During this period, I began contributing articles by way of tumblr to Yahoo Finance. That additionally meant that each article would begin with an image, graph, or photograph.
In my view, these have been my greatest posts written between August and October 2014:
Hedge funds and mutual funds are shells — what goes into them issues greater than the type itself.
Down 70%+ since then. In common, complexity isn’t rewarded in investments, and notably insurance coverage corporations. It additionally helps for those who select strains of enterprise which are good dangers, which long-term care and mortgage insurance coverage aren’t.
Shortcuts in investing are usually not a good suggestion.
Prescient — the liberal reservers haven’t finished properly as a gaggle. I might be doing an replace on this.
Survivorship bias has an impact on all of our funding statistics. Try to fight that by studying historical past books — the solely factor extra risky than markets is historical past.
It’s not as straightforward at it appears, and sometimes IRRs overstate the realized returns when you think about capital that’s locked up.
Beware of being bought an funding; relatively, analysis your investments rigorously, maybe with the assist of a talented and trusted good friend
Managements need to forestall hostile takeovers via not leaving so much of idle money on the stability sheet.
The Financial Stability Oversight Council doesn’t perceive what companies contribute to systemic danger.
Why the CFA “Future of Finance” challenge was unlikely to go far. Is that also round?
If you cease measuring efficiency and danger, the efficiency doesn’t change, and the danger doesn’t go away
The very first thing to recollect is that retirement is a contemporary idea. That the world existed with out retirement for over 5000 years might imply that it isn’t a essential establishment. For an in depth touch upon this, please seek the advice of my article, “The Retirement Tripod: Ancient and Modern.”
When belongings are extremely levered, volatility can morph into everlasting destruction of capital.
If a big quantity of bonds inside an ETF are illiquid, all types of humorous issues might occur, however they wont make us snicker.
It ought to mirror the alternative value of the unlevered funds.
A couple of ideas and tips
Money administration is way more durable when you must draw funds recurrently to cowl bills. Also, most individuals overestimate how a lot cash they will draw from investments.
…Howard Simons, astutely would remark one thing to the impact of: “The stock market is not a futures contract on GDP.” This a lot is true, however why is it true? How can the market go down on good financial information?
Are elements getting overused?
An examination of the Fairholme Fund, and what returns that a mean investor acquired from it.
An examination of why rates of interest don’t should go up.
What occurred once I met Bill Gross…
It’s more durable to create an enormous disaster than you assume, but when sufficient events borrow sufficient cash at the similar time, we simply may be capable of do it.
SOURCE: The Aleph Blog – Read whole story here.