Friday Finds
The Internet is full of interesting and useful information. The problem these days is finding it.
Our newsletter mission is to provide tools for enhancing fundamental equity research, so every Friday, I share articles related to how to become a better investor.
Below is the continually growing archive that is updated every Friday.
Conviction: Types of conviction and why, sometimes, it could be the greatest source of alpha. Hint: companies with a soul.
Thinking In Probabilities: An interesting follow-up article to Annie Duke’s Thinking in Bets. Look for the cone of potential.
Seven Ways to Look at Stock-Based Compensation & Dilution: seven methodologies to analyze SBC, each one with pros and cons.
Fundamentals: Debt That Isn't Debt: an overview of non-debt liabilities and why it matters when it matters.
The Research-Backed Benefits of Daily Rituals: examples of rituals and how to use them to be more effective, by HBR.
The Sources of Underperformance: conforming to the crowd ensures reversion to the mean and a critique of group thinking.
Poor Charlie's Almanack: a useful review of Poor Charlie’s new edition.
Investing Early in a Transcendent Company: investing in transcendent companies and why they offer greater upside potential and lower risk.
How to Lie With Charts: a follow-up on How to Lie With Statistics by Darrell Huff, by Ben Carlson.
On Talent: a brilliant article that explores the balance between natural talent and hard work.
Accelerating Wisdom" Episode 1: How to Accelerate Expertise: how to build expertise, fast.
Investment Beliefs: an investor’s list of 15 investment beliefs.
Danny Kahneman’s Best Idea: a short article on prospect theory.
Are You Prepared?: Ian Cassel on experience and the conviction to hold.
Surprised Again: a rational approach to decision making avoiding predictions.
The 80% Solution: a critique to perfectionism.
An Investor Checklist for Dealing with Geopolitical Risk: a framework to dealing with geopolitical events and its influence in the your investments.
Risk Seeking vs. Mitigating: John Rahm and Scottie Scheffler, an essay on risk-seeking vs risk-mitigating.
Investment Process Part I: on sources for idea generation.
Investment Process Part II: on how and why to avoid investing FOMO.
Fundamentals: A Deep Dive On Stock-Based Compensation: a long-read on SBC and the Musk example.
The American Millennium: why America is on the rise by Packy McCormick.
The Value of Patience: daily investor’s biases: an article on self-reflection, patience, and a long-term view.
The Curious Case of Catalysts: catalysts and their role in long term investing.
10 Years From Now: thinking in terms of baselines for the long term.
Tempering FOMO and regret through diversification: how can diversification reduce investment risk and emotional turmoil.
Charlie Munger and How Not to Invest: To fail at investing, be impatient, ignorant, trend-following, hyperactive, and loss-averse.
Clickbait vs. Reality: Ignore doomsday forecasts, focus on resilient investments and prepare for inevitable market downturns.
Big Tech Capex and Earnings Quality: how big tech's rising capex and valuations may hinder future returns, making them less attractive.
Control Yourself: managing expectations for microcap companies by focusing on long-term potential and avoiding short-term disappointments.
How Misinformation Exploits Our Biases: Annie Duke on how misinformation preys on biases, making even smart people susceptible to accepting false claims.
Can Forget Help Us Remember?: The article explores how memory is not just a passive record of the past, but a dynamic and adaptive phenomenon that includes forgetting as a useful function to prioritize relevant information and help us navigate the world.
Errors are Unavoidable: A brief reminder of Buffett's philosophy never hurts.
Can Artificial Intelligence Replace Analysts?: It seems that it is finally happening that artificial intelligence can replace professional analysts. The conclusions in this paper.
Can Machines Do Market Timing?: It looks like it is. The article describes how machine learning techniques can improve market timing strategies by identifying non-linear relationships between predictor variables and returns, resulting in modest but real improvements in the performance of these strategies.
How to Conquer Our Fears: Being a good investor also requires a certain emotional control. In this article, five universal tactics to overcome any fear, highlighting exposure therapy, visualization, orthogonal exposure, altitude training and identity formation.