Posts filed under “Philosophy”

QOTD: Trading versus Debating

I love this comment from Dynamic Hedges:

“In cable news, debate means two opposing ideologues get equal time to spout bullshit. In trading, opposing views means someone is actually going to be right and someone is actually going to be wrong. Seek out debate and use it to clarify or disprove your thesis. Find people who will challenge your opinions and listen carefully to their arguments. Don’t be afraid to change your mind.”

-10 Tips From the Trenches

That’s the difference between punditry and managing assets — with one, there are tangible results and a scorecard of success or failure; with the other, noise . . .

Category: Apprenticed Investor, Philosophy, Rules

Bloomberg: Best Books of 2012

Bloomberg did an interesting thing with their Best Books of 2012 — they surveyed lots of people, and published all of the suggestions. My book suggestions were wedged between Olli Rehn, European Union Economic and Monetary Affairs Commissioner and Stephen Roach, senior lecturer at Yale University and former chewif economist for Morgan Stanley. I picked: The…Read More

Category: Books, Philosophy

The Dangers of Non-Modeled Narrative Story Tellers

  “He can take a model and turn it into a narrative”   Right after the election, Felix wrote a post “When quants tell stories.” Clever as it was, I had issues with the underlying premise – namely, that the value of Nate Silver’s modeling lay more in the narrative tale as told by Silver…Read More

Category: Investing, Mathematics, Philosophy, Politics, Quantitative, Really, really bad calls

Which One Are You?

via the New Yorker    

Category: Humor, Philosophy, Psychology


Nature’s beauty can be easily missed — but not through Louie Schwartzberg’s lens. His stunning time-lapse photography, accompanied by powerful words from Benedictine monk Brother David Steindl-Rast, serves as a meditation on being grateful for every day

Nature. Beauty. Gratitude

Category: Philosophy, Video

Mauboussin on ‘The Success Equation’

Michael Mauboussin, chief investment strategist at Legg Mason Capital Management Inc., talks about his new book “The Success Equation: Untangling Skill and Luck in Business, Sports, and Investing.” Mauboussin talks with Tom Keene and Sara Eisen on Bloomberg Television’s “Surveillance.”

Viewers should pay close attention to his definition of certainty vs uncertainty and experience vs expertise:

Source: Bloomberg, Nov. 20 2012

Category: Investing, Philosophy, Video

One of the major philosophical takeaways from the past 15 years has been the failures of the Efficient Market Hypothesis and the rise of Behavioral Economics. Consider, as a corollary, the argument assumption that many pro Free Market folks make: Markets are much more effective, efficient and productive than government mandates or regulations. I do not…Read More

Category: Markets, Philosophy, Psychology, Really, really bad calls, Regulation

The Price of ‘Attention Unworthies’ . . . ?

While I was working on my collection of lessons for my WaPo column this week, I ended up finding all manner of interesting, amusing but ultimately unusable items. Some of these were ironic and funny and snarly, but I did not want the column to be “The Schadenfreude Chronicles.”  Rather, I wanted to find real lessons…Read More

Category: Philosophy, Psychology

Lessons from 2012 Presidential Election

I am always on the look out for lessons that I can apply to investing and business. This post-election morning is not any different. Let’s take a look at some of the more interesting aspects of the election season, and try to discern what lessons there are, for investors and others to learn: 1. Process…Read More

Category: Investing, Philosophy, Rules

Bruce Bartlett: Dangers of Republican Know-Nothingism

Bruce Bartlett goes off on some of the denialist behavior from the GOP. Bartlett writes: When a study doesn’t support their dogma, the GOP censors it: Nonpartisan Tax Report Withdrawn After G.O.P. Protest Original study still available here: Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945 (PDF) Bartlett discussed…Read More

Category: Philosophy, Politics, Really, really bad calls