Last week I was on a panel in front of a room full of college students. A few of them have since reached out to me asking for tips on how to get into the financial industry. Unfortunately, I’m not the best person to give this sort of advice because I experienced a lot of…
Animal Spirits: Netflix for Financial Planning
On today’s Animal Spirits we discuss: Teaching kids basic financial advice Financial literacy is an epic fail Netflix for financial planning There are a lot of rich people A hot take on Lyft Research affiliates symposium Listen here Recommendations Spending Time: The Most Valuable Resource New Ideas From Dead CEOs Tweets mentioned Poll: In exchange…
How to Be Wrong and Think You’re Right
Albert Edwards is famous in the financial world for being negative, to put it mildly, on anything and everything related to the future prospects of the world. By his own admission, he’s been bearish for 23 years. Edwards recently shared the following chart which he claims vindicates his bearish take on global stocks even as…
How is the Market Doing?
How is the market doing? This question is answered every day by countless media outlets: “In financial markets, the Dow gained 65 points today while the S&P 500 rose 0.13% and the NASDAQ tacked on 0.25%.” This generic language has accompanied each of the 302 trading days since January 17, 2018. Since that time, these…
These Are the Goods
Articles Factor funds underperform their academic factors by about 3% per year By Dan Rasmussen When a measure becomes the target it ceases to be a good measure By Ryan Krueger The people that missed the bubble spent the next eight years ridiculing the people who got sucked into it. By Jared Dillian Permanent information…
Eye Roll
In New Ideas From Dead CEOs, Todd Buchholz tells a story about the time Akio Morita said no. Long before Sony was a household name, they had an opportunity to turbo-charge their growth. Their hand-held radio caught the attention of the watch company, Bulova. At the time, the young scrappy company was selling units out of a…
The Perfect Track Record
If you’re reading this you probably already heard that the yield curve has inverted, which you can see in the GIF below (H/t Nicky Numbers). You probably also heard that it has a perfect track record of preceding a recession. Empirically, this has not been good for stocks. 1, 2, and 3-year returns have been…
Animal Spirits: Footing the Bill
Mention Animal Spirits to receive 20% off (*New YCharts users only) Stories Discussed Footing the Bill Ben on Kahneman And Ben on IPOs Is real estate a better investment than stocks? Sign up for Tony Isola’s blog The majority of bitcoin trading is not real See Jeffrey Skilling Hedge fund launches fall to 18-year low Listen Here…
Multiples Are Not Valuation
“You have to earn the right to use a multiple.” Simple yet profound words from Michael Mauboussin. I learned this lesson the hard way. My first experience with “investing” – and I use quotes because what I was actually doing is an insult to real investors- was picking stocks based on a ratio I found on the internet….
How Concentration Affects Portfolio Performance
One of the reasons why so many mutual funds fail to beat their benchmark is because so many stocks fail to beat their benchmark. This idea has been pushed forward with papers like The Agony & The Ecstasy: The Risks and Rewards of a Concentrated Stock Position and Do Stocks Outperform Treasury Bills? Vanguard recently came out with a…
