This week, we speak with Roger G. Ibbotson, Professor Emeritus of Finance at Yale School of Management. He is also Chairman and CIO of Zebra Capital Management, an equity investment and hedge fund manager. He founded Ibbotson Associates, which was sold to Morningstar in 2005. He sits on the Board of Directors of Dimensional Fund Advisors.
He is the author of numerous books and publications, including the annual Stocks, Bonds, Bills, and Inflation, as well as Investment Markets: Gaining the Performance Advantage and Global Investing: The Professional’s Guide to the World Capital Markets.
Ibbotson has been instrumental in turning investing into a more empirical He served as executive director of the Center for Research in Security Prices (CRSP). He also ran the University of Chicago’s endowment bond portfolio, while he was a Ph.D. student at U of C.
His most recent research paper is Popularity: A Bridge between Classical and Behavioral Finance. He described how things that become popular are less appealing to him as an investor while unpopular assets are more attractive. Popularity could be a function of brand,. valuation, liquidity, etc.
You can stream/download the full conversation, including the podcast extras on iTunes, Bloomberg, Overcast, and Stitcher. Our earlier podcasts can all be found at iTunes, Stitcher, Overcast, and Bloomberg.
Funny side note: we were originally booked for my usual Bloomberg studio, but somewhere along the line, we forgot that daylight savings occur in America but not in Great Britain — the show that usually runs from 12-1pm is now running at 1pm! Rather than send the professor back to New Haven, Charlie Pellett graciously offered up his workstation in the 4th floor recording room. Professor Ibbotson was a great sport, as he and I sat knee-to-knee at Charlie’s desk, recording the show under rather intimate circumstances.
Roger Ibbotson’s Favorite Books
Big History: Between Nothing and Everything by David Christian, Cynthia Brown, and Craig Benjamin
The Better Angels of Our Nature: Why Violence Has Declined by Steven Pinker
The Climate Casino: Risk, Uncertainty, and Economics for a Warming World by William Nordhaus
Progress: Ten Reasons to Look Forward to the Future by Johan Norberg
Maps of Time: An Introduction to Big History by David Christian
Sapiens: A Brief History of Humankind by Yuval Noah Harari
Roger Ibbotson’s Authored Books
2017 SBBI Yearbook: Stocks, Bonds, Bills, and Inflation by Roger Ibbotson
Investment Markets: Gaining the Performance Advantage by Roger Ibbotson and Gary Brinson
Global Investing: The Professional’s Guide to the World Capital Markets by Roger Ibbotson and Gary Brinson