Hottest links for Saturday and Sunday October 12-13th, 2013 the weekend edition (see Friday’s edition of hottest links). Get our free daily newsletter (which is being updated to make it superb) and never miss a single linkfest.

Top stories for today and yesterday can be found below; Brief summary… Some great articles about the greats, Bill Gates has a new article on Thomas Edison; Is Warren Buffett the John Maynard Keynes of our time? The big and important difference between financial literacy and using good judgement; Finding value in some close ended funds; How the average investor can beat hedge funds, and cannot hold back from bragging here, lastest returns from the only account where I invest in individual stocks (I own some index and actively managed mutual funds, and have money invested with SAC Capital, JK on last part); Finding value in small cap world (assuming the premium still exists, which is a different article below); Could stopping banker bonuses be a breach of human rights? Yes argues the BOE; That and much more below.

killing it

Hottest Links

Value Investing

Financial Literacy And Good Judgment

There is a big difference between financial literacy and good judgment. [Morgan Housel, The Motley Fool]

Central Securities Presents Rare Investment Opportunity

Central Securities Corp. (NYSEMKT:CET) is one of the quaintest closed-end funds that you’ll ever come across. There is no inflated, return-of-capital-fueled distribution rate. Instead, there is a portfolio stocked with blue-chip equities, such as  Intel Corporation (NASDAQ:INTC), The Bank of New York Mellon Corporation (NYSE:BK), and Walgreen Company (NYSE:WAG). [Mike Taggart, Morningstar]

A Case for Multi Commodity Exchange of India Ltd. (NSE:MCX)

The NSEL, a spot commodities exchange and a subsidiary of Financial Technologies (India) Ltd (NSE:FINANTECH), suspended all trading in forward contracts on July 31, 2013. [Ankur Shah, BeyondProxy]

Has The Small-Cap Premium Disappeared?

Large stocks are represented by the Center for Research in Security Prices at the University of Chicago (CRSP) 1-5 Index (deciles 1-5); small stocks are represented by the CRSP 6-10 Index. [Larry Swedroe, Index Universe]


John Maynard Keynes–The Original Warren Buffett

In the current era of aggressive fiscal stimulus and loose monetary policy following the financial crisis, John Maynard Keynes is often invoked as a forefather of much of the economic thinking adopted by the Federal Reserve in its policy response. [David Foulke, Turnkey Analyst]

A Dozen Things From Ray Dalio About Investing

“The economy is like a machine.” The bottoms-up way Ray Dalio approaches the economy is analogous to value investing.  You start with the simplest possible system since that is the easiest system to understand.  [Tren Griffin, 25iq]

A Profile of Jeffrey Ubben Who Is Taking On Microsoft

Microsoft Corporation (NASDAQ:MSFT)’s management’s biggest worry these days may not be Apple Inc. (NASDAQ:AAPL) or Google Inc (NASDAQ:GOOG), but an investor out of San Francisco. Earlier this year, Jeffrey Ubben announced at a conference that his hedge fund ValueAct had bought $2 billion worth of Microsoft’s shares. The investment might have been seen as a vote of confidence in Microsoft and its management. [Stephen Gandel, Term Sheet]

America’s Greatest Inventor

I love learning about history, especially the history of innovation. I recently got to write the foreword for Edison and the Rise of Innovation, a new book about one of the great inventors ever. I thought I would share the foreword with you, along with a few photos of some of the Edison-related items I’m lucky enough to own. [Bill Gates, TheGatesNotes]

Asset Allocation


Lipper Fund Flows – Politics Run The Markets

Ignoring better-than-expected initial jobless claims reported for the week ended October 9, plus a good start to the unofficial beginning of earnings season, investors bid the S&P 500 Index to a four- week low. The CBOE VOLATILITY S&P 500 (INDEXCBOE:VIX) rose to a height not seen since June as the partial government shutdown hit its ninth day. [Tom Roseen, Alpha Now]

iShares’ Gamba: Institutional ETF Use Up

In the past couple of years, ETFs have emerged as attractive conduits for core exposures among the institutional crowd, Daniel Gamba, head of the Americas iShares Institutional Business at BlackRock, Inc. (NYSE:BLK), told IndexUniverse’s Cinthia Murphy in a recent interview. [Cinthia Murphy, Index Universe]

Hedge Funds

How the Average Investor Can Beat Billion-Dollar Hedge Funds

According to a study cited in Malcolm Gladwell’s latest book David and Goliath, throughout all of the wars fought over the last 200 years, the weaker country has prevailed in nearly 30% of the conflicts. And if the weaker country chose to fight an unconventional war, its success rate shot up to 63.6%. [John Maxfield, The Motley Fool]

Logic 101

Finra: After Twitter Confusion, ‘Mind Your Qs’

Finra, the brokerage industry’s self-regulator, has a simple message for investors after last week’s Tweeter/Twitter confusion: Pay attention to Finance 101. [Steven Russolillo, The Wall Street Journal]

A Great Financial Advisor

Five qualities that make a great financial advisor.  [Peter Dunn, Pete the Planner]

Why Are You Not Indexing?

Conventional wisdom says that if you want to make money in the stock market, you need to exercise fanatical discipline and develop unique competence as an investment analyst. [William Ortel, CFA Institute]

Better Beta Is No Monkey Business

In his seminal book, A Random Walk Down Wall Street, Burton Malkiel argued that a blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by the experts. [Patrick Rudden, Pragmatic Capitalism]


The Secret to Networking

Maximize Your Potential: Grow Your Expertise, Take Bold Risks & Build an Incredible Career (Kindle), edited by Behance’s 99U editor-in-chief Jocelyn Glei, features an interesting question and answer with Sunny Bates — an expert in human network development. [Shane Parrish, Farnam Street]

New High-Speed-Trading Simulator

NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) wants you to test your strategies on their computers. [Matthew Philips, BusinessWeek]

Oppenheimer’s Risky Bond Bets Backfire — Again

The $125 million Oppenheimer Rochester Virginia Municipal Fund Class A (MUTF:ORVAX) is down more than 15% this year, ranking it dead last among single-state municipal bond funds and second-worst among all municipal bond funds. [Jason Kephart, InvestmentNews]

Google To Use Your Name And Photo In Its Online Ads

Thanks to tweaks made to its terms of service today, Google Inc (NASDAQ:GOOG) will be able to use its users’ names and photos in select advertising beginning next month (November 11). [Roberto A. Ferdman, Quartz]

Do Not Ignore Hashtags When Panic-Trading Based On Twitter

Traders tap Twitter, Inc. (TWTR) for top stock tips. [James Mackintosh, FT] Related; Oil traders razor-focused on signs of escalating violence in the Middle East were jolted on Thursday by a Twitter posting from the Israeli military that, at first glance, suggested they had just bombed Syrian airports.[Bess Levin, DealBreaker]

Fleeced By A Fool

The October 7, 2013 Bloomberg Markets Magazine hit piece “How Investors Lose 89% of Gains from Futures Funds,” by David Evans, contains more gross inaccuracies and questionable statements than can address in this brief rebuttal. [PeterLBrandt]

Important Stock Market Charts In The World

Top portfolio managers, strategists, analysts, and economists sent us what they deem the most important charts in the world. [Matthew Boesler, Business Insider]

Net income

Hottest Links: Not The Onion

Stopping Bank Bonuses Could Breach Human Rights, Warns Bank Of England

Tough new powers to strip top

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