Curated reads for December 12, 2020
‘There are as many speculators as there are people, and that there will always be buyers who will free you from anxiety… The expectation of an event creates a much deeper impression upon the exchange than the event itself. When large dividends or rich imports are expected, shares will rise in price… bulls are optimistic with joy over the state of business affairs, which is steadily favorable to them; and their attitude is so full of [unthinking] confidence that even less favorable news does not impress them and causes no anxiety’ – Joseph de la Vega Confusion de Confusiones, written over 300 years ago and considered to be the first book about a stock exchange, the author’s view of behavioural bias is uncannily accurate even to this day. Especially when stock prices go up, and continue to go up, defying Newton’s law of gravity. We thus explore the momentum factor as a means of an investment strategy and how it defies efficient market hypothesis Read more
‘The business grapevine is a remarkable thing. It is amazing what an accurate picture of the relative points of strength and weakness of each company in an industry can be obtained from a representative cross-section of the opinions of those who in one way or another are concerned with any particular company’ – Phil Fisher Scuttlebutt was popularised by Philip Fisher, an early pioneer of modern investment techniques who wrote in the 1950s about the importance of gathering information from all possible sources in a seminal book on investment analysis, Common Stocks and Uncommon Profits. In this excerpt, Warren Buffett explains the importance of scuttlebutt to his investing process and why he recommends it for every investor. Read more
DID YOU KNOW?
Meeting the goal of net carbon zero by 2050 will require breakthroughs and innovations in chemistry, physics and materials science, as well as advances in carbon capture, hydrogen fuel, digitization, manufacturing, artificial intelligence, robotics, software, data analytics and other technologies. We take a look at its impact on the oil industry and how it will modify global geopolitics Read more
Each year, Google releases its annual "Year in Search" list featuring the year's top trending searches, which had a high spike in traffic over a sustained period in 2020. Here’s a look at the year gone by Read more