Jack Bogle (1929–2019)

RIP

Bloomberg writes:

Bogle founded Valley Forge, Pennsylvania-based Vanguard in 1974. Investors attracted to its low fees helped the firm overtake American Funds, managed by Los Angeles-based Capital Group Inc., in 2008 as the biggest U.S. stock and bond fund manager. Vanguard has $4.9 trillion in assets under management.

via Vanguard, N.Y. Times, CNN, Wash. Post, NPR, Wall St. J., Reuters, Time, Bloomberg, Market Watch, Fin. Times, Fortune, Forbes, WSJ, WSJ, WSJ, WSJ, WSJ

The free dividend fallacy could be costing you

  • The free dividend fallacy could be costing you

We show that many individual investors, mutual funds and institutions trade as if dividends and capital gains are separate disconnected attributes, not fully appreciating that dividends come at the expense of price decreases. Behavioral trading patterns (e.g. the disposition eect) are driven by price changes excluding dividends. Investors treat dividends as a separate stable income stream, holding high dividend-yield stocks longer and displaying less sensitivity to their price changes. Demand for dividends is systematically higher in periods of low interest rates and poor market performance, leading to high valuations and lower future returns for dividend-paying stocks. Investors rarely reinvest dividends into the stocks from which they came, instead purchasing other stocks. This creates predictable marketwide price increases on days of large aggregate dividend payouts, concentrated in stocks not paying dividends.

Professor A. Douglas Melamed

Property Rules, Liability Rules and Inalienability: One View of the Cathedral, 85 Harv. L. Rev. 1089 (1972)を読んだ者が,その筆者に興味を抱く可能性は,どれぐらいあるでしょう。カラブレジ教授は,あまりに高名で,検索をすれば直ぐにそのご経歴や論文の一覧を入手することができます。では,その共著者であるA. Douglas Melamedという方は,どのような方なのでしょうか。私が初めてこの論文を読んだ時に,少し調べた印象では,どうやら弁護士をやっているようだということくらいでした。その後,2014年からStanford大学で教えているらしいということを今日知りました。何気なく見始めたビデオで,Melamed教授が出てきたので,天然記念物か絶滅危惧種を見たような気分になりました。