Tuesday, November 27, 2012

Oddly Relevant Nov-27-2012


A glimpse inside SAC: The firm tracks people’s performance, approach winners, and offer a couple hundred million dollars to manage independently—and sink or swim, based on your investing decisions. SAC charges its investors an “incentive fee” of 50% of profits, 30% for PMs, 20% for Cohen, who simultaneously manages a separate multibillion dollar portfolio of his own, constantly mines his portfolio managers for their best ideas so he can trade on them himself. [Note: A great model for performance actually]…Source: http://www.businessweek.com/articles/2012-11-27/at-sac-portfolio-managers-are-treated-like-stocks#r=hpt-ls

The Enemy of Mexico’s drug cartels: Maria Gorrostieta is the heroine a nation needs and deserves. Elected mayor of Tiquicheo southwest of Mexico City in 2008, she devoted herself not only in the good of the people, but also stopping the crime of opium, cannabis, and methamphetamine. She was brutally murdered last week—after her husbanded murdered in gunfire in October 2009. [Note: Her mission ended, but her legacy of defiance remains]…Source: http://www.ft.com/cms/s/0/61f98e46-33ef-11e2-9ce7-00144feabdc0.html

Mary Meeker’s “USA, Inc.” Key points: Reaching its biggest peace-time gap b/e revenue and expenses of the past 110 years, America’s budget deficit (now with -56% net margin) rapidly evolved to crisis levels with entitlements as its biggest (56% of total) expense, of which 74% are Medicaid, Medicare, and social security. Such expense along with interest will exceed USA’s revenue within 15 years. While most remain conflicted, it’s time for reorganization. [Note: Change we need, and these 2 pieces strongly recommended]…Source1: http://zh.scribd.com/doc/111764301/USA-Short-102412


The bullish case for growth: While worldwide slowing of growth is inevitable, we are nowhere near. Not only do the tiers of national development (thus comparative advantages) still exist and the resource substitutes widely untapped, much innovations that permit us to do more with less still lie ahead. As long as disasters and plague of wars are absent, human nature should continue to drive productivity forward like it had been. [Note: Econ 101 elegantly rephrased]…Source: http://www.advisorperspectives.com/newsletters12/48-critique4.php

The cost of pennies: A few facts. Carrying an extra penny would cost you 1 extra penny in gas after 140,000 miles, or burns 0.41 calories. If your time is worth $20 an hour, spending > 1.8 seconds picking up a penny is a loss. Additionally, a crude measure suggests that 1 calorie burned adds to about 30 seconds to one’s life, or 12 seconds per penny. [Note: I just erased the gains from all the pennies I’ll pick up in my entire life to summarize this article]…Source: http://what-if.xkcd.com/22/

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