Book notes: A dozen things learned from Charlie Munger about making rational decisions. Insights from Tren Griffin’s Charlie Munger: The Complete Investor. (25iq)
Quote of the Day
"Always have a willingness to say no. You don’t have to have an opinion about everything or a position in everything."
(Ben Carlson)
Chart of the Day

Since S&P 500 inception in 1957:
48 drawdowns from all-time highs of 5%
17 of 48 became 10%
9 of 48 became 20%+
Markets
- The sell-off has caught up stocks that are not energy or China-related. (dashofinsight.com)
- In case you needed some signs of an oversold market. (disciplinedinvesting.blogspot.com)
- Is the bull market over? (bloombergview.com)
- Let the market tell you what it is going to do next. (adamhgrimes.com)
Strategy
- Five things investors shouldn't do now. (blogs.wsj.com)
- A 6% decline shouldn't invoke panic. (nytimes.com)
- If you are nervous now re-echeck your portfolio. (marketwatch.com)
- Stop reading market news this weekend. (pragcap.com)
Offers
- Karma Go: WiFi That Goes Wherever You Do. Join now and get $10 off. (yourkarma.com)
- The 4th annual Stocktoberfest is here. Where the BEST in fintech, trading and investing meet. (stocktoberfest.co)
Companies
- Why Zulily ($ZU) was ultimately a disapopintment. (recode.net)
- How low can Apple ($AAPL) go? (allstarcharts.com)
Finance
- Why would you want to replicate the returns of the hedge fund industry? (bloombergview.com)
- Stock buybacks are overhyped. (barrons.com)
Funds
- Leveraged portfolios are great on paper, challenging in practice. (news.morningstar.com)
- The case for low-cost, actively managed bond funds. (obliviousinvestor.com)
- The active/passive split is now a beta/strategic beta/active/alternative split. (news.morningstar.com)
Global
- Why investors should avoid the Chinese stock market. (aswathdamodaran.blogspot.com)
- A simple theory of China right now. (marginalrevolution.com)
- The bear market in emerging market bonds is a reality. (nytimes.com)
Economy
- A succinct summary of the economic week. (ritholtz.com)
- The economic schedule for the coming week. (abnormalreturns.com)
Eariler on Abnormal Returns
- Top clicks this week on the site. (abnormalreturns.com)
- What you may have missed in our Saturday linkfest. (abnormalreturns.com)