3 min
The Ultimate Superpower in Investing
To reap the biggest rewards you must be able to take the painful hits and keep moving forward. Which is why the ultimate superpower in investing is being good at suffering.
(6min _ CharlieBilello)
Lazy Work, Good Work
The point is that productive work today does not look like productive work did for most of history. If your job was to pull a lever, you were only productive if you were pulling the lever. But if your job is to create a marketing campaign, you might be productive sitting quietly with your eyes closed, thinking about design.
(4min _ CollaborativeFund))
Why the Stock Market Doesn’t Like High Inflation
Buffett’s reasoning here was based on the idea that return on equity for U.S. corporations is relatively stable over time at around 12%. ROE measures how much profit corporations generate for every $1 of shareholder equity.
Obviously, the prices people are willing to pay for that ROE can vary quite violently at times, but the ROE itself is relatively sticky.
(6min _ BenCarlson)
After The Fact
But all wealth relies on the ability to receive an extra dollar and say, “I could spend this, and spending feels great, but I’m not going to.” It’s the same as turning down a big meal after working out, and it’s just as hard. All great things are hard.
(4min _ CollaborativeFund))
Intangible Value
Value investing has struggled over the past decade. We believe this is due to its failure to incorporate intangible assets, which play an increasingly crucial role in the modern economy. We consolidate our prior research to construct a firm-level measure of intangible value. We find that expanding intrinsic value to include intangibles can help restore value investing to its former glory.
(30min _ SparklineCapital)
David Deutsch: Optimism, Pessimism and Cynicism
With so much progress in the world, how can pessimism still be widespread? It is because of cynicism, denying that “so-called-progress” is progress, argues David Deutsch, professor at Oxford University and one of the world’s leading intellectuals on optimism.
(13min _ warpnews)
Why Are Inflation-Protected Bond Funds Losing Money?
…the question revolves around what TIPS are currently pricing in for future inflation compared to what an investor expects to happen. “You want to buy TIPS when the breakeven rate is lower than your inflation expectations,” says Jacobson.
Looking back to the breakeven rates, the TIPS market is priced for inflation to be 2.8% over the next five years.
(6min _ Morningstar)
„Structured data constitutes <20% of all outstanding data. In finance its mainly market and accounting data that has been picked over for decades. If the important questions could have been answered with that, they would have been solved by now.“ @ckaiwuhttps://t.co/EFilw3RbA8 pic.twitter.com/tCIeeFROp9
— Frederik Gieschen (@NeckarValue) February 13, 2022
Jeremy Grantham: The U.S. Market Is in a Super Bubble
The GMO strategist and perma-bear thinks the major asset classes are inflated but calls value stocks ‚pretty darn cheap.‘
https://www.morningstar.com/podcasts/the-long-view/148
“Es zeichnet einen gebildeten Geist aus, sich mit jenem Grad an Genauigkeit zufrieden zugeben, den die Natur der Dinge zulässt, und nicht dort Exaktheit zu suchen, wo nur Annäherung möglich ist.” _ Aristoteles