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Pension Funds using options.

August 25, 2016 Comments (0)

Two states, Hawaii and South Carolina are using Cash Secured Puts to boost the yield of their pension funds. http://www.wsj.com/articles/pensions-play-with-puts-for-protection-1471777202 So what exactly is a cash secured put?   A put is a bet that the underlying stock will fall in price. Buying a put results in a payoff when the stock price falls below the strike.    Conversely, selling a put results in a loss when the stock price is below the strike.    The...

More poor performance from the NC Pension Fund

August 10, 2016 Comments (0)

Ron Elmer crunches the numbers on the recent performance of the NC Pension Fund and yet again finds that the fund has underperformed a simple basket of Vanguard funds. This isn't just bad luck.   It is exceptionally bad decision making.   Here's to hoping that the next Treasurer will do a better job.

John Oliver on retirement plans

June 13, 2016 Comments (0)

John Oliver on retirement plans, advisors and fees. His conclusion:  Index Funds.    Now where have you heard that before?

MSFT buys LinkedIn

June 13, 2016 Comments (0)

I guess I didn't see this one coming.   http://www.bloomberg.com/news/articles/2016-06-13/microsoft-to-buy-linkedin-in-deal-valued-at-26-2-billion-ipe079k9 I was looking back at my blog posts from 2011, and I was convinced that LinkedIn was overvalued then.  I think it still is, but you'd have done pretty well if you bought the stock at the IPO.  That's why I'm an indexer and not a stock picker!

R&D expenditures - then and now.

June 12, 2016 Comments (0)

Here's an interesting article comparing R&D expense in 2006 with now. http://www.bloomberg.com/view/articles/2016-04-29/amazon-and-facebook-are-big-spenders-on-r-d Top R&D today: Amazon, Alphabet (Google), Microsoft, Intel and Apple. Top R&D in 2006: Ford, Pfizer, GM, J&J, Microsoft, IBM, Intel.

Radiohead - it's all about taxes.

June 11, 2016 Comments (0)

Radiohead the band has an incredibly complex corporate structure, comprising of numerous individual companies.  As a colleague of mine has been known to say: "I bet there's a tax story in there somewhere". Read about it here: https://www.theguardian.com/music/2016/apr/29/radiohead-corporate-structure-firms

Yahoo's black hole

June 10, 2016 Comments (0)

How can you be worth -$8 Billion? Ask Yahoo.  http://www.bloomberg.com/features/2016-yahoo/

Should students use laptops in the classroom?

June 9, 2016 Comments (0)

Step into any classroom and you'll see rows of students with laptops open tapping away at their keyboards.  Some of these students are taking notes, some are checking facebook or instagram. Aside from distractions, I've wondered whether laptop usage is a good thing or not.  Turns out, the evidence is pretty clear.   We shouldn't use laptops for note taking. Here are a few articles... Scientific American reports that deeper understanding comes from handwritten...

John Oliver on Puerto Rico's debt woes

June 8, 2016 Comments (0)

Turns out that there is more to their problems than meets the eye. https://www.youtube.com/watch?v=Tt-mpuR_QHQ