Category: Best Of
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Allan Mecham and Arlington Value: Invaluable Lessons on Value Investing
There aren’t many investors compounding capital at double digits over the course of decades and those that do are already well known (i.e., that guy from Omaha). However, in a small office above a taco shop, there’s a man running a hedge fund called Arlington Value who has demonstrated the advantage in simplicity, long-term thinking,…
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Linda Bradford Raschke’s Trading Strategy Explained
In the following piece we’ll break down Linda Bradford Raschke’s trading strategy along with the tools she uses to consistently beat the stock market year after year. I realize that I’m only human, and that I’ll always make mistakes. I just try to make them less frequently, recognize them faster, and correct them immediately! We…
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Emergent Properties of the Market Collective
One of the coolest things to watch in nature is a Starling murmuration. If you’ve never seen one before then give this video a watch. Starlings — which are small and not particularly intelligent birds — are somehow able to form these amazingly complex and beautiful airborne systems that are capable of extremely intricate flight…
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The Chandler Brothers: The Greatest Investors You’ve Never Heard of
Two secretive brothers from New Zealand have perhaps the best long-term track record in the investing world. Starting in 1986, the two turned $10 million of family money into over $5 billion just 20 years later. That’s an astounding 36% CAGR. Compare that with Buffett (19% over 50yrs), Klarman (20% over 34yrs), Lynch (29% over…
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My Notes on the Druckenmiller Real Vision Interview
Alex here. The Druckenmiller Real Vision interview is well worth the watch if you have a subscription and 90 minutes to spare. And if you don’t, you’re in luck because I’m sharing with you my notes along with some of my thoughts on what the GOAT said. Let’s begin… The start of the interview was…
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The Psychology Behind Managing A 20 Bagger…
What do you do with a massively profitable trade that has grown to become a large percentage of your total portfolio value? This question has been circulating in the Macro Ops Collective chat room the last few weeks because one of our deep out of the money (DOTM) calls took off in a big way.…
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Why Emerging Markets Are A Dead Money Trade
In our most recent MIR we talked briefly about the growth struggles of EM in the context of the Gerschenkron Growth model, using China as our example. Our conclusion was that China, and EM in general, is set to be a dead money trade and massive value trap for the remainder of this cycle. So…
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The Human Trader’s Secret Weapon
Choosing individual stocks without any idea of what you’re looking for is like running through a dynamite factory with a burning match. You may live, but you’re still an idiot. ~ Joel Greenblatt Investing is hard. It’s a game of relative comparisons. We have limited capital and nearly unlimited opportunities to deploy it. Our job…
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The Principle of Bubble Rotation
In the book Business cycles: history, theory and investment reality, the author Lars Tvede talks briefly about a cycle phenomenon he calls The Principle of Bubble Rotation. He writes: There is one further common aspect of all these asset classes. We have seen that business cycles from time to time create monetary environments that are…
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Probabilities Not Predictions
Markets are context dependent, their behavior is a function of the particular circumstances that exist and how those circumstances are expected to or do change. The trick is not to predict an unknowable future, but to try to understand the present and the probabilities of the various paths that may evolve from it. ~ Bill…