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09/02/2026

Imagine you visit a doctor. She runs a test for a rare disease, one that affects one person in a thousand. The test is very accurate. It correctly identifies the disease 99% of the time, and it gives a false positive only 1% of the time. Your test comes back positive. How worried should you be?

I'm sorry to tell you that it's a positive result.

Most people's instinct is very worried. The test is 99% accurate. That sounds nearly certain. But the mathematics tells a different story, and it is one of the most counterintuitive results in all of probability. Here's why.

The test was accurate in two different ways. Among the small group of people who had the disease, it caught 99% of them. Those are true positives. Among the much larger group who did not have the disease, it correctly cleared 99% of them true negatives. But look at the 1% it got wrong. Those are healthy people the test flagged as sick. False positives. Let me show you. Start with 10,000 people. About 10 have the disease. 9,990 do not. Among the 10, roughly 10 true positives. Among the 9,990, about 100 false positives. 1% of a very large group is bigger than 99% of a very small one. So, put the two side by side. About 10 true positives, about 100 false positives. 110 positive results in total, and only 10 of them are real. 10 divided by 110 is roughly 9%. A positive result on a 99% accurate test does not mean a 99% chance of disease. In this example, there is only about a 9% chance that a positive result means the person actually has the disease.

That result is shocking the first time you encounter it.

Yes, it certainly is.

It was also for most of Western history incalculable. No general systematic method was widely available for combining prior knowledge, the rarity of the disease with new evidence, the test result, to arrive at an updated probability until a minister in Tundridge, Wales, England, worked it out in private sometime in the middle of the 18th century. Welcome to the pioneers of probability with me, Mark Hebner. https://www.ifa.com/videos/pioneers-of-probability-thomas-bayes

Disclosure:

This presentation is provided for educational and informational purposes only and should not be construed as investment, legal, or tax advice. The views expressed are those of the presenter as of the date of recording and are subject to change without notice. References to investment principles, market behavior, or investment strategies are illustrative in nature and are not recommendations to buy, sell, or hold any security. All investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Content is AI-assisted. Index Fund Advisors, Inc. is a registered investment adviser. For additional information, please visit adviserinfo.sec.gov or www.ifa.com.

09/01/2026

Here is a game. We flip a fair coin, repeatedly, until it lands tails.

If tails appears on the first flip, you win two dollars. If it first appears on the second flip, four dollars. The third, eight dollars. Each additional flip doubles the prize

To play this game, you have to pay a fee upfront: Your stake.

How much would you pay to play?

Take a moment. Think about it.

The expected value of this game — the probability-weighted average of all possible payouts — is infinite. Literally infinite. By the logic of every probability theorist from Huygens to de Moivre, you should be willing to pay any finite sum to play a game with an infinite expected return.

Would you pay a thousand dollars? Ten thousand? Everything you own?

Almost nobody would. And that gap — between what the mathematics said you should do and what every rational person actually does —

was one of the most important puzzles in probability theory for the first half of the eighteenth century, until Daniel Bernoulli found the answer.

Welcome to Pioneers of Probability with me, Mark Hebner. https://www.ifa.com/videos/pioneers-of-probability-daniel-bernoulli

Disclosure:

This video is for informational and educational purposes only and does not constitute a solicitation or recommendation to buy or sell any security. References to diversification and index investing reflect IFA's general investment philosophy and are not a personalized recommendation for any individual investor. The historical and mathematical concepts discussed are intended to illustrate the development of probability theory and its relevance to investing. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. Content is AI-assisted. Index Fund Advisors, Inc. is a registered investment adviser. For additional information, please visit adviserinfo.sec.gov or www.ifa.com.

Stock market concentration has accelerated, but identifying tomorrow’s biggest winners remains extremely difficult.New r...
09/01/2026

Stock market concentration has accelerated, but identifying tomorrow’s biggest winners remains extremely difficult.

New research covering nearly 30,000 U.S. stocks from 1926 through 2025 found that just 46 companies generated half of the market’s approximately $91 trillion in net wealth creation. The evidence illustrates why relying on a small group of past winners may leave investors exposed to substantial selection risk.

Broad diversification allows investors to participate when unexpected companies emerge and compound over time, without requiring anyone to predict those winners in advance.

Read Stock Market Concentration Has Accelerated: https://ifa.com/articles/stock_market_concentration_accelerated_-_here_what_data_shows



This is for informational purposes only, not financial advice. Linked content is not a guarantee of future results.

Debt may feel like a modern financial challenge, but its history stretches back thousands of years.From Hammurabi’s clay...
08/27/2026

Debt may feel like a modern financial challenge, but its history stretches back thousands of years.

