One of the most common requests I get for my blog and other projects is to write something about smart beta or factor investing in general. Together with ESG investing, it is arguably the hottest topic in the investment world right now. But that also means that everybody is talking about it and a lot of very smart people are researching the topic and publish their results in blogs, articles and white papers.
In my view some of the best resources for people interested in factor investing are:
Alpha Architect: https://alphaarchitect.com/research-category-list/ and @alphaarchitect
Their research is really good, and I have to ask myself, whether I can contribute anything of value beyond what they do already?
My answer: I think not.
In order to keep my blog interesting, I try to provide insights that I find valuable for my own investments and that may be valuable for my readers. This means that I don’t want to repeat what others have written already. Instead, I am constantly trying to come up with insights that are different and differentiating.
Thus, I want to stick to where I think I can add value and in my experience that is in interpreting economic and geopolitical developments and their impact on financial markets. I have done that more or less successfully for two decades now and think I can separate the bs from the truly valuable information. And this is what I try to do in my blog.
As for my weaknesses, there are many, and where I think I cannot add value, I simply rely on academic research and the insights from people like the ones mentioned above.
Remember: The truly successful investor knows both his strengths and his weaknesses. Focus on your strengths and learn from the best to eliminate your weaknesses and you will be successful.