FREE NEWSLETTER
No Green Light

Phil Kernen

Phil Kernen, CFA, is a portfolio manager and partner with Mitchell Capital, a financial planning and investment management firm in Leawood, Kansas. When he's not working, Phil enjoys spending time with his family and friends, reading, hiking and riding his bike.

No Green Light

Phil Kernen  |  Sep 7, 2021

MORE AND MORE investors are using environmental, social and governance (ESG) criteria to direct their investment dollars toward companies fighting climate change. An obvious question: Do companies that deliver “green” innovations earn high ESG scores?
It seems not. The authors of a recent study from the European Corporate Governance Institute found that:

Companies with lower ESG scores are producing more and higher-quality innovations designed to mitigate climate change.
A sizable percentage of recent U.S.

Read More

Going Direct

Phil Kernen  |  Aug 23, 2021

HEARD OF DIRECT indexing? It’s supposed to be the next big thing in investing. Let me tell you why that isn’t likely.
Direct indexing arose from a shortcoming in the way exchange-traded funds (ETFs) work. Most ETFs mimic a market benchmark such as the S&P 500 or the Russell 2000, and are bought and sold on an exchange like stocks. Their main selling point is that there are no active portfolio managers selecting the securities,

Read More

Three Other Legs

Phil Kernen  |  May 7, 2021

THE THREE-LEGGED stool is a metaphor for how the post-Second World War generation looked at retirement. The legs represented Social Security, an employer pension and personal savings. All three legs were viewed as necessary for a solid retirement plan.
Today, that notion seems quaint. Pension plans continue to be phased out. The number of employees covered by a defined benefit pension has been declining for decades, falling to 26% as of 2019, according to the Bureau of Labor Statistics.

Read More

Virtue’s Vice

Phil Kernen  |  Apr 22, 2021

IT’S BEEN A GREAT stretch for many mutual funds and exchange-traded funds that buy stocks based on environmental, social and governance (ESG) criteria. For instance, the actively managed Parnassus Core Equity Fund notched 19.3% a year over the three years through March 31, Fidelity U.S. Sustainability Index Fund has climbed 17.4% and iShares ESG Aware MSCI USA ETF 18.2%. All three funds look like winners compared to the S&P 500’s 16.8% annual total return.

Read More

Staying Safe

Phil Kernen  |  Mar 30, 2021

FOLKS FORGET passwords every day, an inconvenience that can usually be quickly fixed—but not always.
In January, The New York Times wrote about a German programmer living in San Francisco. A decade ago, he had been paid 7,002 bitcoins for making a video explaining how cryptocurrencies work. He stored them in a digital wallet on a hard drive and wrote the password on a piece of paper, which he has since lost.

Read More

We’re All Active

Phil Kernen  |  Mar 16, 2021

OVER THE PAST TWO decades, investors have increasingly shunned actively managed mutual funds, instead embracing index mutual funds and exchange-traded index funds. This has led to a contrived debate over whether active or passive investing is better.
My contention: It’s wrong to position indexing as somehow the mirror opposite of active management. Why? Even if you eliminate active mutual fund managers and their fees from your portfolio, you still need to grapple with three crucial investment decisions—all of which involve the sort of judgment call active investors must make.

Read More

What? Spend It?

Phil Kernen  |  Mar 5, 2021

HISTORY IS FULL of fringe investments that make headlines after rapid—and often inexplicable and indefensible—price increases. Bitcoin is one of the latest examples, leaving even casual observers asking, “What is it and should I buy some?”
First traded in 2009, bitcoin is the best-known cryptocurrency. Thousands of others have been introduced, but many have since died. That’s one problem with trying to pick the right digital currency to purchase: There are low barriers to entry.

Read More
SHARE