Looking at the current market scenario and the past these are very common lines from the sales team of the various
Financial firms and let’s try to observe what is the reality behind those statements :-
Statement: As a Leading dealer with a global platform, we are the major player in the market.
Translation: We have spent a fortune to build this business and are now prepared to spend millions more subsidizing your requirements.
Statement: We have one of the most talented teams in this space.
Translation: Our staff are vastly overpaid and on huge guaranteed bonuses. View full article »
Every time I read Traders Guns and money there are new things to explore.
The management of the firms is a succession of fads during trouble times, just like the recent and ongoing crisis. The Fads become a mixture of homely common Rusk package as science and in comprehensible.
||Lets do several things that we don’t know anything about badly
|Sticking to the knitting or focus
||Lets get back to doing what we once did if any body can remember what it is and how to do it J
||Massive duplication, confusion and creation of thousand of petty empires
||Every body reports to every body, no body knows who they work for & there is no accountability
||Managers who can not manage now manage tens of direct reports.
|Business Process reorganization
||A process by which cut everything that is essential, leaving only every thing that you don’t need.
Not to forget lot of buzz words like CRM/KPI/TQM/B2B/B2C/Transformation/best of breed/competitive advantage/reinvention/templates.
Was thought of sharing this a long back but skipped from my mind . Markets provides lot of learning opportunities and if it is presented in the form of a movie it is more easy to remember. I am sharing some of the best movies that I saw and some quotes :
Most Corrupt Movie About Finance: Enron, The Smartest Guys In The Room
Best Line: ’I would like to know if you are on crack, if so that would explain a lot. If not, you may want to start because it’s going to be a long time before we trust you again.’
Most under-rated Vin Diesl Movie About The Stock Market: Boiler Room
Best line: Seth: What do you mean, you’re gonna pass? Alan, the only people making money passing are NFL quarterbacks and I don’t see a number on your back. View full article »
My question is about arbitrage (tenders and merger arb). I’ve been reading through Buffett’s old letters and in the late 1980’s he had quite an impressive run with his arbitrage investments (I think in 1987 he made around 80% on his arb investments).
Both he and Graham seem to have had long time success for decades using merger arb and other arbitrage techniques. I’m wondering if you ever employ any of these strategies in your portfolio? It seems like a specialized area, but also seems like an area that would add uncorrelated returns to the portfolio, and serve as a great substitute for cash when markets begin to become overvalued. View full article »
Trading has changed over the years with new technology , risk assements and regulatory developments . Its been that I am running through various series of investments and trading . Here is another one from Todd Harrison of Minyanville who is a very savvy investor and knowledgeable guy – His 10 commandments
- Respect the price action, but never defer to it. Our eyes are valuable tools when trading, but if we deferred to the flickering ticks, stocks would be “better” up and “worse” down, and that’s a losing proposition. View full article »
Was glancing through few blogs and found interesting to share why investors lie to themselves written by Barry Ritholtz in his Sunday column.
From the Big chill of 1983
Michael: I don’t know anyone who could get through the day without two or three juicy rationalizations. They’re more important than sex.
Sam: Ah, come on. Nothing’s more important than sex.
Michael: Oh yeah? Ever gone a week without a rationalization?
Self-deception is especially costly when it comes to investing. So let’s consider some of the lies that a lot of you may be telling yourselves and the impact they may have on your portfolios. View full article »