Hottest links for Saturday-Sunday, April 5th-6th, the weekend edition. Get our free daily newsletter and never miss a single linkfest. Also, now if you sign up you will get our new e-book on value investing.
Top stories for today are posted below. Lots of great links today including great interviews with Daniel Kahneman, Jason Zweig, Howard Marks and other greats. Also make sure to check out our full coverage of the Value Investing Congress in Las Vegas. Other great articles below on value stocks, behavioral finance, investment process and more in today’s hottest links.
Hottest Links: Stories
A Discussion on the Work of Daniel Kahneman
Edge.org asked the likes of Christopher Chabris, Nicholas Epley, Jason Zweig, William Poundstone, Cass Sunstein, Phil Rosenzweig, Richard Thaler & Sendhil Mullainathan, Nassim Nicholas Taleb, Steven Pinker, and Rory Sutherland among others: “How has Kahneman’s work influenced your own? What step did it make possible?” Kahneman’s work is summarized in the international best-seller Thinking, Fast and Slow. [Shane Parrish, Farnam Street]
Bernard Baruch’s investment philosophy
A true classic “Baruch: My Own Story” by Bernard Baruch lays down Baruch’s investment philosophy in one chapter. Here are parts that I found interesting. I have heard attributed to Sir Ernest Cassell, who was the private banker to King Edward VI, a remark that I wish I had thought of first. [Chetan Parikh, CapitalIdeasOnline.com] Part II: Some people, after selling, bedevil themselves with thoughts of “if only I had done this,” To do this is both silly and demoralizing. No speculator can be right all the time. In fact, if a speculator is correct half of the time he is hitting a good average. [Chetan Parikh, CapitalIdeasOnline.com]
61% of People Don’t Have a Budget—Do You?
Imagine you’re in a room with 10 people. Take a look around. Six of you don’t have a budget. Given those odds, I suspect one of those people might be you. Why? Most people I know really hate budgeting. [Carl Richards, Behavior Gap]
Can You Guess This Asian Wide-Moat Company?
The new monthly issue of The Moat Report Asia investigates the Northeast Asian-listed who is the world’s largest maker of an essential component with applications in apparel, shoes, diapers, car seats etc. All top 20 global athletic shoe brands, including Nike Inc (NYSE:NKE), adidas AG (ADR) (OTCMKTS:ADDYY) (ETR:ADS) (FRA:ADS), Reebok, Sketchers, UnderArmor are customers and this Asian innovator with R&D capabilities has forged long-term “spec-in” partnerships with them. [Koon Boon Kee, BeyondProxy]
Interactive Case Study
It’s March 2010, and the stock market has rallied from hitting a bottom in 2009, but who knows whether it will fall again. Tenneco Inc (NYSE:TEN) is one of the world’s largest producers of automotive emission control, ride control products and systems – so is linked to the cyclical automotive industry which has obviously taken a big hit in the last couple of years. [Investing Sidekick]
Activists here to stay as war chests near $100 billion
That means investors need to be prepared for more crusades to replace CEOs, Twitter campaigns lobbying for special dividends, and letters urging management to find white-knight bidders, as well as quieter efforts to convince corporate boards to change strategy or return cash to shareholders. [William L. Watts, Market Watch]
Wealth Year 2015
The projected wealth of China in 2015 could mean it producing 27% of all the wealth in the world, if the economic trends established between 1975 and 002 continue for another 13 years. In year 1 of the current era China produced 26% of the wealth in the world, but very slowly declined to generating only 5% of the world total in 1960. [worldmapper.org]
Try Doing Nothing for a Change
As I have relentlessly drummed into your heads, the Employment Situation report is “the single most over-hyped, over-analyzed, over-emphasized, least-understood economic releases known to mankind.” It is also of very little utility for investors, a mostly meaningless exercise, the exception being when a long-standing employment trend begins to reverse, something that occurs a few times in a decade. [Barry Ritholtz, Bloomberg]
Welcome Back to 2007
Artificially low rates have many spillover effects, including encouraging debt buyers to both accept more risk and pay higher prices. Even the folks peddling the products have concerns about valuations. [Cook & Bynum]
Greenberg: My Worst Mistakes
I’ve learned that the hard way more than a few times in decades of reporting, researching and writing about companies. Even the smartest — yes, that includes Warren Buffett — sometimes get it wrong. [Herb Greenberg, Herb on TheStreet]
Hottest Links: Not the Onion
New York state fast food chain ‘bans’ Putin
Mighty Taco, a Buffalo-based chain of Mexican fast-food restaurants, has banned Russian President Vladimir Putin from all of the company’s 23 locations in western New York. [AP, CNBC]