Hottest links for Monday, 9th December, the late edition (see Weekend’s edition of hottest links). Get our free daily newsletter (which HAS BEEN RECENTLY UPDATED) 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 included below.  We’ve got a veritable cornucopia of links today, including some words of wisdom from Jason Zweig, a series of articles on Bitcoin mayhem – with some declaring flatly that it’s not a currency, and some predicting it will go up 100x in value, there’s bound to be some interesting commentary – and a possible pullback in the emerging market gold rush.  Also, don’t miss a fascinating, thoughtful piece on gender roles on Wall Street and the rise of stay-at-home husbands.

Hottest Links: Stories

Value Investing

A Dozen Things I’ve Learned from Jason Zweig

The future value of every investment is a function of its present price. The higher the price you pay, the lower your return will be. [Tren Griffin, 25iq]

Coca-Cola’s Indian experience

That’s something I keep in mind as I think of The Coca-Cola Company (NYSE:KO)’s experiences in India. Coca-Cola launched operations in India in 1950 shortly after independence. Our business grew steadily. [Muhtar Kent, McKinsey & Company]

The Five Skills of Disruptive Innovators

In The Innovator’s DNA: Mastering the Five Skills of Disruptive Innovators, authors Jeffrey Dyer, Hal Gregersen, and Clayton Christensen uncover the origins of “innovative-and often disruptive-business ideas.” [Shane Parrish, Farnam Street]

Eric Topol interviews Atul Gawande

Atul Gawande, MD, MPH, wears many hats, including that of a surgeon, researcher, journalist, and author. In this segment of Medscape One-on-One, Dr. Gawande talks with Eric J. Topol, MD, about what inspires him, his plans for the future, and why he’s secretly a frustrated rock singer.  [Joe Koster, Value Investing World]

Value investing for retirement portfolios

Does value investing make sense for retiree portfolios? Warren Buffett, at 83 years old and with a net worth of about $60 billion, doesn’t seem to worry about time horizon when buying stocks — the true value of which might not be realized for many, many years. [Robert Powell, MarketWatch]

Infusystems and the Round 1 Recompete Analysis

I’ve noticed a few more SeekingAlpha articles  discussing the investment inInfuSystem Holdings Inc (NYSEMKT:INFU), including discussions about the result of the CMS Round 1 Recompete.  If you would like to read more about the Recompete process, you can visit the CMS website.  [Ray Bonneau]


Damn you, Mr. Sharpe

What interests me the most in such reports is the last column, i.e. the Sharpe ratio, which basically measures the volatility-adjusted returns. As a rule of thumb, anyone consistently below one should not be paid much. [barnejek’s blog]

hedgeindex Hottest Links

Front Running Pathetically Stupid Hedge Fund Managers

We are coming down the home stretch now and bonuses are at stake, pal. Your local hedge fund managers would prefer to make $100 mill for the year, instead of a paltry $75 million. Here are the stocks that fit this criteria, courtesy of The PPT. [The Fly, iBankCoin]

Hottest Links: Value Investing For Retirement, Bitcoin Bias, And Zweig

Bargains Beckon Funds to Europe With S&P 500 Past Prime

Oliver Pursche, a Suffern, New York-based manager beating 97 percent of rivals in 2013, bought Total SA (ADR) (NYSE:TOT) (EPA:FP) and Royal Dutch Shell plc (ADR) (NYSE:RDS.A) (NYSE:RDS.B) for their relatively high dividends and low valuations relative to peers. Sanofi SA (ADR) (NYSE:SNY) (EPA:SAN) in Paris is among about 25 new stocks added by Timothy Ghriskey’s Solaris Asset Management LLC in Bedford Hills, New York. [Whitney Kisling and Callie Bost, Bloomberg]

Active managers rally to strike against drones

Passive managers have dominated sales for five years [John Authers, FT]

Hidden Volume From Small Trades to Hit Screens Today

The biggest visual impact will be on high-priced, highly liquid stocks, such as Apple Inc. (NASDAQ:AAPL), Google Inc. ( NASDAQ:GOOG), and Inc (NASDAQ:PCLN) Terminals could show an increase in volume for those stocks of between 15% and 40%, analysts say. [Bradley Hope, Money Beat]

Why The Ideological Hatred of Bitcoin?

There seems to be an inherent hatred of Bitcoin by certain groups of people.  Some people feel the need to boldly declare that Bitcoin isn’t a form of money. [Cullen Roche, Pragmatic Capitalism]

Japan, China, India: Two Big Exceptions and a Rule

When the Washingtonians adopted a solution (such as it was – a suspension of the debt ceiling until February 7, 2014), the Nikkei picked up for the week in the middle of the month. But there remained concerns about the appreciation of the Yen and unsatisfactory numbers came into the public domain for the second quarter performance.  So the benchmark ended the month again heading down. [Christopher Faille,]

October 2013 YTD 2013 2012
Topix 1000 0.0% 21.4% 6.3%
Nikkei 225 -0.9% 20.5% 10.8%
TSE Mothers -4.3% 77.4% -8%
AsiaHedge Japan Long/Short Equity ($) 0.6% 27.7% 7.5%

Fund sees Brazilian fraud as next big thing in emerging markets

Global investors may be growing wary of emerging markets as the US prepares to scale back its monetary largesse next year. [Joe Leahy, FT]

A decade of markets, mayhem, and investing

Individual stocks would rise and fall with abandon on any given day. But the broad market would generally trade in a narrow band: It was rare for the Dow Jones Industrial Average (INDEXDJX:.DJI) or the S&P 500 INDEX (INDEXCBOE:SPX) stock indexes to move 3% in any direction in a session. [Lauren Silva Laughlin, CNNMoney via The Reformed Broker]

The Efficient Market Hypothesis is Dead

Barnes & Noble, Inc. (NYSE:BKS) Friday price/”news” action officially killed the Efficient Market Hypothesis for me. [Kid Dynamite’s World]

Jim Chanos, bad news bear, urges market prudence

Prominent short-seller Jim Chanos is probably one of the last true “bad news bears” you will find on Wall Street these days, save for Jim Grant and Nouriel Roubini.  [Jennifer Ablan, Reuters]

This Year’s Trash, Next Year’s Treasure?

My friend Larry McDonald is out with a year-end piece at Forbes that looks at a very interesting phenomenon we often see each December – once the tax-selling pressure abates from losing stocks in one calendar year, they can often go on to become the following year’s grand slams… [Joshua M Brown, The Reformed Broker]


Open Thread: Make the Bear Case

The past few weeks, I have been arguing against the notion that we are in a bubble. Let’s look at the other side of the argument: What is the (rational) bear case? We know stocks are no longer cheap, and this bull — already up 160%+ — is on the high end of the range. [Barry Ritholtz, The Big Picture]

Bitcoin prices could swell 1,000 times

Bitcoin was last priced at $907.77, according to online exchange Mt. Gox. They bounced off a low of around $700. The crypto currency can be exchanged for traditional currencies like dollars or mined by harnessing several computers’ processing power to perform a complicated algorithm. [Tom Bemis, The Tell]

Everyone Betting On Bitcoin

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