Posts filed under “Apprenticed Investor”
My Sunday Washington Post Business Section column is out. This morning, we look at “noise” levels, and what you can do to reduce them.
Here’s an excerpt from the column, that asks: Do these inputs add to signal or to noise?
• News: Most of it is actually old. By the time information hits the papers, it’s pretty much already in the stock price.
• TMI: Too much information can lead to the paradox of overconfidence and bad investment decisions.
• Anecdotes: A good narrative is more compelling than statistical data, but the data are more determinative of future returns.
• Talking heads: Your goal is to safely grow your assets — but what are the goals of those you see on TV? What’s their agenda?
• Short-term goals: How much of your information consumption is short-term, meaningless noise?”
I also expand on our earlier post of looking at what it would be like if we purposefully tried to get more noise in our daily media diet.
Reduce the noise levels in your investment process
Washington Post, November 32013
Category: Apprenticed Investor
How Shiller helped Fama win the Nobel Barry Ritholtz, Washington Post October 20 2013 At the University of Chicago, there are two professors of economics named Eugene Fama. The first — let’s call him Fama the Younger — started in the 1960s. He developed a profound insight about the markets. This Fama observed that…Read More
My Sunday Washington Post Business Section column is out. This morning, I look at how Eugene Fama’s early insights were nearly eclipsed by his latter bad theories. Not to give away the ending, but if it weren’t for Robert Shiller’s criticism, Fama may very well not have won. Here’s an excerpt from the…Read More
I am working on this week’s WaPo column, based loosely on last week’s open thread on the value of the Financial Media. I have a 23 bullet points I am trying to cut down to a dozen or less. Here are two: Too Much Noise, Too Little Signal: The biggest problem most investors encounter is…Read More
On Investing: The Obamacare portfolio By Barry Ritholtz, October 6, 10:11 AM Investors are best off when they leave their party affiliation and partisan views behind. I’ve said it before: “Washington, I’m here to tell you, politics and investing don’t mix. Your politics are killing you in the markets.” Keeping your emotions…Read More
> My Sunday Washington Post Business Section column is out. This morning, we look objectively at Obamacare — not the politics of it, but the investing aspect. Its called: On Investing: The Obamacare portfolio. My conclusion? If you were an objective observer of the legislation when it passed, and then again when the Supreme…Read More
Its Philosophy Friday, and I want to discuss in broad terms the same interesting conversation that keeps coming up: Over the past few weeks, I keep getting that question: Whats your forecast for the economy? Where will interest rates be at the end of the year? Are Jobs going to improve? And of course, the big…Read More
> My Sunday Washington Post Business Section column is out. This morning, we look at the role of Lehman Brothers within the broader collapse, Lehman’s thud signaled an enduring trauma. It didn’t cause it. As we have noted many times before, Lehman fell due to the same factors that drove Bear, Citi, AIG,…Read More