The Stingy News Weekly: 03/12/2019
What is the heck is going on
"The striking parallels between commerce, education, and politics isn't a coincidence. In fact, it's inevitable. In the past decade, the information environment has inverted from information scarcity to information abundance, and the effects are evident in every corner of society." [World]
How hedge funds get rich
"However, what if I told you that in less than 20 years the hedge fund would have more money than you (regardless of the size of your initial investment)." [Funds]
A leader in tax compliance
"Then there's Greece, where economists have struggled to even calculate a VCR. According to the International Monetary Fund, more than half of Greek households pay zero income tax. Indeed, tax evasion is practically a national sport. Take the swimming-pool trick. After the 2008 recession, the government placed a luxury tax on private pools. When only 324 residents in the ritzy suburbs of Athens admitted to having one, tax collectors knew they were being swindled - but didn't know how badly until Google Earth photos revealed the real pool count: 16,974. It's now common to conceal chlorinated assets with floating tiles, army nets, and pool interiors painted to mimic grass." [Taxes]
Building a trading wall
"Look, obviously the move here is to build the hotel, no? Why shouldn't Aurora have a 40-story hotel in the middle of a field? With no windows? And made out of lead? Then just put your tower on the other side of it. Building your own tower is good, sure, but again you can get most of the same benefits just by blocking theirs." [Fun]
Growth at a reasonable price works
"Our results suggest a GARP approach can generate enviable results, although how enviable depends on the observation period. Perhaps the strategy's key benefit is forcing investors to adopt a systematic framework so they can allocate to exciting growth stories - the rising Amazons - albeit only when they are trading at reasonable valuations." [Value Investing]
"A miserable event with no offset, no silver lining, is when the economy stalls and asset prices fall, and because the economy stalls you lose your job, and because you lose your job you have to sell assets at low prices, all because you didn't have enough cash." [Behaviour]
Guy Gottfried at Ivey
"Ivey Business School's Value Investing Program of 2019 welcomed Guy Gottfried as a Guest Speaker." [video] [Value Investing]
Decode the following investing quip, which has been encrypted with a substitution cipher. (Punctuation and spaces are unchanged.) Start with a clue: S is N
BA MANRLSOVAZ AWMET RS FUWF CAMT QPWMF JARJEA ZR CAMT ZIPH FUOSLQ, WSZ BA BWSFAZ FR DSRB BUT WSZ BUR, QR FUWF BA NRIEZ WCROZ FUAP.
The answer to last week's cryptogram is:
"Everywhere there's a large commission, there's a high probability of a rip-off."
S&P/TSX60 Value Screens
DOW 30 Value Screens
|Disclaimers: Consult with a qualified investment adviser before trading. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, financial advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. More...