Tuesday, September 8, 2009
The new auto industry breakdown
Just in case you weren't keeping up on all the changes to the US auto industry, here's a handy graphic to bring you up to speed.
Friday, September 4, 2009
Linux and high frequency trading.
Its not often that you find an article about linux (I am a user), stock trading, and a local company here in Raleigh (Red Hat).
Its all a bit geeky, but if you're so inclined, read on. Apparently RedHat Linux powers the world's fastest stock exchange.
Incidentally, I use ubuntu linux.
Its all a bit geeky, but if you're so inclined, read on. Apparently RedHat Linux powers the world's fastest stock exchange.
Incidentally, I use ubuntu linux.
The problems with alpha...
In my MBA class this semester, we haven't gotten to alpha yet... but this post on the unknown professor's blog touches on the weakness of alpha. The whole video is worth watching.
The source of the video is "falkenblog", and a more detailed post on the topic is here.
The quote:
made me laugh out loud.
The source of the video is "falkenblog", and a more detailed post on the topic is here.
The quote:
One should remember that Enron was the subject of Harvard Business School case studies in 'best practices' management, they emphasized their 'risk management' and received plaudits there.
made me laugh out loud.
CNBC - it makes my head hurt
The dumbest TV presenters are not on the afternoon chat shows, they are on CNBC. The Self-Evident blog has an excellent post on the latest CNBC idiocy.....
My favorite quote "I don't understand how that relates to what Larry was saying" - right because you are STUPID.
Actually for pure comedy value, CNBC is excellent.
My favorite quote "I don't understand how that relates to what Larry was saying" - right because you are STUPID.
Actually for pure comedy value, CNBC is excellent.
Thursday, August 27, 2009
Finance Fallacy #1
OK, Here is fallacy #1 - saving is not investing. I don't think I would list this as number 1, as I think we are stepping into the realm of semantics a little here.
Finance Fallacy #2
In light of my recent post on "stocks for the long run" Zvi Bodie argues why the idea of "stocks for the long run" is flawed. Transcript and audio is here
His basic idea, which is not new, he's been harping on it for a long time, is that stocks will on average beat bonds, but only on average. This means that the average investor will do OK investing in stocks for their retirement. But some investors will do a lot better than average and some will be do terribly (and end up eating dog food in their old age, as Zvi elegantly states). As an individual investor has only one shot at getting it right, being right on average is not too helpful.
Definitely worth listening to.
Incidentally, this is finance fallacy number 2, I'll have to look up what #1 is.
His basic idea, which is not new, he's been harping on it for a long time, is that stocks will on average beat bonds, but only on average. This means that the average investor will do OK investing in stocks for their retirement. But some investors will do a lot better than average and some will be do terribly (and end up eating dog food in their old age, as Zvi elegantly states). As an individual investor has only one shot at getting it right, being right on average is not too helpful.
Definitely worth listening to.
Incidentally, this is finance fallacy number 2, I'll have to look up what #1 is.
Hedge Fund Letters
Ever wanted to know what a hedge fund manager thinks?...Felix Salmon posts links to two hedge fund letters. Interesting stuff.
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