Weekend Reading for 2/24/2017
Invisible Alpha Blog
Buffett A Victim of His Own Success
Warren Buffett’s investing prowess has slowly become a victim of its own success. 2016 marked the first time in history that the rolling 15-year returns of Berkshire Hathaway fell below those of the S&P 500 (8.41% vs 8.48%). Since the peak in 1989, the spread between 15-year returns of Berkshire and the rest of the market has continually narrowed.
Chart of the Week
It’s ok if you don’t have a grand plan for life. As long as you’re still alive, you have a chance!
(Lost in Life – Funders and Founders)
3 Good Reads
6 Ideas for Creating Good Incentives (Mike Dariano)
“Incentives are unique and variability and that means one-size-fits-all solutions are difficult (or impossible). Finding good incentives isn’t easy, but this is a solvable problem. “
Potential Return-Free Risk of Bonds (@EconomPic)
“My takeaway… if you think rates are poised to rise in the future… think twice about owning them. While the risk-free return of cash is hard to accept at current levels, that return may end up being more attractive than the return-free risk of bonds if rates do rise.”
I Don’t Know, and I Don’t Care (Jason Zweig)
“With an index fund, you’re on permanent auto-pilot: you will always get what the market is willing to give, no more and no less. By enabling me to say “I don’t know, and I don’t care,” my index fund has liberated me from the feeling that I need to forecast what the market is about to do. That gives me more time and mental energy for the important things in life, like playing with my kids and working in my garden.”
Enjoy your weekend!