Big Banks Will Win the Fintech Revolution

Large incumbent financial firms will continue to control the bulk of the value in the industry, but the structure of the value chain and the way these firms compete will change drastically.

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Taking GAAP Earnings at Face Value Puts Investors at Risk

The more investors understand about how GAAP net income omits valuable information, the better equipped they are to find truly hidden gems, or those companies with growing economic earnings and undervalued stock prices.

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WealthManagement.com Names New Constructs As 2017 Industry Awards Finalist

New Constructs is a finalist for WealthManagement.com’s 2017 Industry Awards in the “Technology Providers; Compliance” category.

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Fiduciary Rule Delayed, But Its Impact Remains

Despite over 92% of the 193,000 comment letters opposing delay, the Department of Labor’s Fiduciary Rule has been officially delayed until June 9. No matter the legalities, investor awareness is higher.

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Fiduciary Duty Can’t Be Killed

Striking the fiduciary rule down could make it, in the words of Obi-Wan Kenobi, “more powerful than you can possibly imagine.”

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The Truth Behind The Push To Delay The Fiduciary Rule

The Department of Labor’s fiduciary rule is under fire again. Essentially, those opposing the rule are saying that fulfilling a fiduciary standard—acting in the best interests of their clients—is too costly to work with their business model.

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Danger Zone: Advisers Who Don’t Fulfill Fiduciary Duties

Clients are more educated than ever. There is more transparency into advisory practices than ever. It’s going to be awfully hard for advisors to win new business if they cannot tell clients they will act in the clients’ best interests.

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There’s No Getting Out Of Fiduciary Duties

We think investors’ expectation for the fiduciary standard is here to stay no matter what the official rules say — and those investors will increasingly demand that their advisers apply to their non-retirement accounts too.

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All Cap Value Style 4Q16: Best and Worst

The All Cap Value style ranks fifth out of the twelve fund styles as detailed in our 4Q16 Style Ratings for ETFs and Mutual Funds report. Last quarter, the All Cap Value style ranked fifth as well.

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3Q16 Style Ratings for ETFs & Mutual Funds

At the beginning of the third quarter of 2016, only the Large Cap Blend style earns an Attractive-or-better rating. Our style ratings are based on the aggregation of our fund ratings for every ETF and mutual fund in each style.

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The Future of Wealth Management And Morgan Stanley’s $28 Billion Opportunity

The big banks still have significant advantages. Their brand names, financial capital, advisor networks, and large client bases give them the opportunity to leverage the innovations of startups and become the biggest winners in this new wealth management model.

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Invested Capital: Explanation & Examples

We calculate invested capital in two mathematically equivalent ways: financing and operating approach. Figure 1 shows the basic calculations. On page 2, we share the complete calculations for specific companies.

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How To Boost American Express (AXP) Value By $50 Billion

Thesis: Management can boost the market value of American Express in the amounts below[1] by aligning the firm’s strategy and performance compensation with real cash flows or what we call return on invested capital (ROIC).

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ROIC: The Paradigm For Linking Corporate Performance To Valuation

It’s incredible that corporate executives and the market as a whole continue to depend on such flawed numbers when we already have a measure that is clearly linked with value creation: return on invested capital (ROIC).

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Long Idea: Wells Fargo & Company (WFC)

In the search for safe investments in today’s volatile markets, investors should focus on companies that have a history of creating shareholder value, the ability to earn quality returns on capital, and an undervalued stock. This week’s Long Idea, Wells Fargo & Company (WFC) not only fits the description of a safe investment, but its shares are also greatly undervalued.

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Riskiest Stocks in the Dow Jones Industrial Average

The Dow Jones Industrial Average has a deserved reputation of only housing the best-of-the-best blue chip stocks. Only the oldest, largest, and most profitable companies are included in the index, and these companies are, generally, some of the surest investments you can make. However, assuming that simply because a ticker is in the Dow that…

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Why the Fed’s Stress Test Isn’t a Stamp of Approval for Investors

stress test

In this podcast, CEO David Trainer will explain why many of the big banks will not be as good investments now as they have been in the past.

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David Trainer Explains Why Big Banks Are No Longer an Attractive Investment

good inve

David Trainer discusses why big banks are no longer an attractive investment.

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How are These 19th Century Companies Doing Today?

Trading stocks sometimes feels like a very modern phenomenon, so it’s easy to forget that some of the companies we’re investing in go back a century or more.

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Danger Zone: Value Investors

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