Sunday, December 9, 2012

Oddly Relevant Dec-9-2012


Betting on housing recovery by simply buying houses: Meet David N. Miller, former Treasury official who now runs Silver Bay Realty. The business is about buying thousands of foreclosed single-family homes on the cheap through bank auctions, multiple listing services, short sales and bulk purchases from local investors in need of cash, with plans to fix up the properties, rent them out and watch their values soar as the industry rebounds. The realty is about to go public. [Note: The good old value investing never dies]…Source: http://www.nytimes.com/2012/12/09/business/financiers-bet-on-rental-housing.html?pagewanted=1

Hedge funds fall out of love with equities: assets in fixed income hedge funds are poised to overtake those in equity trading strategies for the first time in the history of the $2tn industry. The dramatic shift comes as investors continue their search for steady returns even as warnings intensify about the danger of owning bonds offering very low yields. [Note: I read it more of a sign of bond market reversal]…Source: http://www.ft.com/intl/cms/s/0/e23a646c-40b6-11e2-aafa-00144feabdc0.html#axzz2Eb7CZ1AL

Quest to eliminate diagnostic lapses with a computer: Can a computer become a top-notch clinical diagnostician? Yes—as long as it can (1) separate signals from noise and (2) match complex medical patterns/profiles—and probably with (a) no anchoring bias and (b) does not suffer from the law of availability. As Watson demonstrated pushed language interpretation and data retrieval to new heights, the day with a computer doctor might not be that far away. [Note: Essentially a stats problem matching the patient’s case and millions of available cases, it is definitely solvable]…Source: http://www.nytimes.com/2012/12/04/health/quest-to-eliminate-diagnostic-lapses.html?pagewanted=2

Elon Musk’s next-generation ecosystem: Now that Tesla S was named car of the year, Elon has grander visions: also being the chairman of SolarCity, his plan is to set up free solar-powered supercharger stations for Tesla across the nation. This is some enviable vertical integration. In essence, he’s marketing the cars at premium and giving away the gas, the opposite of HP’s much despised sell-the-printer-for-cheap-and-gouge-consumers-on-the-cartridges approach. Along the side, Musk could franchise the space around these Superchargers, and he could control an entire ecosystem and lock down customers who have bought into his zero-emissions vision for years to come. [Note: The real Tony Stark, but I wouldn’t want to back his projects]…Source: http://pandodaily.com/2012/12/02/why-tesla-is-like-amazon-and-elon-musk-like-jeff-bezos/

Are you biased toward vivid data? We all pay undue attention to a good story. Information that has an emotional impact gobbles up attention. Dry information is ignored. As you try to accomplish something you may find that the bankruptcy of one competitor holds your attention more than an improved product being marketed by another. At work no one has packaged important information to make it easy to take in. Source: http://www.amazon.com/exec/obidos/ASIN/0887309585/farnamstreet-20

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