Smart Investing Tag

  Highland pays close attention to impact investing, which is the practice of buying into companies and funds that aim to make positive social and environmental change. This investment strategy of "doing good to do well" is a huge priority for millennial investors and has gained traction in recent years among...

Smart investors exercise discipline, which sounds practical and unsexy. They focus on strategies that really work over the long term rather than get caught up in short-term events. They also understand the work of behavioral economists on topics like overconfidence, recency bias (decisions based on recent events), home country bias, loss...

The bottom line up front: Nobody knows anything. The smartest people who work in the motion picture industry do not know for certain what’s going to be a hit or a flop. “Every time out it’s a guess and, if you’re lucky, an educated one,” wrote William Goldman in “Adventures in...

If you are focused on using a smart portfolio approach as we discussed in a previous post, you can create additional returns to your portfolio while using a cost-effective and efficient management strategy. Several studies, including one by Vanguard, have concluded investors can add anywhere from 2-4 percent in excess returns per year by following some straightforward steps that have nothing to do with beating an index.

The world of investing is driven by two, seemingly competing, philosophies: - Indexers believe the financial markets are efficient and that effective investing means a responsible but passive approach. Stick your money in index funds and let them do the work. We tend to see many business leaders in high-growth companies fall into this camp. - Active Managers believe the markets are not always efficient, and that taking an active, diligent approach will result in higher gains because you can take advantage of market inefficiencies.

In our last post about impact investing, defined as institutional investing aimed at social and environmental good, we predicted the practice would continue to grow in the coming years, propelled in part by the increasing number of millennials who are becoming investors. As a generation, millennials tend to align their values with their investment decisions, a principle we encourage and discussed in our post about younger investors a few months ago. As of 2012, about $3.74 trillion of total assets under management were impact investments, according to a study we referred to our September post.