I’ve posted Entry #245 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Rob Arnott Points Us to a Mathematics That Is Simple to Understand But Hard to Accept.
Juicy Excerpt: Rob Arnott said something amazing a number of years back. He said: “Returns are for the most part a matter of simple arithmetic. Much of our industry seems fearful of basic arithmetic of this sort.”
Why would that be? We all want to invest effectively. If we could all invest more effectively just by performing some simple math, why wouldn’t we perform it?