Top 5 Reads of the Week | February 13, 2019

Two Cheers for Buybacks
by Spencer Jakab | The Wall Street Journal

“Yes, a booming stock market is boosting inequality. Politicians could address this by raising taxes on both dividends and capital gains or by lifting the minimum wage. By focusing on only one form of how corporate profits are returned, though, they would distort capitalism, not fix it.”

 


Looking for the Intuition Underlying
Multi-Factor Stock Selection

by Cliff Asness | AQR

“Diversification is often called the only free lunch in investing. But, here, perhaps, we see that it has a more subtle cost coming through weaker intuition and harder story-telling (and thus portfolios that are harder to stick to – a prerequisite for any successful strategy).”

 


A.I. Shows Promise Assisting Physicians
by Cade Metz | The New York Times

“Physicians try to be systematic when identifying illness and disease, but bias creeps in. Alternatives are overlooked.”

 

 


Where Big Leaps Happen
by Morgan Housel | The Collaborative Fund

“Being so good at one thing that it’s enough to make you extraordinary is rare. More likely are people who are pretty good at a few things and combine those things to make a big leap into something great.”

 


The Ethical Dilemma Facing
Silicon Valley’s Next Generation
The Ringer

by Victor Luckerson | The Ringer

“The ability to create impact with a few lines of code has long been what separated software engineers from the rest of us, and turned the Valley into a self-proclaimed utopia of young rebels using technology to save the world from its older, antiquated self. But that’s not the image anymore.”