I am experimenting with moving my investment blogging back to my main blog. More people seem to read my old posts there, than my recent posts here. Feedback on whether it is a good idea is welcome
Earlier this year, a Credit Suisse research note on Google caused a furore by suggesting that Google was spending huge amounts to pay for Youtube's bandwidth usage. Now people have realised their mistake, and we now see articles saying that Google's bandwidth bills are zero. Both are wrong.
A few quick thoughts, following on from my previous post:
Richard Beddard recently looked at chart produced by Morgan Stanley showing which investment strategies are suited to each market phase (bull. bear etc.), and, quite correctly, commented that he did not think it possible to anticipate changes is market phase well enough. I think Richard underestimates the dangers of Morgan Stanley's suggestions, and I think that there is a better alternative that I have suggested before.
I am not going to comment on the details of, or have no intention at all of commenting on the guilt or innocence of the accused in the insider trading case centred on Raj Rajaratnam. What I am interested in are the wider implications.
According to a paper co-authored by Nassim Nicholas Taleb, Black and Scholes (along with Merton) are wrongly credit with originating the widely used option pricing formula, and their version of the formula is inferior to its predecessors in many ways.
The London Stock Exchange seems to be getting a bargain with its purchase of my former employer, Millennium IT. The price of seems justified by the savings from replacing the current (expensive to run) platform, and, in addition it is a better platform and Millennium IT itself is a potentially significantly profitable business.
New Zealand has given us what may be the most unwittingly transparent set of accounts ever:
I have blogged before about who did, and who should have, foreseen the credit crunch. Brad Delong has a lengthy quote of Michael Musa, that is the best pre-crunch explanation of what went wrong that I have seen yet.Next→