Friday, August 13, 2010

Short Takes: Warren Buffett as Poster Child, Worsening Credit Card US Dollar Exchange Rates, and more

1. Preet thinks that Warren Buffett is not a poster child for active management. I agree that Buffett’s approach doesn’t bear much resemblance to the typical actively-managed mutual fund. However, Buffett is an active manager in the broad sense that he doesn’t own the index. I think Buffett’s approach is the only one that has a hope of consistently outperforming. I don’t have the skill, but it is conceivable that some investors can see that a given company has above-average long-term prospects. This seems more plausible than believing that some people can anticipate short-term moves without inside information.

2. Canadian Capitalist explains changes to credit card agreements that give us worse US dollar exchange rates.

3. Potato wrote an excellent review of Benoit Mandelbrot’s book, The Misbehavior of Markets.

4. Thicken My Wallet explains the latest changes to car insurance in Ontario.

5. Mike at Money Smarts thinks that now is a good time to start leveraged investing. What if it isn’t a good time?

6. Ever wondered how an expensive restaurant menu item can affect you even if you don’t order it? The story of the $69 hot dog explains it. Hat tip to the Stingy Investor for pointing me to this one.

7. Larry MacDonald explains that it has been possible to outperform the market by trading based on Warren Buffet’s 13F filings (the web page with this story has disappeared since the time of writing). In the perverse world of investing, this probably means that it won’t work any more.

8. Big Cajun Man’s Registered Disability Savings Plan (RDSP) saga continues. It seems that bank and government systems are not overly prepared for the RDSP.

9. Ed Rempel explains that there is little correlation between the performance of the economy and the performance of stocks.

10. Canadian Mortgage Trends is tracking efforts to standardize mortgage penalties.

4 comments:

  1. Thanks for the mention, hopefully the RDSP is not a savings only vehicle.

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  2. I agree that Buffett-types can beat the market. But at the same time, there are not too many Buffett-types and it is hard to figure them out ahead of time. For every Buffett, unfortunately, there are a million masquerading as one.

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