From Hammurabi’s clay tablets to today’s revolving credit balances, societies have long recognized the same tension: borrowing can create opportunity, but unmanaged debt can claim future income, flexibility, and financial freedom.

Explore what the long history of owing can teach investors about debt, compounding, leverage, and the importance of maintaining financial flexibility.

Read the full article at IFA.com.
https://www.ifa.com/articles/from_hammurabi_ledger_minimum_payment_long_history_owing_freedom_costs

This is for informational purposes only, not financial advice. Linked content is not a guarantee of future results.

In 1685, an eighteen-year-old sat in a French prison — not for any crime, but for attending the wrong church. When he wa...
08/26/2026

In 1685, an eighteen-year-old sat in a French prison — not for any crime, but for attending the wrong church. When he was released, Abraham de Moivre fled to London and never returned.

He would become a Fellow of the Royal Society and a close friend of Isaac Newton — who famously told visitors, "Go to Mr. de Moivre; he knows these things better than I do." Yet he never landed a university post, earning his living instead by calculating odds for gamblers at Slaughter's Coffee House.

There, in the noise of a London coffee house, he discovered one of the most important shapes in all of science: the normal distribution — the bell curve that appears wherever chance accumulates. From heights to test scores to market returns, small random causes produce astonishingly predictable patterns.

From exile came perspective. From perspective came understanding.

📖 Read the full story on IFA.com.
https://www.ifa.com/articles/exile_slaughter_coffee_house_abraham_moivre

This is for informational purposes only, not financial advice. Linked content is not a guarantee of future results.

Chance may fluctuate in the short run — but over time, it obeys order.Jacob Bernoulli spent twenty patient years proving...
08/25/2026

Chance may fluctuate in the short run — but over time, it obeys order.

Jacob Bernoulli spent twenty patient years proving one of the most important ideas in all of mathematics: the Law of Large Numbers. As the number of trials grows, the average outcome converges on the true probability. Flip a coin ten times and you might get seven heads. Flip it ten thousand times, and you'll land remarkably close to half.

Published posthumously in his masterpiece Ars Conjectandi (1713), Bernoulli's work transformed probability from a study of games into a mathematical science — one that underpins insurance, statistics, economics, and modern investing.

He so loved the logarithmic spiral that he asked for it on his tombstone with the words "Eadem mutata resurgo" — "Though changed, I rise again the same."

From conjecture comes understanding. From understanding comes wisdom.

📖 Read the full story on IFA.com
https://www.ifa.com/articles/conjecturing_jacob_bernoulli

This is for informational purposes only, not financial advice. Linked content is not a guarantee of future results.

08/25/2026

Mark Hebner and Wes Long talk to Apollo Lupescu about various topics in a town hall format in this 2026 Q2 Market Review. https://www.ifa.com/videos/q2-2026-town-hall

This is for informational purposes only, not financial advice. Linked content is not a guarantee of future results.

08/21/2026

A lot of financial anxiety isn't really about money at all. One writer suggests the path to worrying less about your portfolio starts somewhere unexpected.



For informational purposes only. Not investment advice.

Quotes and opinions expressed are those of the cited authors and are for informational purposes only. They do not necessarily reflect the views of the firm.

All investing involves risk, including possible loss of principal. There is no guarantee that any investment strategy or approach will achieve its objectives.

08/19/2026

The thrill of investing can feel a lot like the thrill of gambling — and that's no coincidence. One writer explains what's happening in your brain when you're chasing the next win.



For informational purposes only. Not investment advice.

Quotes and opinions expressed are those of the cited authors and are for informational purposes only. They do not necessarily reflect the views of the firm.

All investing involves risk, including possible loss of principal. There is no guarantee that any investment strategy or approach will achieve its objectives.

Does the SPIVA Scorecard tell the whole story?A new academic paper argues that traditional SPIVA results may understate ...
08/18/2026

Does the SPIVA Scorecard tell the whole story?

A new academic paper argues that traditional SPIVA results may understate active fund performance by measuring outcomes differently. The authors report that while 79% of active U.S. equity funds underperformed their benchmark in 2024, the percentage of investor assets that underperformed was lower.

But the bigger lesson isn't that active management has suddenly beaten indexing.

The article highlights that changing the methodology changes the question being asked. Even after adjusting the numbers, evidence continues to support principles that many investors already know well:

✅ Keep investment costs low

✅ Stay broadly diversified

✅ Avoid performance chasing

✅ Focus on long-term discipline rather than headlines

As the article notes, the debate may refine the data, but it does not materially change the case for an evidence-based investment approach.

Read the full article:
Does the SPIVA Scorecard Understate Active Fund Performance?

https://www.ifa.com/articles/does_spiva_scorecard_understate_active_fund_performance

Past performance is not indicative of future results. Investing involves risk, including possible loss of principal.

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