Standing on the Shoulders of Giants
The Hollies sued Radiohead for their top 10 hit 'Creep' due to the melody and chord progression being too similar to their 1972 song 'The Air That I Breathe'. Radiohead settled and gave an out-of-court settlements to writers Albert Hammond and Mike Hazlewood (The Hollies).
90% of Active Managers underperform
New study by S&P shows about 90% of fund managers in the active equity sector underperform their benchmark.
illusion of understanding
"The confidence people have in their beliefs is not a measure of the quality of evidence but of the coherence of the story the mind has managed to construct" - Daniel Kahneman 'Thinking, Fast and Slow'.
ergodicity
Just finished 'Skin in the Game' by the excellent Nassim Nicholas Taleb. The book ends with the most important chapter on Ergodicity and the concept of systems being 'ergodic' or 'non-ergodic'.
Finance 101 - Compounding
We have all been inundated over time with the message on the power of compounding. Effectively making your money work for you over time by earning returns on your principal and the accumulated income. This creates a snowball effect and allows your money to grow.