Weekend Reads for Investors: Madoff, Montier, and Marks
Five years ago, Bernie Madoff’s Ponzi scheme was uncovered, and he was arrested and charged with criminal securities fraud. Months later he pled guilty and was sentenced to 150 years in prison. The Wall Street Journal’s interview with Madoff earlier this year reveals that five years behind bars has had little effect on Madoff’s remarkable arrogance and lack of contrition. Jason Zweig considers the recent boom in liquid alternative mutual funds to be the most ironic part of Madoff’s legacy. Investor trust was shaken by the Madoff scandal and the financial crisis of 2008, but global equity markets, with a little help from central bankers, have proven themselves resilient. How will stocks react when the central bank training wheels come off? We may find out soon.
Here are some worthwhile reads (and videos) you may have missed in recent weeks.
- Warren Buffett discusses Ben Graham, moats, and his biggest mistake. (David Kass’s blog)
- James Montier reminds us that there are no silver bullets in investing. (GMO, PDF)
- Howard Marks, CFA, sees risk appetites on the rise. (Oaktree Capital, PDF)
- Morningstar’s Samuel Lee says “buy and hold” is a noble lie. (Morningstar)
- Eugene Fama on the efficient market hypothesis and its exceptions. (Fortune)
- Cliff Asness shares his top 10 investing peeves. (Financial Analysts Journal, PDF)
- From funds to philanthropy: “Peter Lynch Journeys From Funds to Philanthropy.” (Bloomberg, video)
- According to Bob Seawright, “One forecast that is almost certain to be correct is that market forecasts are almost certain to be wrong.” (Above the Market)
- A look at how today’s US Stock Market compares with previous bull markets. (Enterprising Investor)
- According to Richard Bernstein, the stock market reads like a Shakespearean script. (Richard Bernstein Advisors, PDF)
- Examining the health of corporate India. (Inside Investing)
- An insider believes India can’t afford to emulate China. (McKinsey & Company)
- “The Rise and Fall of BlackBerry” (BloombergBusinessweek)
- “BlackBerry: Not Dead Yet! Seriously” (CNNMoney)
- Is it time for the revenge of the stockpickers? (Financial Times)
- Forecasting when active beats passive. (Instinet, PDF)
The Lighter Side
- Comedian Jon Stewart skewers Blackstone. (The Daily Show)
Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.
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