Remove Math Remove Media Remove Numbers
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10 Biggest Ideas in “How NOT to Invest”

The Big Picture

The challenge in writing How NOT to Invest was organizing a large number of ideas, many of which were only loosely connected, into something coherent, understandable, and, most importantly, readable. Media Madness : Do we really need 24/7 financial advice for our investments we wont draw on for decades? Bad Numbers : 4.

Investing 317
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Q&A: Your Money Map

The Big Picture

My organization structure 1: Poor Advice 2: Media Madness 3: Sophistry: The Study of Bad Ideas Or, where bad ideas come from, how they spread, why they fool us. You say we give way too much credit to the media when it comes to accurately covering financial happenings. What are some examples of bad numbers?

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Wednesday links: narrative fallacies

Abnormal Returns

Strategy On the strange math of stock returns. sherwood.news) The number of existing homes for sales keeps rising. newsletter.abnormalreturns.com) Mixed media Why Cards Against Humanity is suing SpaceX. fortunesandfrictions.com) Betting on smart beta has generally not worked out well for investors. platformer.news)

Math 267
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Why Hasn’t the California Globe Retracted Its Story?

The Big Picture

The Globe, amazingly, cannot even sum a column of five small numbers. Newsom and his staff including Brandon, are picking numbers and months to serve Newsom’s own false narrative. It was the Journal, then Hoover, then CABIA, that did all of the cherry-picking, and used a bad set of numbers to do it. That’s not even math.

Food 338
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TikTokInvestors

The Big Picture

At least one person1 has noticed the risks to young consumers of social media: Since August 2020, @TikTokInvestors has been curating the most outrageous money-losing and dangerous videos culled from the “financial experts” at TikTok. 2 Sure, you can claim mainstream media is bad, but social media is worse.

Media 336
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Avoid the Unforced Investment Errors Even Billionaires Make

The Big Picture

You see this all the time: After a huge run of spectacular gains, the media fetes a manager, and buyers pour in late. These two possibilities a 10-fold increase versus a 90% drop are roughly symmetrical in terms of math (but probably not probabilities). This was just before an 81% collapse that bottomed in December 2023.

Investing 267
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My New ETF: 100% of Upside + 0% of Downside

The Big Picture

At least, if you are a smart investor who does the right things: Set up a financial plan, manage your own behavior, engage in long-term thinking, and avoid reacting to the endless daily noise that markets + media generate. The performance numbers reveal this is a terrible trade-off for the average retail investor.