It happens very often that we work because we don’t see any alternatives. Our job may be annoying as hell, we may even hate it, but the reality seems like we don’t have any other options. We have a mortgage, we have a family to maintain, or our qualifications aren’t allowing us to do something new. So we don’t dare to do something new, and we don’t have a plan, we’re just drifting — day by day.

My guest, Paul Novell, talks in this episode how he decided to live the life he wants to live. He left the semiconductor industry, a well-paid job at around 40, to pursue a more independent life. Already since 2006, his primary source of income is from investments.

I discuss with Paul many investment topics. It’s interesting to learn how Paul was maturing over the years, how he switched slowly from discretionary dividend investing towards quantitative and tactical asset allocation investment systems.
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Investing is simple, but not easy, as Warren Buffett says. And yes — technically the investment process should be as simple as possible. But does it mean that an average investor should not even think about active investment strategies and entirely rely on a passive portfolio? Which strategy is best to follow? And will it work tomorrow?

In this interview, my guest, Jack Vogel from Alpha Architect, talks about many trading topics, including momentum and mean reversion market anomalies.

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Imagine that you spend a few minutes a month to manage your investment. All is rule-based, statistically significant, simple and logical. No place for discretionary decisions, no guessing, no gut feeling, no forecasting. And in the long-term, you are almost sure to beat all the actively managed investment funds on the market. Sounds like a scam? Well, everyone should verify everything, but once you do it in this case, you will find out that the name of the presented strategy in this episode, Global Equity Momentum, GEM, is truly a gem.

I am so much impressed by the research work done by Gary Antonacci, guest of this podcast episode. To me, it’s just amazing that he contributed more to the financial industry than so many university researchers out there. He’s a practitioner, rather than a man trying to create another great looking theory, which may seem elegant and appealing but is useless. Fisher Black said once that โ€œThe theory is right. It just doesnโ€™t work.โ€ Gary proposed a straightforward yet very effective model based on anomaly which proved to be working for hundreds of years — momentum.

Gary has over 40 yearsโ€™ experience as an investment professional. After receiving his MBA degree from the Harvard Business School he concentrated on researching and developing innovative investment strategies that have their basis in academic research.

Gary’s innovative research on momentum investing was the first-place winner in 2012 and the second-place winner in 2011 of the prestigious Wagner Awards for Advances in Active Investment Management given annually by the National Association of Active Investment Managers.
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