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14 votes
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What does monopsony mean? "Family-owned" chicken farms offer an answer
8 votes -
'Is this a red line for us?' $15b European trade deal doomed if Australia dodges Paris pledge.
7 votes -
The rise of giant consumer startups that said no to investor money
9 votes -
Bank of America freezing accounts of customers suspected of not being US citizens
18 votes -
Cannabis should be added to NAFTA, former Mexican President Vicente Fox suggests
12 votes -
Australia to push EU-style trade deal in Asia
5 votes -
Ten years after the financial crash, the timid left should be full of regrets
10 votes -
Y Combinator plans to start doling out $60 million next year to study universal basic income
22 votes -
Beware rich people who say they want to change the world
21 votes -
US and Mexico reach a trade deal, paving the way to replace NAFTA
11 votes -
Walt Disney World workers reach deal for $15 minimum wage by 2021
13 votes -
The markets: Private economy and capitalism in North Korea?
5 votes -
Tesla announces they're remaining a public company
19 votes -
Recep Tayyip Erdoğan faults US for frail economy: good politics, but risky policy
5 votes -
Brexit stage left: Spending cuts and British strategic denial
9 votes -
Mexico says deal with US on NAFTA issues may be 'hours' away
4 votes -
What if a female CEO acted like Elon Musk? The Tesla CEO’s tearful New York Times interview reveals a lot about the double standards men and women face.
23 votes -
After the Bitcoin boom: Hard lessons for cryptocurrency investors
9 votes -
The shareholder value myth
5 votes -
Elon Musk confronts a fateful tweet and an ‘excruciating’ year
13 votes -
Most CRA auditors polled say Canada's tax system is skewed to protect the wealthy
8 votes -
This burrito includes an arbitration clause
8 votes -
A landmark ruling that has granted a casual worker annual leave entitlements has sparked warnings from unions and employer groups that a clearer definition of casual employment is needed.
6 votes -
Why public banks are suddenly popular
8 votes -
Where even Walmart won’t go: How Dollar General took over rural America
8 votes -
Elon Musk’s funding for Tesla wasn’t so secure
13 votes -
Canada doesn’t have an inheritance tax. For the sake of democracy, that needs to change.
23 votes -
Americans own less stuff, and that’s reason to be nervous
16 votes -
African economy: The limits of ‘leapfrogging’
3 votes -
Petty charges, princely profits
5 votes -
Vanguard warns of worsening odds for the economy and markets
5 votes -
Elon Musk’s Tesla funding wasn’t quite ‘secured’ after all
9 votes -
Where even Walmart won't go: How Dollar General took over rural America
13 votes -
US teachers' union urges pensions to cut investment in private prisons
6 votes -
Tesla CEO Musk accused in lawsuit of defrauding shareholders
17 votes -
A Financial Book discussion - Because we don't have a ~money sub yet
I'm re-reading through some investment books right now and thought I'd throw one them out here with my thoughts and questions. Investing and the Irrational Mind: Rethink Risk, Outwit Optimism, and...
I'm re-reading through some investment books right now and thought I'd throw one them out here with my thoughts and questions.
Investing and the Irrational Mind: Rethink Risk, Outwit Optimism, and Seize Opportunities Others Miss
by Robert Koppel
The title of this one intrigued me. Author Robert Koppel is a former investor/trader on the Chicago Mercantile Exchange. He covers a lot of research on what psychologists have discovered about biases and irrational thinking, particularly as it relates to investing and trading. He's also interviewed many other investors and offers his own observations from extensive experience.
He goes back and forth between having and investment plan and using intuition, which as it turns out are both tactics investors have used. I think the valuable part of this book is the way he ties in research by Nobel Prize winner Daniel Kahneman and others on biases to what happens when we make good and not so good decisions in finance. An example of one of those common pitfalls:
We also experience a reflection effect whereby individuals make irrational choices to enter or exit an investment based on a subjective reference point determined by whether they have already experienced a gain or a loss. An example of this would be someone waiting for a “breakeven” price before exiting from an investment that is performing poorly rather than looking at the market objectively, without reference to the purchase price.
The book isn't so much an investment strategy but rather a good overview of what's involved in the process. As someone who has handled his own investments for years, I found that Koppel's book is realistic and practical, especially for those of us who've had to make those hard decisions on buying and selling, either for the long term or short term.
My own particular problem is watching things too closely and losing a sense of longer term movement. Investing And The Irrational Mind is a great tool for giving me pause and reflecting on the mistakes I've fallen into over the years.
Even as basic a rule as "cut your losses short" is hard to follow and really give me pause to think about issues I've held onto for too long as well as others that went on to go up and away. I've love to hear your thoughts.
6 votes -
Trump admin cuts staff at financial markets watchdog
5 votes -
Why Tesla stock skyrocketed and got halted - Elon Musk is "considering" taking Tesla private in a $70 billion deal
12 votes -
The rules of monopoly
9 votes -
Tesla shorts lose more than $1 billion on post-earnings surge
15 votes -
Wells Fargo may have accidentally foreclosed 400 US homes
10 votes -
China announces retaliatory tariffs on $60 billion in US goods
13 votes -
China’s empire of money is reshaping global trade
3 votes -
PepsiCo CEO Indra Nooyi is stepping down after twelve years
5 votes -
"Xi's world order - July 2024" (Economics and speculative fiction - a sampling from this week's Economist)
7 votes -
The NRA says it’s in deep financial trouble, may be ‘unable to exist’
8 votes -
Donald Trump administration eyes US capital gains tax cut
9 votes -
Hammacher Schlemmer: The world's most peculiar company
6 votes -
The Bank of England has raised the interest rate to 0.75% - the highest level since March 2009
7 votes