General

ITIN Mortage Investing

Background Currently there are close to twenty million undocumented immigrants in the U.S., according to the U.S. Government Immigration Service.  The average time that it takes an undocumented worker to become a U.S. citizen is seven years.  During this process the undocumented workers must rent a home, rent an apartment or stay with a family…

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Key Questions for Long-Term Investors

Asking the right questions and following a few key principles can improve your odds of long-term investment success. Whether you’ve been investing for decades or are just getting started, at some point on your investment journey you’ll likely ask yourself some of the questions below. Trying to answer these questions may be intimidating, but know…

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Trade Journals & Successful Option Trading

I’ve now been trading options for over a decade and been associated with Steady Options for seven years – hard to believe. Over that period, I’ve learned quite a bit about option trading; how to improve, what not to do, and generally how the option markets work. I’m still learning. Seeing how large blocks of options…

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401(k) Fiduciaries

One of the least understood areas about 401(k) plans relates to the various fiduciary requirements for the plan.  Every 401(k) plan has fiduciaries, as required by ERISA (the law governing retirement plans).   There are different types of fiduciaries involved with 401(k) plans…which leads to common questions:             What exactly are fiduciaries, and what do they…

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Lorintine Capital’s Investment Philosophy

Investopedia defines an investment philosophy as “a set of beliefs and principles that guide an investor’s decision-making process.” In this article I’ll share a few principles that guide our investment philosophy at Lorintine Capital. Before I jump in, some definitions: “Cash”: 1 Month US Treasury Bills “Bonds”: Bloomberg Barclays US Aggregate Bond Index “Market”: Dimensional…

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The Power of Diversification

For many US investors, the “base case” for equity investing is US large cap stocks, most commonly benchmarked as the S&P 500. You could absolutely do far worse than owning these 500 great US companies, and the weight of the evidence suggests that most actively managed mutual funds that benchmark themselves against the S&P 500…

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What’s Wrong With Your 401(k)? (If anything)

There currently are over sixty million Americans that are active 401(k) participants, and well over 500,000 total active 401(k) plans offered by employers in the United States.  Despite these high numbers, usages could be higher, as the US Census Bureau estimates that only 41% of all employees with access to a 401(k) plan utilize it,…

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Systematic vs. Discretionary Investing

Much of the discussion in finance is about “active” vs. “passive”. Active management typically uses security selection and/or market timing to make portfolio management decisions. Passive management typically does not, instead, focusing on market risk premiums as the source of expected return. So which is better? I personally think it’s the wrong question to ask,…

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Quantitative Analysis: It’s (Not) All About The Numbers

I’m a big fan of the work of Cliff Asness and AQR (Applied Quantitative Research).  Cliff was recently on Bloomberg Radio with Barry Ritholtz. You can listen here to his Feb 21st interview. About twelve minutes in Barry asked Cliff what it means to be a quantitative investor in which Cliff replied that “quantitative investment managers are…

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Thinking in terms of decades

Peak to valley, from June 1998 – March 2000 Warren Buffett’s Berkshire Hathaway lost over 50%. In the same period, the S&P 500 returned over 45% and the Nasdaq 100 returned over 315%. A new client said to me the other day “I’m in this for the long term, but if after a couple years…

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