Run Rich Run

Pros Versus Casuals

One of my favorite events at the NFL Combine is when NFL Network’s Rich Eisen runs the 40 yard dash.  He uses the Run Rich Run event to raise money for St. Jude’s.  It also helps give perspective to just how talented the athletes at the combine are.  Viewed on the field of play, athletes usually don’t look all that different from one another so when someone sees that Denzel Ward is 5’11” and 180 pounds, they may be tempted to think, “I could compete with that guy!”  No, you could not.  Eisen runs a 6-second 40.  Ward is at 4.3 seconds.  Rich provides the average fan a service that should be available in every sport.  I want to see an average guy swim against Michael Phelps or a group of randoms take on an Olympic curling team. Seeing the difference between a professional and an amateur on screen is helpful. …

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No Picture

How Yale Beat the Market

The Yale Endowment released their 2017 report, taking a victory lap over their 20-year returns.  In their hubris, the endowment’s management team let slip the secret to beating the markets.  “[A]ctive management can be a powerful tool for institutions that commit the resources to achieve superior, risk-adjusted investment results.”  If only Harvard had thought to commit the resources to achieve superior, risk-adjusted investment results! What’s happening here is two of the planet’s greatest active managers disagree about passive investing.  Warren Buffett says most individual and institutional investors would be better off indexing.  Yale’s David Swenson argues that institutional investors with the resources to do so should just pick good funds. Check out this gem of a footnote in the report: “Yale’s 106.3% venture capital return over the past twenty years is heavily influenced by large distributions during the Internet boom. Since such a calculation assumes reinvestment of proceeds from the…

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My “Bad” Personal Finance

“Dad, can we go speed?” I always wondered if my kids would be like me.  So when William asked that question on the way to swimming lessons, I knew I could check that box.  Yep, this kid inherited the car gene.  My dad is a car guy.  By today’s standards (I enjoy driving stick), I am a car guy.  And now it seems the next generation has the bug.  What’s this got to do with personal finance?  Cars are one of the biggest targets for personal finance bloggers.  If you’re trying to live the FIRE (financially independent, retire early) lifestyle and do the whole retire in your 30s/40s thing, a car can be a huge burden on this journey. Car FIRE The FIRE crowd isn’t necessarily against cars so much as car payments.  Their arguments are air-tight and their logic is flawless.  Yes, it makes sense to buy a used…

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Garrott Boys

I’m Back, Baby!

It’s been a while since I’ve posted, but that’s because I’ve been busy with a new baby!  Baby and Mom are happy and healthy.  This is a pretty big difference from our first child who spent a ton of time in the hospital during his first two years. There’s a pretty big gap between our two kids (almost 8 years!) so a lot of people are asking us if we are ready to go through all the newborn stuff again.  Are we ready?  We’ve been playing the child-raising game on hard mode for the past 8 years.  We are reveling in changing diapers, feeding, and just holding the newest member of our family. Our child-raising experience is anchored in years of NICU units, dialysis treatments, and navigating various hardware that came with having a baby with ARPKD.  While it’s not exactly a vacation to wake up at 2 in the…

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alright

Has the Dow Left You Dazed and Confused?

Let’s set aside the fact that the Dow Jones Industrial Average is a flawed measure of the overall stock market.  The media, your parents, and their parents have all accepted the Dow as the standard.  Besides, over time the Dow does move in line with the overall market.  So instead of arguing semantics, let’s talk about the headline: a 4-digit drop in the Dow today along with a 600+ point drop on Friday. While the average person associates the Dow with the overall market, we should also recognize that the media loves the Dow because of the potential for attention grabbing headlines.  To paraphrase Wooderson in Dazed and Confused: That’s what I like about the Dow, the points get bigger, but the size of the returns stays the same. On average, the S&P 500 experiences a drawdown of 14% every year.  If we apply that average to the Dow, it would…

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