skill vs luck for england
I recently read a post by TV personality Jake Humphrey who claimed, when talking about the England national football team, “the truth is that luck and chance plays a massive part in any football match”.
track(ing) error
As we are in an Olympic year, I wanted to talk a bit about my favourite event. The one I could just about manage in school sports day, the 800m.
flashbulb memories
Do you remember watching Baywatch in the 90's?
Can you remember where you left your car keys?
mexican fisherman
An American investment banker was taking a much-needed vacation in a small coastal Mexican village when a small boat with just one fisherman docked. The boat had several large, fresh fish in it.
call options
Over the last few weeks I have had a number of people connect with me and reach out to discuss their career and if I can help with next steps. Although it's quite flattering that people think my opinion is worthwhile (I will always respond and always be honest in my assessment), I thought it might be useful to give some basics of investment/portfolio management as useful content in the spirit of helping shed more light on our (investment community) terminology for aspiring investors.
be patient
I tell my kids all the time: "Be patient", "Patience is a virtue" and "Good things come to those who wait".
what you yielding?
"Yield" was a term originally used by the agricultural industry and would help farmers determine the productivity of their land. In 'olde' English, it meant "to return" or "to pay".
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'.
cycle of market emotions
This past Saturday, I spent 10 hours and 2 minutes hiking, cycling and canoeing around Snowdonia to raise funds for Action Medical Research (JustGiving link below). The event was aptly named 'Race The Sun' and considering we started at 7am, we got in just in time before the Earth rotated away from the giant star in the sky! Success!
jammy dodger?
How many times have you overheard a conversation between two people arguing about whether the outcome of an event was down to luck or skill?
markets change
Markets change and although it may seem at the time that things will persist forever, they don't.
recency bias
As the Premier League season enters the final stages with less than 10 games to go, awards nominations will begin to enter the minds of players, managers and journalists alike.
implied equity risk premium
Implied Equity Risk Premium on S&P 500 is now as skinny as 4.23%, which is the lowest it's been since 2008.
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.
correlation vs causation
🍦🦈 Did you know that data from the US shows the number of ice cream sales per month is correlated strongly to the number of shark attacks per month?
buy low, sell high
The "Buy low, sell high" paradigm in investment is predicated on the ability to "time" the market. Everyone wants to say that they bought a stock at the lows and rode it all the way to the highs before cashing out. Newsflash, it's virtually impossible to do. Also, trying to time the market can be extremely painful for investors.
us domination
Today the US dominates equity markets in terms of market cap and you have to take a view either way if you want to generate excess returns. However, it's not always been the case.
halo effect
⚽ Its heading into the business end of the football season, when champions are crowned, and dreams can turn into nightmares.