How Much Can We Blame On The Legacy of Slavery?

Nov 16, 2018 | Politics

Salsman vs. Buffet on Investing

Oct 30, 2018 | Politics

Richard Salsman exposes the falsehoods behind the active vs passive false alternative in The Daily Capitalist.Writes Salsman in "Buffett Won the Bet – and Missed the Point":

Mr. Buffett writes, “Investors, on average and over time, will do better with a low-cost index fund than with a group of funds of funds.” Well, that’s surely true for capital whose owners are willing to forgo potentially higher returns in exchange for lower risk and the guaranteed mediocrity of average gains and losses. For all other capital, however, the opposite is true. It takes outsized gains like Mr. Buffett’s to inspire and arm us to make progress. Similarly it can take outsized gains and losses to expose the truth, promote the outperformers, and keep yesterday’s under-performing strategies and managers from interfering with a better tomorrow.

Active-passive is thus a false choice.  All investing success depends on active thinking, buying and selling.

Still, Buffett concludes with cynicism:

“Human behavior won’t change. Wealthy individuals, pension funds, endowments and the like will continue to feel they deserve something ‘extra’ in investment advice. Those advisors who cleverly play to this expectation will get very rich. This year the magic potion may be hedge funds, next year something else. The likely result from this parade of promises is predicted in an adage: ‘When a person with money meets a person with experience, the one with experience ends up with the money and the one with money leaves with experience.’”

It’s true that human nature is constant, but our natural capacity for reason and infinite progress is precisely what makes such cynicism naïve.  In all cases, better inputs make consistent outperformance possible. Berkshire Hathaway’s track record proves this for stock picking and allocating. Our track record proves this for using price relationships to forecast headwinds, tailwinds and inflection points, and to profitably allocate within one or more of the 5 major asset classes and subclasses.

Read the rest at The Daily Capitalist.

UK’s Health Service Worse Than Average In Saving Lives

Jul 2, 2018 | Politics

NHS 'worse than average in treating eight common causes of death' | Society | The Guardian:

The research was carried out by the Nuffield Trust, the Health Foundation, the Institute for Fiscal Studies (IFS) and the King’s Fund. It determined that, with the NHS free at the point of use, the UK had the lowest proportion of people who avoided healthcare due to cost. Just 2.3% did so in 2016 compared with an average of 7.2% across the 19 countries, including France, Germany, Italy, Japan and the US. However, the UK’s health service performed worse than average in the treatment of eight out of the 12 most common causes of death. They included deaths within 30 days of having a heart attack and within five years of being diagnosed with breast cancer, rectal cancer, colon cancer, pancreatic cancer and lung cancer. The NHS was also the third-poorest performer in cases where medical intervention should have prevented death, and had consistently higher death rates for babies at birth or just after (perinatal mortality), and in the month after birth (neonatal mortality).