind of investor for your own style and goals, the role of good communication in finance and the influential article that Cliff wrote about 'pulling the goalie'. In it, Cliff lays out what the data tells us about certain late-stage situations in which it is statistically wise to make more risky choices. For all of this and a fabulously entertaining conversation, listen in with us today!
Key Points From This Episode:
03:48 - Cliff's perspective on market efficiency and the impact on his portfolios.
08:30 - Value investing in today's climate where value has taken such a knock.
13:36 - Stories and behavioural effects on value; how we understand ups and downs.
21:04 - Conversations Cliff has had with clients in the tougher times.
23:46 - Comparing the companies driving growth now with those in the '90s.
25:17 - The size effect and why Cliff does not subscribe to this philosophy.
33:07 - 60/40 portfolios; are they still alive? Why Cliff thinks you can do better!
36:31 - Cliff's experiences with institutions and advisors and contrasting the two.
38:28 - Informed decisions on who to invest with; thoughts on finding the right advisor.
40:42 - Pulling the goalie and why risky behaviour can work in certain circumstances.
47:29 - The value of communication skills in the game of financial advising.
50:07 - How Cliff defines success for his own life!
Links From Today’s Episode:
Rational Reminder on iTunes - itunes.apple.com/ca/podcast/t....
Rational Reminder Website - rationalreminder.ca/podcast/93
Cliff Asness - www.aqr.com/Insights/Perspect...
AQR - www.aqr.com/
Pulling the Goalie - papers.ssrn.com/sol3/papers.c...
The Rational Reminder is presented as an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific securities. The funds and portfolios discussed are examples only and may not be appropriate for your individual circumstances. - แนวปฏิบัติและการใช้ชีวิต
"...though I can be quite creative about things to be miserable about" was a perfect ending to a great interview.
Great interview. Cliff is hilarious. Very enjoyable and educational podcast. Thank you!
Cliff successfully predicted the future!
Phenomenal interview!
Hilarious guest
One of the best channels out there!
If you guys are hiting even a janitor let me know 😁🤣
Key Points From This Episode:
03:48 - Cliff's perspective on market efficiency and the impact on his portfolios.
08:30 - Value investing in today's climate where value has taken such a knock.
13:36 - Stories and behavioural effects on value; how we understand ups and downs.
21:04 - Conversations Cliff has had with clients in the tougher times.
23:46 - Comparing the companies driving growth now with those in the '90s.
25:17 - The size effect and why Cliff does not subscribe to this philosophy.
33:07 - 60/40 portfolios; are they still alive? Why Cliff thinks you can do better!
36:31 - Cliff's experiences with institutions and advisors and contrasting the two.
38:28 - Informed decisions on who to invest with; thoughts on finding the right advisor.
40:42 - Pulling the goalie and why risky behaviour can work in certain circumstances.
47:29 - The value of communication skills in the game of financial advising.
50:07 - How Cliff defines success for his own life!
Could you add these to description so it'll appear on youtube player?
good content for value investors.Most financial advisers are recommending Growth funds to their clients which scares me to invest more in value.
Great interview. Anything on the topic of investor behavior is always interesting to me.
I know im randomly asking but does someone know of a way to log back into an Instagram account??
I stupidly forgot the login password. I love any help you can give me!
24:03 - "How do I put this technically? I'm going to use stochastic calculus: The companies that were very expensive back then were crap companies."
Interesting speaker. He believes strongly in the value premium yet dismisses the size premium. The literature shows that the value premium is higher in small cap stocks than large cap stocks.
The size premium has disappear since it's discovery, but it seems to revive when you combine size with other factors. Larry Swedroe agrees with this perspective.
@@tiendoan1333 check out this article www.valuewalk.com/2015/08/sizing-up-the-size-premium/
I wouldn't call a premium to have "disappeared" after 5-10 years of underperformance. As Larry always points out, the market premium has had 2 periods where it underpeformed T bills over 10-13 years.
@@tiendoan1333
Their conclusion is
"Even with a modest small cap premium, we believe there is a benefit in holding small cap stocks as a distinct tilt in an equity strategy for the
diversification of returns that are different than those of
larger-cap stocks.
Additionally, given that other factor premiums (momentum, asset growth, value and profitability) tend to
be stronger among small capitalization stocks, we recommend taking multi-factor approach to investing in
small cap to obtain small cap exposure."