Good reads from around the Web.
I know my co-blogger The Accumulator has a cult following among Monevator readers, but I never expected to see a financial product bearing his own name.
Of course I can’t be sure the money-amassing Accumulator device was named in honour of our parsimonious comrade-in-arms, or even inspired by him.
You’ve got to admit though that this fancy tube for collecting £1 coins does fit his mantra – it’s simple, cheap to run, and it can be operated by any DIY investor who has a pulse and the ability to save the odd £1 coin when holidaying in Bognor.
But I’m not going to take this lunge for fame lying down, rest assured. If The Accumulator can have a low-tech saving vehicle, then I think it’s time I finally launched my eagerly-awaited hedge fund.
The Investor’s Massively Asymmetrical Risk-Arbitrage Diversified Holdings Unit will invest in literally millions of distinct assets, each with their own bespoke characteristics.
And I can guarantee that there will be at least some people who are made into millionaires by the operation of my new hedge fund. (These people will be shown off at fancy City gatherings in order to convince more lucky punters to get into this great opportunity).
Of course, I shall be taking the customary 2% off investors for getting out of bed.
I shall also be gobbling up the quaintly traditional 20% of any profit made by my investors.
And how will it work? Oh, you don’t need to worry about that. It’s a black box, isn’t it? Trust me, I’m a soon-to-be rich hedge fund manager!
Okay, as you’re a loyal Monevator reader, here’s the skinny: Every week I will round up my investors’ money into a specially selected asset class that I have selected for return characteristics that are completely uncorrelated to the stock market.
In short, I will spend everyone’s money on lottery tickets – after my 2% take, of course.
It can’t lose!
(Well, I can’t lose.)
From the blogs
Making good use of the things that we find…
- Correlation and asset allocation – Rick Ferri
- Should I have more than one asset allocation? – Oblivious Investor
- The five best shares from 1994 – The Munro Fund
- The confusion between volatility and risk – Money & Markets
- Beware of a good story – The Big Picture
- Acquisition archives: Winners & Losers – Musings on Markets
- Stop acting like a victim – Retirement Investing Today
- J is for Judgmental Heuristics – Objective Wealth
- Relativity and anchoring – Gannon & Hoang on Investing
Product of the week: The Fixed Income Investor website likes the look of the Alpha Plus 5.75% retail bond.
Mainstream media money
Note: Some links are to Google search results – these enable you to click through to read the piece without you being a paid subscriber of the site
- …is his value investing style dead? – The Daily Beast
- Maybe not: The (old) new Warren Buffetts – Fortune
- What’s gold’s role? – Morningstar
- Why a high dividend strategy is dangerous – CBS
- Danger lurks inside the bond boom – Wall Street Journal
Other stuff worth reading
- What has gone wrong with hedge funds? – CBS
- ISA limits raised, AIM-shares may become eligible – Money Observer
- Jim Slater: It wasn’t just about the money [Google result] – FT
- UK Autumn statement: Income tax changes – The Guardian
- Peer-to-peer lenders like Zopa to be regulated – Telegraph
- Why all-cash portfolios can be risky, too – CNN
- Peston: The tax choices faced by companies – BBC
- The big long: Bets on US property recovery – The Economist
Book of the week: I have no opinion on The Aftershock Investor: A Crash Course in Staying Afloat in a Sinking Economy but I would point out that it’s just one of many gloomy investment books published in 2012. Like this fund manager, I think that might be bullish for the stock market.
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