Reading Time: 4 minutes The Economist recently put out an epic on the future of asset management. Some of the conclusions were fairly obvious and well-known (albeit still important) but a couple of others struck me as under-appreciated. Who allocates capital? When you strip asset management back to it’s core societal purpose its about allocting investors’ capital to the … More Who allocates capital these days?
Reading Time: 3 minutes It’s good news when the stock market hits a new high, right? Well … maybe, but it might not seem like it if you are about to put money to work in the market , considering how to invest ongoing savings, or even making a switch from one asset class to another. If the market … More Advice for investing at all time highs
Reading Time: 2 minutes I’ve got a whacky and unpopular theory, hear me out … The largest group of tech stocks have soared past many market cap milestones recently. If only I’d had £1 for every time I’ve read that Apple exceeded the market cap of the FTSE 100 (eye catching, but so what?) and more recently that this … More Why FANMAG stocks are under-owned
Reading Time: 9 minutes Think Like a Military Commander: The Red Team “One thing a person cannot do, no matter how rigorous his analysis, is draw up a list of thing that would never occur to him” – Thomas Schelling The commander had a serious problem. It was October 2010, a company of Paras had just arrived in southern … More The military’s powerful risk management technique
Reading Time: 4 minutes Contrary to first impressions, big wave surfing is all about risk management. In the late 1980’s legendary Hawaiian big wave surfer Brian Keaulanu looked at the new models of jet ski that were being produced like the Yamaha Waverunner that allowed the rider to sit down, and had a flash of inspiration. He realised that … More We’re all risk managers now
Reading Time: 4 minutes Apparently only 12% of poker hands are actually won by the best cards. It’s not the cards you are dealt that determines your success, it’s how you play them … That’s one of the central themes of the excellent book by journalist Maria Konnikova, The Biggest Bluff which charts her unlikely journey from psychology researcher, … More Think Like a Poker Player
Reading Time: 3 minutes First published in Family Capital. It may surprise you to learn that the historic city of Siena, in Italy, population 30,000, covers the same area as a road junction in Texas, population zero. How much does each contribute to GDP? How much is each worth? What would you pay as an investor to own the … More The future of investing in buildings
Reading Time: 3 minutes One Way Ticket: Nine Lives on Two Wheels Compelling reading for cycling fans – a refreshingly blunt review of the last two decades of bike racing from an insider’s viewpoint. Rare to see a geneuinely new narrative emerge in such a well-covered area. amazon.co.uk The Biggest Bluff by Maria Konnikova Poker as a metaphor … More My Summer Reading 2020
Reading Time: 3 minutes First published in Family Capital. “It is advisable for one that he should divide his money in three parts, one of which he shall invest in real estate, one of which in business, and the third part to remain always in his hands.” – The Talmud This passage appears in a record of debates between … More Have asset allocations changed in 2000 years?
Reading Time: 3 minutes As a runner, I’ve had my fair share of calf/knee aches and pains, usually it seems pretty clear to me is that what is needed is a good sports massage to work out the tension. I book into see a good physio, but imagine my frustration when a short while later I am balancing on … More Investors: Think like a Physiotherapist
Reading Time: 2 minutes To follow on from When the Rules Change. Should investors use more leverage? Usually avoided with an allergic aversion, but CALPERs recently put the cat among the pigeons with their strategic decision to use 20% leverage to meet performance targets. Clearly it all depends on the terms of the leverage. But if a foundation or … More Five questions I would love to know the answer to (but don’t)