Professor of Finance at Boston College Carroll School of Management. https://nitter.cf/t.co/Dm47kXTrf3
Boston, MA
Joined June 2017
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Samuel Hartzmark retweeted
Sustainable investing that shifts capital from “brown” to “green” firms can backfire, making brown firms more brown without making green firms more green, from @samhartzmark and Kelly Shue nber.org/papers/w35519
Samuel Hartzmark retweeted
We did a survey on how dividends work and received thousands of responses...
Q: "Which of the following best describes how dividends work for a stock investor?"
A1: "A stock yields 5%. The stock is trading at $100 and pays a $5 cash dividend. After distribution, the investor now has a stock worth $95 and a $5 cash dividend."
A2: "A stock yields 5%. The stock is trading at $100 and pays a $5 cash dividend. After distribution, the investor now has a stock worth $100 and a $5 cash dividend."
The good news? Meb's audience (mostly) gets its.
90% of pros understand how dividends work, and 80% of individuals. 👏
HOWEVER, for the broad-based audience, the results are DISMAL.
60% of pros understand how dividends work (despite 90% rating their knowledge at "average to very good")...
Only 25% of individuals understand how dividends work.
You read that right, 75% of individuals think that dividends are free money paid out like an allowance or bonus...
This agrees with my experience over the last 20 years.
Most individuals, and a non-trivial number of professionals, do not understand the most basic input in all of investing!
This explains everything from the irrational preference for dividends to predatory offerings focused on paying out magically high dividends to hope and dreams of passive income.
We will publish a longer paper on this soon, but in the meantime, stay tuned for a great podcast on the topic dropping shortly!
Samuel Hartzmark retweeted
This is a *phenomenal* piece from @denitsa_tsekova and @VildanaHajric on the bonkers rise of @YieldMaxETFs and the cult that's grown around some pretty wild ... interpretations ... of how investing math works. Must reading for ETF nerds.
"I’ve always had what they call the ‘shiny object syndrome,’” - unemployed GenX-er and former meme coin trader, who turned $5k into $160k using high yielding ETFs. Good, balanced, look into the exploding market for 'income on steroids' ETFs from @denitsa_tsekova @VildanaHajric
Samuel Hartzmark retweeted
Professor @SamHartzmark has the most interesting research out there when it comes to investor behavior. Strongly recommended you check out his research website: sites.google.com/site/samhar…
Samuel Hartzmark retweeted
Avoid the Black Hat firms at all costs .
Fun podcast....wonder what % of investments are made based upon misunderstanding this one chart?
Over half?
podcasts.apple.com/us/podcas…
Samuel Hartzmark retweeted
According to the paper "The Dividend Month Premium," by @SamHartzmark, investors are chasing yield and inflating prices in the process.
In a surprising turn of events, it turns out that dividend investors are the yield!
Dividends are the comfort food of investing. Who wouldn’t love feeling like they’re getting a seemingly “free” payout just for holding onto a stock?
by @JOrdonezJr
youtube.com/watch?v=DuYQfktw…
alphaarchitect.com/?p=94467
Samuel Hartzmark retweeted
NEWSLETTER: The stock market has done even better than you think.
link.cnbc.com/public/3527439…
Samuel Hartzmark retweeted
Explore the intersection of asset pricing and behavioral finance with CSOM finance professor @Samhartzmark in this recent episode of the @RationalRemind podcast.
loom.ly/wODQbNM
Samuel Hartzmark retweeted
Episode 273: Professor @SamHartzmark: Asset Pricing, Behavioural Finance, and Sustainability Ranking
rationalreminder.ca/podcast/…
Samuel Hartzmark retweeted
Counterproductive #SustainableInvesting: What is the impact of directing capital toward green firms & away from brown firms?
Find Out More: spkl.io/60194dzG5
Subscribe for Free: spkl.io/60104dzGg
@SPGlobal @SamHartzmark @ChicagoBooth @YaleSOM #ESG #Sustainability
Samuel Hartzmark retweeted
SRI is ineffective because it focuses on %, not absolute changes in emissions. Allure of Net Zero means we'd rather reduce a green firm's emissions from 1 to 0 (a 100% fall) than a brown firm's from 100 to 90 (a 10% fall). By @SamHartzmark and Kelly Shue. papers.ssrn.com/sol3/papers.…
Samuel Hartzmark retweeted
This one by @SamHartzmark and @david_h_solomon blows up a lot of standard fundamental assumptions about financial markets too.
Money flows affect stock prices independently of news.
nber.org/papers/w30688
Samuel Hartzmark retweeted
Does trading move the entire stock market? Yes—returns are four times higher on high dividend payment days (known weeks prior). This suggests price pressure is widespread, not an anomaly, from @SamHartzmark and @david_h_solomon nber.org/papers/w30688
Samuel Hartzmark retweeted
April 27-29, 2023: @UKGattonCollege Finance Conf! Our fab prg comm includes @startupecon @prof_cookson @ProfSongMa @PagelMichaela @Ed_Van_Wesep @Zhi_Da @SamHartzmark @jickerson @Ringgenberg_M @YufengWu14 @NGantchev @lukestein Submission deadline: Nov 18 uky.edu/financeconference/
Samuel Hartzmark retweeted
Behavioral finance conference in Amsterdam. Experimental setup can help us better understanding asset prices in keynote by @SamHartzmark
Samuel Hartzmark retweeted
Sam Hartzmark is giving the first keynote speech at #RBFC2022 on Asking to Test Asset Pricing Models
Samuel Hartzmark retweeted
We are ready to kick-off #RBFC2022 tomorrow with keynote speeches by @SamHartzmark @PagelMichaela and Stephan Siegel. Together with over 100 other presentations, the program looks great. RBFC.eu Looking forward to meeting everyone in Amsterdam!
Samuel Hartzmark retweeted
Thanks to @SamHartzmark for kicking off this year’s Experimental Finance Conference with a great keynote! Happy to meet so many friends and colleagues again after a long time! Thanks to @ECON_tribute for making this possible!
