Links - 3/7/2021
“Students of financial history can point to historic levels of valuation to suggest that we are in a bubble. But students of psychology may be needed to complete the picture. For one thing, the financial markets have been so strong for so long that fear of market risk has mostly evaporated. People who used to hold bank certificates of deposit now maintain a portfolio of growth stocks. It is not really within human nature to comprehend that you may not know everything you think you know, and, further, that what you believe in could change on a dime.... With more and more of the market value of U.S. equities represented by lofty (in some cases infinite) multiples of current results, a change in sentiment could wipe out a large percentage of investor net worth. Sentiment, existing only in the minds of investors, is subject to change quickly and without notice.” —Seth Klarman (June 1999) [And as an aside, I still haven’t seen a copy of Klarman’s 2020 letter, in case anyone happens to have a copy that they are able to share.]
A Memo to Investors - by Drew Dickson (LINK)
You Can Earn 6%, 8%, Even 12% on a Bitcoin ‘Savings Account’—Yeah, Right - by Jason Zweig ($) (LINK)
‘This Is Unprecedented’: Why America’s Housing Market Has Never Been Weirder - by Derek Thompson (LINK)
‘I’ve Never Seen Anything Like This’: Chaos Strikes Global Shipping [H/T Linc] (LINK)
Peter Lynch is the GOAT - by Barry Ritholtz (LINK)
The Common Thread - by Frank K. Martin (LINK)
This Week in Intelligent Investing Podcast: Danny Meyer’s Concept of “Constant, Gentle Pressure” | Equity Duration (LINK)
The Investor’s Podcast: TIP339: Common Sense Investing w/ Joel Greenblatt (LINK)
16 Minutes News by a16z: Semiconductor Shortage and the Global Supply Chain Squeeze (LINK)
“Generally speaking, there’s more felicity to be gained...from reducing expectations than in any other way.” —Charlie Munger