#WeeklyInvestorReader | wk. 51

Note to readers: #WeeklyInvestorReader contains a few of the articles I read during the week. Visit my Twitter @HurriCap for any other articles that may not have been included. 

Move Over Small Dogs Of The Dow, Here Come The Uber Cannibals – Forbes, December 22, 2016 | About cash-rich, undervalued businesses that are consistently buying back shares, thereby generating tremendous value for shareholders.

What’s So Significant About Significance? – Farnam Street, August 11, 2016 | The phrase “statistically significant” is one of the more unfortunately misleading ones of our time. The word significant in the statistical sense — meaning distinguishable from random chance — does not carry the same meaning in common parlance, in which we mean distinguishable from something that does not matterWe’ll get to what that means.

Sweden Heads The Best Countries For Business For 2017 – Fortune, December 21, 2016 | One country headed in the opposite direction is Sweden, which moves up four spots to the top of the charts for the first time (Sweden ranked No. 17 in 2006). Over the past two decades the country has undergone a transformation built on deregulation and budget self-restraint with cuts to Sweden’s welfare state.

Your social media addiction is giving you depression – New York Post, December 22, 2016 | The study found that people who use anywhere from seven to 10 social-media platforms are three times more likely to be depressed or anxious, compared to those using no more than two. Those who reported such symptoms were overwhelmed by the multitasking needed to manage their profiles — and the more profiles they had, the more the pressure added up. Though it’s on the high end, maintaining seven social-media profiles is possible with the bevy of options available to users today.

What I learned about Exxon CEO Rex Tillerson after spending a week on jury duty with him – Dallas News, December 23, 2016 | One of our first tasks was to choose our jury foreman. Perhaps it was his business suit, his impressive stature, or his charisma, but almost everyone in that jury room suggested that this middle-aged man with graying hair was likely the most fit for the task. Thanks, but I decline. I’m not interested in the spotlight, he told us. I didn’t think anything of it.

Nike Stock Increasingly Becomes A Long-Term Buy – The Conservative Income Investor, December 19, 2016 | Rather than fixate on price, I recommend that investors actually look at what the business itself is doing. In the case of Nike, it is doing what it nearly always does. And that is, deliver double-digit annual per share earnings growth to shareholders. It made $1.85 per share in profits last year. It is going to make around $2.15 per share in profits this year. That is annual earnings per share growth of 16%.

A new industry has sprung up selling “indoor-location” services to retailers – The Economist, December 24, 2016 | There is money to be made in tracking shoppers’ paths inside stores.

The Pot-Belly of Ignorance – Farnam Street, October 4, 2016 | What you eat makes a huge difference in how optimally your body operates. And what you spend time reading and learning equally affects how effectively your mind operates. Increasingly, we’re filling our heads with soundbites, the mental equivalent of junk. Over a day or even a week, the changes, like those to our belly, are barely noticeable. However, if we extend the timeline to months and years, we face a worrying reality and may find ourselves looking down at the pot-belly of ignorance.

JACK BOGLE: ‘Main Street hasn’t been taking its fair share’ – Business Insider, December 21, 2016 | “Main Street hasn’t been taking its fair share.” That’s according to Jack Bogle, the founder of the $3.5 trillion fund behemoth Vanguard.

The World’s Largest Hedge Fund Is Building an Algorithmic Model From its Employees’ Brains – Wall Street Journal, December 22, 2016 | Bridgewater wants day-to-day management—hiring, firing, decision-making—to be guided by software that doles out instructions.

Jamie Dimon on Trump, Taxes, and a U.S. Renaissance – Bloomberg, December 14, 2016 | The CEO of JPMorgan Chase talks about Detroit’s revival and his views on the incoming administration.

Inside Amazon’s clickworker platform: How half a million people are being paid pennies to train AI – TechRepublic, December 14, 2016 | Internet platforms like Amazon Mechanical Turk let companies break jobs into smaller tasks and offer them to people across the globe. But, do they democratize work or exploit the disempowered?

The Most Informative Posts on Important Financial Topics – Fortune Financial, December 10, 2016 | The financial blogosphere has become a tremendous resource for anyone who has an interest in investing.  The information available is close to infinite, and much of it is free.  Being a beneficiary of this resource, I have long felt that the major improvement to be made would be an index of sorts, in which the best posts were categorized by topic.  Unfortunately, that is a herculean task, so I am going to attempt what i consider to be the next best thing:  a decent-sized selection of the posts from 2016 that I have found to be the most useful in both my practice as a financial advisor, and in my avocation as an investor.

Nate Silver Interviews Michael Lewis About His New Book, ‘The Undoing Project’ – Atlas Obscura, December 14, 2016 | This week on Sparks, FiveThirtyEight’s monthly science podcast that runs in the What’s The Point feed, our science roundtable discussed Michael Lewis’s new book “The Undoing Project,” about two Israeli psychologists who created the field of behavioral economics. After that discussion, FiveThirtyEight editor-in-chief Nate Silver spoke with Lewis about the book, what it has to say about the 2016 U.S. election and Lewis’s writing process. You can listen to that interview above, watch a segment of the interview below, or read an abridged, lightly edited transcript below the video.

Article in Swedish

Portföljarkeologi – Lundaluppen, 25 December, 2016 | Om man liksom jag tycker att Twitter är ett trevligt tidsfördriv så får man vara beredd på att skåda en flod av portföljrapporter med årlig avkastning på 50 % eller mer (långt mer) så här års. Individer med lägre avkastning än så skriver hellre blogginlägg så de kan komma med lite mer utförliga ursäkter… Om du, liksom jag, fått väsentligt lägre avkastning än dessa stjärnor och dessutom äger ett visst mått av självkritik så inställer sig förmodligen följande frågor: (1) vad håller jag på med? och (2) vad vet dessa människor som inte jag vet?


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