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10 Tuesday AM Reads

The Big Picture

My Two-for-Tuesday morning train WFH reads: • Stock Pickers Never Had a Chance Against Hard Math of the Market : In years like this one, when just a few big companies outperform, it’s hard to assemble a winning portfolio. economy is doing well, why do so many Americans say it’s terrible? 2007-09 Great Financial Crisis 7.

Insurance 130
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Finally, a Stock Market Crash!

Mr. Money Mustache

And just to amplify everything even further, China has launched a batshit crazy (and medically impossible) “zero covid” policy, locking down hundreds of millions of its own people who can no longer produce or export the things that the rest of the world’s economy had grown to rely upon. the current blowup) -20% so far What’s your guess?

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Transcript: Tom Hancock, GMO

The Big Picture

I’d say management consulting is any of the other thing that least at that time was the other career trajectory, just my personality, more of a math oriented introvert. 00:21:26 [Speaker Changed] In isolation quality on average gives you downside protection, certainly did in 2007, eight for example. Learn math, learn history.

Valuation 130
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Transcript: Anat Admati

The Big Picture

ANAT ADMATI, PROFESSOR OF FIANCE AND ECONOMICS, STANFORD GRADUATE SCHOOL OF BUSINESS: So, my journey starts where I took a lot of math. I was good in math and I love the math. So, I was kind of, in my romantic mind when I was in my early 20s, I was going to take but not give back to math, that kind of thing.

Banking 195
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Transcript: Graeme Forster, Orbis Investments

The Big Picture

So I, I did a math degree at Oxford, which is more pure math. You know, pure math can be very theoretical and detached from the real world, and it’s getting worse. It’s just math stick to it over long periods of time. You joined in 2007, what led you there? It gets further and further away the D P U go.

Investing 130
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Transcript: Kristen Bitterly Michell

The Big Picture

I — I loved math, but really, I was going to go down that literature route more than anything else and — and study Spanish literature. At Citi, in 2007, fantastic timing, you take over as Head of Structured Solutions. And so, 2007, I came over to Citi. RITHOLTZ: Applied Mathematics, Quants, those guys, yeah.

Clients 286
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The Scapegoat

The Irrelevant Investor

The Atlantic asks Are Stock Buybacks Starving the Economy ? These sort of numbers will always grind higher as the economy grows over time. Tech companies, the companies making the most money and conducting huge buybacks are in fact spending 18% of their revenue on R&D and Cap-ex, up from 13% in 2007.