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Quote of the Day
"There are few financial variables more correlated to performance than commitment to a strategy during its lean years – both the amount of performance and the odds of capturing it over a given period of time."
(Morgan Housel)
Strategy
- John Rekenthaler, "An inescapable observation is that, over the centuries, no entities have earned anything like Manhattan’s rate of return." (morningstar.com)
- Larry Swedroe, "The great tragedy is that while so many investors idolize Buffett, they fail to take his advice and invest just like him." (marketwatch.com)
- "Warren Buffett hasn’t been reading five newspapers every day for seven decades for no reason. The trick is to find the right balance between exposure to the news while honing the ability to distinguish between news and noise." (rationalwalk.com)
- Brett Steenbarger, "Imagine that you are pitching your trading business to a venture capitalist. How will you convince the VC that this is a business worth investing in?" (traderfeed.blogspot.com)
Finance
- The default rate for shale companies is ticking higher. (wsj.com)
- How 'fake' gold bars make into circulation. (reuters.com)
- MarketAxess Holdings ($MKTX) is on quite a run of late. (ft.com)
Funds
- Tim Edwards of the index investment strategy team at S&P Global says: “The users of index-based products are more active than they’re presented to be.” (wsj.com)
- Less-transparent ETPs are "a clear improvement over traditional open-end mutual funds in many respects." (morningstar.com)
- Active management is not as concentrated as passive management. (institutionalinvestor.com)
Automation
- Human home appraisers are losing out to algorithms. (wsj.com)
- People hate being managed by algorithms. (hbr.org)
Earlier on Abnormal Returns
- Podcast links: review bombing. (abnormalreturns.com)
- What you missed in our Thursday linkfest. (abnormalreturns.com)
- Startup links: real value metrics. (abnormalreturns.com)
- The Swensen Portfolio, Financial Fraud and the Return Gap. (abnormalreturns.com)
