Weekly Readings Digest
Stick to your investment process even in the hard times
The value investing strategy is having a hard time and here to defend it is Clifford Asness of AQR capital
“A huge part of our job is building a great investment process that will make money over the long term, but a fair amount of our job is sticking to it like grim death during the tougher times…value alone lost because a lot of expensive stocks actually turned out to be worth it.“
Examples of Advantage Flywheels
“Competitive advantage can be represented visually as 1 or more feedback loops. These create the advantage “flywheel” that maintain and grow a moat over time. Think of a big, heavy wheel that takes some effort to get started but then coasts off its own momentum. [Above] are 6 simple examples of common advantages represented as flywheels”
It is wiser to just stick to index fund if you’re an individual investor
Most people, including me, would be better off if we gave up on being smart and stuck with a simple approach: long-term holdings of diversified, low-cost index funds, using only money we can afford to tie up for years.
Erick Mokaya's Blog 