Most Recent Stingy News
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| Old man yells at the cloud |
| 12/01/24 8:23 PM EST | Asness |
| "Cliff Asness, of AQR Capital Management, to discuss: the less-efficient market hypothesis, value investing, the quant world, private equity, and much more" [video] |
| More Asness: Cliff Asness and three quant crises |
| The less-efficient market hypothesis |
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| Bet on low costs |
| 12/01/24 3:14 PM EST | Indexing |
| "In his 2017 annual letter, Buffett summarized the results: Over the 10 years, the S&P 500 returned an average 8.5% a year. By contrast, the group of hedge funds returned just 3% annually." |
| More Indexing: Disappearing index effect |
| Mob rule |
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| Norway shrugged |
| 12/01/24 3:12 PM EST | Taxes |
| "Norway's entrepreneurs are now indeed disappearing from society. In the past two years alone, a staggering 100 of Norway's top 400 taxpayers, representing about 50% of that group's wealth, have fled the country to protect their businesses." |
| More Taxes: Debt and taxes |
| Whose tax is it anyway? |
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| Remember the global financial crisis |
| 11/24/24 6:34 PM EST | Bonds |
| "16 years later, some experts believe new risks are emerging. And this time, they are linked to highly indebted companies backed by private equity firms, which are part of the growing but opaque portion of the financial system known as the shadow banking sector." |
| More Bonds: Shorting credit |
| Bonds back in play |
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| Stuck at home |
| 11/24/24 5:02 PM EST | World |
| "The anti-foreign-stock drumbeat has grown louder with each additional year that international markets underperform U.S. shares. Indeed, even though foreign stocks beat U.S. shares in the 1970s, 1980s and 2000s, there are folks today who argue there's no reason to own foreign shares." |
| More World: Misleading indicators |
| Cheap water |
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| Misleading indicators |
| 11/24/24 5:00 PM EST | World |
| "Horstmeyer looked at 34 markets from around the world and examined the relationship between investment returns and GDP growth. What he found was that the relationship was nearly inverse" |
| More World: Cheap water |
| Fooled by randomness |
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| Frequent fees matter more |
| 11/24/24 4:26 PM EST | Funds |
| "What happens here is essentially the eighth wonder of the world in reverse. If fees are charged more often, capital cannot compound at the same rate because any recovery in funds is interrupted by the fees being charged. Over time this is the same as consuming dividend income in a stock instead of reinvesting the dividend into the stock. And this small difference grows larger and larger the longer that happens." |
| More Funds: Asset managers' profits get thinner |
| Ray Dalio's famous trade is sputtering |
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| Cash |
| 11/18/24 3:42 PM EST | Buffett |
| "Why does Buffett have so much cash on hand now, way more than before? Of course, nobody can say for sure. But some things do come to mind." |
| More Buffett: Warren Buffett at BRK's AGM |
| Buffett's 2023 letter to investors |
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| Disappearing index effect |
| 11/18/24 1:50 PM EST | Indexing |
| "A similar pattern has occurred with index deletions. The average effect of being removed from the S&P 500 was -4.6% in the 1980s, -16.1% in the 1990s, -12.4% from 2000-2009, and a statistically indistinguishable from zero -0.6% from 2010-2020." |
| More Indexing: Mob rule |
| Unwanted attention |
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| Rethinking asset growth |
| 11/18/24 1:40 PM EST | Markets |
| "The authors concluded that asset growth captures unique information that is unexplained by other traditional measures." |
| More Markets: Don't place that call |
| Embrace the skew |
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| Shorting credit |
| 11/18/24 1:33 PM EST | Bonds |
| "today, we want to write about shorting credit. Let's start with why shorting credit might be a horrible idea." |
| More Bonds: Bonds back in play |
| Upside down |
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| Cheap water |
| 11/18/24 1:20 PM EST | World |
| "The point is not to claim that all the Sahara could receive cheap desalinated water, but rather that technology is already at a point where we could start building cities in the Sahara if we wanted to." |
| More World: Fooled by randomness |
| The magic of low cost energy |
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| Remember, remember |
| 11/10/24 1:45 PM EST | Behaviour |
| "Because no matter what we do, we can't help remembering past experiences with specific stocks or funds. I know every time I am analysing a stock that I previously owned I involuntarily think of whether that stock has made me money in the past or not. And guess what, this skews my investment decision." |
| More Behaviour: No perfect answers |
| Nostalgia |
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| Advice for the kids |
| 11/10/24 12:50 PM EST | Thrift |
| "We aren't a wealthy family. But we can strive to lift up each generation that follows, so our family remains financially resilient - and doesn't suffer the suffocating money stress that afflicts so many." |
| More Thrift: Spending rules |
| Lifestyle creep is mostly a myth |
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| No perfect answers |
| 11/10/24 12:44 PM EST | Behaviour |
| "I find Munger's comment instructive. It illustrates a reality about personal finance: that the notion of a perfectly optimal answer to any financial question is just that - a notion. Similarly, relying solely on a calculator to make financial decisions rarely results in the best answer." |
| More Behaviour: Nostalgia |
| Sticking with stocks |
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| Ghost jobs |
| 11/10/24 12:29 PM EST | Management |
| "ghost jobs contribute to job search fatigue, increased application costs, and potentially longer periods of unemployment. These effects can skew job seekers' expectations and lead to a misallocation of resources, as they invest time and effort in pursuing positions that are not genuinely available. This, in turn, can elevate reservation wages and disrupt the equilibrium in job search models, affecting overall labor market efficiency." |
| More Management: You cannot cut your way to profitability |
| Companies are lousy market timers |
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| Parkland |
| 11/03/24 12:52 PM EST | Stocks |
| "Parkland is a value play. And maybe a special situation play down the road." Disclosure: I have a few shares. |
| More Stocks: Fairfax shares merit consideration |
| Cement, concrete, and gravel |
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| Don't place that call |
| 11/03/24 12:44 PM EST | Markets |
| "Thales was right, and he ended up making a fortune. Perhaps more important, with his payments to the olive press owners, he invented a new financial concept, now known as an option. Today, options exist across the financial world, and investment funds that employ options have been growing in popularity." |
| More Markets: Embrace the skew |
| A generational investment |
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| Embrace the skew |
| 11/03/24 12:39 PM EST | Markets |
| "To truly benefit from stock investing, it's necessary to embrace both the emotions and the rewards that come with positive skew. This means learning to live with tail events. They may be uncomfortable when they occur, but they are an integral part of long-term success in the stock market." |
| More Markets: A generational investment |
| Faith |
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| Fooled by randomness |
| 11/03/24 12:27 PM EST | World |
| "In economics, finance, politics, and most social sciences we create models with an error term and then conveniently ignore the error term as 'noise'. But nobody is ever taught how to interpret noise even though the noise part is arguably at least as important as the assumed signal." |
| More World: The magic of low cost energy |
| Underwater overseas |
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| The small cap amplifier |
| 10/25/24 5:40 PM EST | Value Investing |
| "Over the first eight decades of recorded US stock market history, from 1926 to 2007, small caps outperformed large firms by a robust 2.5% annualized. The size premium was even stronger among microcaps, which outpaced large firms by 3.2% annualized. Therefore, allocating to microcaps provided incremental value to owning the small cap index, with microcaps delivering an additional 0.7% of return per year." |
| More Value Investing: I love cyclicals |
| Buybacks for US, dividends for EU |
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