Keep pulling the thread on Carl Richards.
Carl Richards recalls that after the 1998 collapse of Long-Term Capital Management, one of its Nobel laureate founders reportedly claimed their models were not wrong, but rather that "reality just refused to conform to it."
Carl Richards' "Sketch Guy" column ran in the New York Times for a decade.
The origin of Carl Richards' signature sketches was an attempt to explain a financial concept on a whiteboard to clients, one of whom was a technology sales representative for EMC.
Carl Richards' "Sketch Guy" column in the New York Times originated when his work was sent to journalist Ron Lieber by an intermediary.
Carl Richards founded his own investment firm around 2008 or 2009 and sold it in 2012.
A primary motivation for Carl Richards to start his own RIA was to gain access to investment products from Dimensional Fund Advisors (DFA).
Carl Richards states that one of the greatest disappointments of his career was discovering that most clients did not seem to care about or understand the concept of a fiduciary when he started his own firm.
Carl Richards sold his investment firm in 2012 to focus on his speaking and writing career, which was growing in demand following the release of his book.
Industry research indicates that the average investor underperforms the average investment they hold, a phenomenon known as the "behavior gap."
Carl Richards cites Morningstar research which quantifies the investor "behavior gap" at approximately 80 to 100 basis points per year.
Barry Ritholtz references the SPIVA (S&P Indices Versus Active) reports, which show that a large percentage of active fund managers underperform their benchmarks, and this underperformance increases over longer time horizons.
Carl Richards recounts an experience where his firm fired the Davis New York Venture fund for underperformance, only to have it reappear on their "buy" list a few years later after the replacement manager also underperformed.