I really respect David Einhorn because he has evolved from a pure value investor into recognizing the importance of macro. Anybody who doesn’t recognize that at this point is going to pretty useless going forward. Buy great companies with high…
Nothing new here in a Sunday New York Times piece by Robert Shiller, “An Echo Chamber of Boom and Bust”, but it’s always worth remembering that the stock market is people: THE global signs of a recovery in economic confidence…
Alice laughed: “There’s no use trying,” she said; “one can’t believe impossible things.” “I daresay you haven’t had much practice,” said the Queen. “When I was younger, I always did it for half an hour a day. Why, sometimes I’ve believed…
(Via Infectious Greed)
MOMENTUM is one of the great puzzles of finance. It is the tendency for stocks that have previously risen to keep going up. Of course, it does not square with efficient market theory, which states that past price information tells…
I walked into the office yesterday evening and there was someone on CNBC talking about how the 50-day moving average of the S&P 500 rising above the 200-day moving average was telling us the market was getting ready to rise…
The Yale model is probably “true over time. But in calendar ’08, it’s exactly wrong. The less liquid you are, the more you’re getting hurt. – Swensen protege David Salem Cooper Union’s endowment is going to be flat or slightly…
What does an M.B.A. do for you that a doctorate in philosophy can’t do better? ……. M.B.A.s have taken obfuscatory jargon—otherwise known as bullshit—to a level that would have made even the Scholastics blanch. – Matthew Stewart, “The Management Myth”,…
Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes the bubble on a whirlpool of speculation. When the capital development of a country becomes a by-product of the…
I just came across a shocking post from Jeff Mathews on Berkshire’s equity portfolio: “This Just In: Berkshire Equity Portfolio Back To Its Cost Basis”, Saturday February 28. In that post, Mathews says that Berkshire’s equity portfolio, which had a…