Weekend Reading Roundup

Weekend Reading Roundup

Here are the most interesting and helpful articles I came across this week!  Enjoy!

Hash Power – A Documentary on Blockchains $ Cryptocurrencies (investorfieldguide) – This is actually a three-part podcast series on cryptocurrencies and worth every second if you are at all interested in learning more about this.  If you haven’t already heard this, you are in for a treat.

Passive Versus Active Investing: A Debate (Bloomberg) – “My bottom line is most people are better off with low-cost indexing for most of their money. Yes, active does have a role in asset allocation and portfolio construction, but only when it is 1) low cost; 2) additive to portfolio diversification; and 3) not used by investors to encourage their worst instincts and behaviors.”

Active vs. Passive: The Wrong Debate (peterlazaroff) – “The real comparison should be low-cost versus high-cost, low-turnover versus high-turnover, and rules-based versus forecast-based approach. When you fall on the right side of these comparisons, you position yourself for better investment results.”

When Mean Reversion Fails (pensionpartners) – “None of this is meant to suggest that trees grow to the sky. Mean reversion has failed to occur but that doesn’t mean it has been eradicated. Valuations will eventually move lower and the economic expansion will eventually come to an end.”

Losing With a Winning Hand (ofdollarsanddata) – “…even when we know we are behaving optimally, we may not always get the best results.”

Reference Points (awealthofcommonsense) – “I like to say that the best way to win any argument about the markets is to change your start and end dates. It’s very easy to cherry-pick historical data that fits your narrative to prove a point about the markets. But it’s also important to remember that historical market data is full of caveats and deserves context. Even then it doesn’t tell you everything you want to know about the future.”

The Unfathomable Power of Amor Fati (observer) – This is a really interesting story about the power of stoic optimism by Ryan Holiday.

How to Teach Kids the Value of Money (safalniveshak) – This post includes a great checklist for what to teach your children and when.

From One Percent Decisions:

Perceived Value vs. Actual Value – “People seek perceived value when what they really want is actual value.  In investing, perceived value and actual value are rarely correlated.”

Pension Fund Wants Alpha AND Low Correlation – This piece is about the Iowa Pension Fund and how they go about identifying potential fund managers.  In a word – craziness.

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