Hottest Links: Groupthink, Druckenmiller, Michael Price, Valuations

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Hottest links for Monday October 21st, 2013 the late edition (see Weekend’s edition of hottest links). Get our free daily newsletter (which is being updated to make it even better) and never miss a single linkfest.

Top stories for today can be found below;

Hottest Links

Value investing

The Groupthink Olympics, Fall 2013

Barron’s polled a 135 money managers, large and small, around the country for their cover story this week and the consensus is – hang on to your hats – bullish and cautiously optimistic. [Joshua M Brown, The Reformed Broker]


Investing for the Fun of It

Many fans of stock indexing set a little money aside to bet on riskier investments. Here’s how to do it safely. [Weekend Investor, The Wall Street Journal]

A Dozen Things I’ve Learned from Michael Price

Michael Price is another successful investor who ignores macro forecasts in favor of a bottoms-up analysis. [Tren Griffin, 25iq]

The Scuttlebutt Approach

Phillip Fisher had a profound influence on both Warren Buffett and Peter Lynch in their capital allocation process and had first coined the “scuttlebutt” technique when he wrote Common Stocks and Uncommon Profits. [Tannorpilatzke, Outlier Allocators]

Different Takes On Oil Prices In 2008

It’s interesting that the fundamental investor and the economist attribute the 2008 rise in oil to supply and demand while the traders attribute it to speculation. In hindsight, I guess Paul Tudor Jones was probably the most correct in his balance of the two. [Joe Koster, Value investing World]

Valuations sky-high as Equity Indexes Hit Record Highs

The forward p/e of the S&P 500 (INDEXSP:.INX) jumped to 14.6 at the end of last week, the highest since January 19, 2010. The SPDR S&P 400 Mid Cap Value ETF (NYSEARCA:MDYV) and SPDR S&P 600 Small Cap ETF (NYSEARCA:SLY) spiked to nose-bleed p/e ratios of 16.8 and 18.3. All three market-cap indexes are at record highs. [Ed Yardeni, Pension&Invesment]

PE ratios Hottest links

Cobalt Capital’s Thesis on EOG Resources: Q3 Letter

Wayne Cooperman’s hedge fund Cobalt Capital is out with its Q3 letter.  In it, they briefly detail their thesis on EOG Resources (EOG), a stock they were buying in the third quarter. [Market Folly]

Pension Fund Managers

In a short video to the National Association of Pension Funds, the Prince outlined why pension fund managers arguably have a duty to “identify and manage” a variety of sustainability risks. [John Kingham, UK Value Investor]


CFTC Issues FAQ Regarding Commodity Options

On September 30, 2013, the Division of Market Oversight of the US Commodity Futures Trading Commission (CFTC) released responses to Frequently Asked Questions regarding Commodity Options (FAQ). [Noam Noked,]

Forget Artificial Intelligence, Here’s Artificial Empathy

Mattersight Corporation (NASDAQ:MATR) is an extremely sophisticated data analysis system that listens to the way you respond on the telephone. [Climateer, Money Matters]

Is Your Website Sending the Wrong Message?

The impact of an advisor’s website came up in a question on how to establish credibility with prospects. Here’s the email from Michael, an advisor in northern California. [Dan Richards, Advisor Perspectives]

Is Invesco Losing a Jeff Gundlach or a Peter Lynch?

Some departing fund managers take lucrative client money with them. Others, not so much. Invesco Ltd. (NYSE:IVZ) shareholders appear to assume the worst. [Brendan Conway, Focus on Funds]

Tech Sector Leads the Way with Positive Surprises

It was a strong week for information technology companies, with Yahoo! Inc. (NASDAQ:YHOO), SanDisk Corporation (NASDAQ:SNDK) and Google Inc (NASDAQ:GOOG)  beating earnings estimates. [Greg Harrison, AlphaNow]

How Washington Really Redistributes Income

Stan Druckenmiller makes an unlikely class warrior. He’s a member of the 1%—make that the 0.001%—one of the most successful money managers of all time, and 60 years old to boot. [James Freeman, The Wall Street Journal]

How Many Monkeys Does it Take to Find a Successful Strategy?

Unfortunately for those of us seeking to preserve mathematical rigor in the investment industry, a study conducted by the Cass Business School at City University London seems to confirm the Wobegon Heights effect. [Michael Edesess and Kwok L. Tsui, Advisor Perspectives]

Hottest Links: Not The Onion

Steve Cohen Paid $100K to Become Guy Fieri’s Friend

Embattled hedge-fund billionaire Steven A. Cohen, whose SAC Capital Advisors is charged with insider trading, paid spiky-haired chef Guy Fieri $100,000 “to be his friend for a day,” a new book reveals. [Page Six]

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