The Efficiency of “Smart” Client Selection

Recently, The Wall Street Journal reported that J.P. Morgan Chase & Co.’s private banking group went through another layoff as it shifted its business strategy and increased its minimum investible assets from $5 million to $10 million. The rationale, as explained in the article, is that wealthy clients require much more attention, generate more fees, and have less risk than less lower income, middle class clients. The article continues:  Wealthy clients also typically generate a[…]

Market Falls: Who Invests?

According to Dalbar’s 2015 Quantitative Analysis of Investor Behavior (QAIB), the worst gap between market and investor performance in the past 30 years was in October 2008 when, as the report states, the S&P 500 index lost 16.8% but investors lost a little over 24%. There are, of course, many psychological factors that explain the disparity: behavioral finance biases that model why investors act irrationally. However, to be able to anticipate this behavior, and to[…]

Did you buy an $11 million Xbox last year?

A recent post by our friends at the Motley Fool refers to story told by America’s most famous investor, Warren Buffett, where he explains that if someone had invested just $40 in Coca-Cola stock when it went public in 1919, it would now be worth more than $5 million. The Fool Team updated the math and concluded that factoring in recent performance and events, the 2014 total value of that $40 investment would be nearly[…]

Think Like Wall Street: Focus on Top-Line and Bottom-Line Growth

The focus of Data Points’ research is typically on how one’s behaviors and experiences lead to wealth building potential. Effective wealth accumulators exhibit high levels of competencies shown to predict net worth, including the competency of frugality. Less money spent equals more money saved—thus a greater “profit” or “bottom-line” result at the end of each month, year, etc. But our research supports the conclusion that high-wealth-potential individuals also focus intently on investing the money that they[…]