If Dating Was Like Investing…5/5(1)


A friend of mine recently shared this amusing article from Elite Daily.  The author compares dating to investing where in every relationship someone is always the Investor and their partner the Stock.  Within each there are various personality types…

Types of Investors

Average Investor:

Plays the field decently; believes that playing the field is the best strategy to spread his/her risk before settling down with the Stock that returns most consistently over time. This is one of the more well-rounded Investors. Most likely to pursue, fall in love with and end up with S&P 500s and Solid Stocks.

Savvy Investor:

Savvy Investors (think) they know all the tricks and plays in the book. They are more knowledgeable about the market than any of the Investors. Behavior is 99.9 percent strategy and 0.1 percent emotion. All moves are premeditated. Most likely to pursue Penny Stocks and Game Changers. Most likely to fall in love accidentally with Underrated Stocks or High Risks. Most likely to end up with Solid Stocks.

Angel Investors:

Angel Investors are the most detached from the market than any other Investor, always keeping their heads above the melee. They invest in Stocks based on how closely they identify with their cause. Angel Investors are the most discreet about their wealth, but also the most gracious. They are scarce due to lower participation in the market. Angel Investors don’t have a reputation for pursuing, ending up with or falling for any particular kind of stock, but never invest in Dumb Risks or Metal Scrap.

Follow the link below to read more…

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Unemployment…No rating results yet


The unemployment numbers came out today and the US unemployment rate has dropped to 5.6%.  This is the lowest reading since 2008 and while many financial pundits will have their own spin on the number…it’s a good reading.  Having said that, we must remember that economic statistics, indices and most measurements have been changed so many times over the years that today’s 5.6% is not the same thing as a 5.6% in 1980 (for example).  I personally love to negate these numbers as much as the next person but hard to argue that a drop in the unemployment rate is anything but a good thing.  One thing I would point out is that with this drop, we’re also seeing a sharp drop in labor force participation.  This negative change is definitely not a good thing.  Two charts showing this below…first one is the unemployment rate and second one is the labor participation.

Unemployment Rate…

unemployment rate

Labor Participation Rate…

labor participation rate

In case you’re wondering why the participation rate picked up in the 1970’s and 80’s…it’s women entering the workforce…among other additions.

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3G Capital…No rating results yet


Brazilian private-equity firm 3G Capital Partners was unknown to the average investor before they teamed up with Warren Buffett to purchase Heinz.  The firm is notoriously publicity shy and not much is known of it’s inner workings which is why I was excited to see today’s WSJ article about the firm.  That article can be read HERE.

One interesting tidbit I learned was about it’s sources of capital…

“3G is considered a private-equity firm but doesn’t raise money the same way most of them do. Rather than getting a huge pot of money from a large number of investors, the 75-year-old Mr. Lemann and his partners, Carlos Alberto “Beto” Sicupira and Marcel Herrmann Telles, turn to roughly three dozen of the world’s wealthiest families and individuals.

In addition to Mr. Buffett, recent investors include hedge-fund manager William Ackman , members of Colombia’s Santo Domingo family, seven-time Wimbledon men’s champion Roger Federer of Switzerland and JAB Holdings, which manages assets for Germany’s Reimann family, according to people familiar with 3G’s operations.”

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Financial Advisors…No rating results yet


People have many opinions of Financial Advisors…some folks think their value is minimal while others fine their advice and guidance indispensable. Whatever your view is, there’s a nice article in the WSJ regarding the various types of advisor and how to fine one who suites your needs.  That WSJ article is HERE.

What to Ask an Advisor

What to Ask an Advisor

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Asset Managers Are From Mars, Asset Owners Are From VenusNo rating results yet


Great read from Research Affiliates on the promise of smart beta.  I’ve been in finance for the last 10-years and I have no clue what exactly “smart beta” means.  What we do know is this quote is one to be remembered:

“So, for the record, let’s say it loud and clear: Investment management is a for-profit enterprise. As such, asset managers and asset owners have a relationship beset with natural conflicts.
Asset owners want fees below 10 bps; asset managers prefer “2% + 20%.”1 Asset owners want transparency; asset managers favor black-box opacity. Asset owners want simplicity; asset managers hire rocket scientists to create complex optimized solutions for sex appeal.2 Asset owners want “future” outperformance after they fund a manager; asset managers would be satisfied with strong past outperformance to facilitate future asset gathering. Asset owners want a bigger alpha; asset managers would happily sell them the possibility of alpha and charge handsomely for the service of selling hope. “

 

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Oil WisdomNo rating results yet


FiveThirtyEight has an interesting article showing how the conventional wisdom on oil is always wrong.  Check it out here:  http://fivethirtyeight.com/features/the-conventional-wisdom-on-oil-is-always-wrong/

There is a common saying among strategists that when it comes to oil prices “No one knows nothing”.  Not sure who coined the term but I first heard it from Mike Goldstein at Empirical Research Partners.  When I was on the buy-side he was one of my favorite strategists and worth a listen.

If you showed this chart to anyone in 2007, I am pretty sure you would have been laughed out of the room…

casselman-datalab-oil-2

 

 

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Rat Traders5/5(1)


Check out http://www.rattraders.com

From the website:

Our program is a professional service to the financial industry; rats are being trained to become superior traders in the financial markets. Using our own methodology in accordance with well-established animal training techniques, our subjects learn to recognize pattens in historical stock and futures data as well as generating trading signals. We provide solutions for tick based trading data and day based data. RATTRADERS rats can be trained exclusively for any financial market segment. They outperform most human traders and represent a much more economic solution for your trading desk.

All that’s left for them to do is come up with a fancy name like Boca Raton Trust Company and launch some mutual funds or even better, some liquid alt strategy.  Boom!  Billionaire rats over night!

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Meeting at a barNo rating results yet


So, last week I’m at my favorite pub in town (across from the office) and I see a colleague from work hanging out with her friend. After awhile, her friend leaves and she comes over to say hello. She offers to buy me a beer and after about twenty minutes or so of light conversation she whispers in my ear that she’s had a crush on me for several years. I’m married and she’s married, so….what am I supposed to do with that?

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Off-Site5/5(1)


I worked at a firm that had opened up a separate office a few steps away from the main campus to prevent “group think”.  Place turned out to be one giant brothel with PM’s and analysts having free reign to do whatever they wanted.  Got so bad that a wife of one of the main PM’s had to call the firm’s CIO and request that her husband’s admin be fired or relocated.  Couldn’t make this stuff up…

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Banging the asst.5/5(1)


How many top executives at major investment firms you think are doing their assistant? I know of at least one. The asst. in question also admitted to my female colleague that she had been with over 100 guys in her life. And yes, she did have VD. She actually hit on me once too. Hot chick but I don’t sh*t where I eat.

But, I also know my direct boss was banging his boss’s (SVP) asst. in the stairwell after hours. Both were married at the time. She used to wear fishnet stockings to work. Should have been a giveaway that she was easy. How do I know this to be true? He admitted it to me over drinks one night.

What a firm! Unfortunately, no longer work there.

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