Must Reads of the Week – October 31, 2018

Must Reads of the Week

Our favorite reads of the week and the quotes that make them worthy…

For investors, too, figuring out what other people are likely to do, and then persisting in doing the opposite, is the best way to come out ahead in the long run.”
What Investors Can Learn From Gamblers by Jason Zweig | The Wall Street Journal


“This is why you have no competition. Because you are only competing against your own behavior, your own biases, and your own habits.”
You Have No Competition by Nick Maggiulli | Of Dollars and Data


“Imagine showing up at a World Series game at Fenway Park and having the usher tell you the Red Sox gave your seat to someone else.”
If Only Airline Tickets Were Like Sports Tickets by Scott McCartney | The Wall Street Journal


“The investor base, from what I saw, is overly focused on relative returns and looking for the perceived safety and comforts of size, past performance, and strong risk management.”
Have Institutional Investors Spoiled the Hedge Fund Party? by David Finstad | Institutional Investor


“The past is easy because we know what happened but the future is messy since the uncertainty of the potential outcomes cannot be reduced.”
When Stocks Fell 10%… by Ben Carlson, CFA | A Wealth of Common Sense


“As the stock market has taken a dive in October, exchange-traded funds built around low-volatility and dividend strategies are proving to be a relative safe harbor in the storm.”
Low-Volatility, Dividend ETFs Proving Their Mettle in Stock Swoon by Tom Lauricella | Morningstar


“The first casualty of crisis is good sense, as I mistake my panic response for instinct, and almost every action that I feel the urge to take in the heat of the moment is driven by fear and greed, not reason.”
An October Surprise? Making Sense of the Market Mayhem! by Aswath Damodaran | Musings on Markets


“To be clear, research suggests that larger, older funds tend to underperform, but maybe part of this diseconomy of scale is not merely the challenge of squeezing more dollars into a limited alpha pool. Perhaps there is another related factor that is not as well researched — namely team size.”
Do Alternative Asset Managers Have a Tipping Point? by Chris Schelling | Institutional Investor


“More people have started becoming aware that AI could have different ethical consequences on different groups of people. The fact that we see people engaged with this—I think that that’s something promising.”
Should a self-driving car kill the baby or the grandma? Depends on where you’re from by Karen Hao | MIT Technology Review