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 12/11   The Stingy News Weekly: December 11, 2018 
 12/11   Zombie stocks on the TSX 
 12/10   Humans love a narrative 
 12/10   Wrong, random, or worse 
 12/10   The economy killed millennials 
 12/10   Risk and reward in public sector pensions 
 12/03   The Stingy News Weekly: December 3, 2018 

Most Recent Stingy News

The Stingy News Weekly: December 11, 2018
12/11/18 6:30 PM ESTSNW
This week we have the risk of random humans vs the reward of millennial zombies, and other oddities.
More SNW: The Stingy News Weekly: December 3, 2018
The Stingy News Weekly: November 26, 2018

Zombie stocks on the TSX
12/11/18 6:08 PM ESTStingy Investing
"The accompanying chart presents the picture. It highlights the returns of the S&P/TSX Composite Index, which generated compound annual returns of 6.8 per cent from the end of 1996 to the end of November, 2018. The second line shows the trajectory of what I.ll call the zombie portfolio, which contains stocks with negative EBITDAs. It lost an average of 4.4 per cent annually over the same period. Each dollar invested in the zombie portfolio decayed to just 38 cents whereas each dollar invested in the index grew to $4.26." [$]
More Stingy Investing: Bundle up to escape visible volatility
Simple trend following

Humans love a narrative
12/10/18 8:19 PM EST:Value Investing
"What that means is that if you can eliminate companies with really bad balance sheets or really poor quality businesses, or that are trading at crazy expensive multiples, then you can gain a lot versus the broad market as opposed to simply buying the absolute best balance sheets or the companies with the highest returns on capital."

Wrong, random, or worse
12/10/18 7:04 PM ESTMarkets
"Every year, the prognosticators come out of hiding. You have to wonder why they bother, given their record."
More Markets: When cash outperforms
The rise of zombie stocks

The economy killed millennials
12/10/18 6:52 PM ESTEconomics
"When researchers compared the spending habits of Millennials with those of young people from past years, such as the Baby Boomers and Gen Xers, they concluded that 'Millennials do not appear to have preferences for consumption that differ significantly from those of earlier generations.' They also found that 'Millennials are less well off than members of earlier generations when they were young, with lower earnings, fewer assets, and less wealth.' Millennials aren't doing in the economy. It's the economy that's doing in Millennials."
More Economics: Minimum wage backlash
Minimum wage hike hurt workers

Risk and reward in public sector pensions
12/10/18 6:40 PM ESTRetirement
"This paper questions whether Canada's public sector pension plans have discovered a formula that makes them a model for the world to emulate. The exceptional feature of Canada's public sector DB plans is not 'world-beating' investment strategies or good governance. It is the ability to enrich public employees by shifting large, undisclosed investment risks to taxpayers without fair compensation. By our estimate, this provides an unacknowledged $22 billion annual subsidy to Canada's public sector DB plans and, ultimately, to the members of these plans. This large public subsidy, not the virtues of the Canadian Pension Model, explains the plans. success. Without it, public sector DB plans would be no more viable than private sector DB plans."
More Retirement: 5 million to retire
Retiring at a stock market peak

The Stingy News Weekly: December 3, 2018
12/03/18 9:03 PM ESTSNW
This week we have writing to retire on $5 million while getting stuffed with free steak, and more.
More SNW: The Stingy News Weekly: November 26, 2018
The Stingy News Weekly: November 19, 2018

12/03/18 8:54 PM ESTBehavioiur
"Investors do all kinds of exercises to make sense of the world - modeling scenarios in spreadsheets, conducting diligence on management, or reading pitch decks. But few exercises help clarify your thoughts better than writing."

5 million to retire
12/03/18 8:50 PM ESTRetirement
"The overwhelming response: Are you nuts, rich lady?"
More Retirement: Retiring at a stock market peak
Retiring at a stock market peak 2

Bogle sounds a warning on index funds
12/03/18 8:41 PM ESTIndexing
"If historical trends continue, a handful of giant institutional investors will one day hold voting control of virtually every large U.S. corporation. Public policy cannot ignore this growing dominance, and consider its impact on the financial markets, corporate governance, and regulation. These will be major issues in the coming era."
More Indexing: Bundled investment sales
Charley Ellis interview

5 books I loved in 2018
12/03/18 8:38 PM ESTBooks
"My list is pretty eclectic this year. From a how-to guide about meditation to a deep dive on autonomous weapons to a thriller about the fall of a once-promising company, there's something for everyone. If you're looking for a fool-proof gift for your friends and family, you can't go wrong with one of these."
More Books: Lessons from Annie Duke
20 rules for writers

52 things I learned in 2018
12/03/18 8:34 PM ESTFun
"When he took over the bookshop chain Waterstones, James Daunt gave individual store managers control over which books to stock and how to display them. Over seven years, returns dropped from 20-25% to just 4%."
More Fun: Weird Al: Mission Statement
Strategy, patience, and prognostication

We're stuffed
12/03/18 8:14 PM ESTThrift
"Don't think you have too much stuff? Try moving out of your home of many years and cleaning out your closets - which we just did. My wife found five boxes of shoes she didn't recall she had and which she had never worn. Even I found two boxes of unworn shoes - but I'm innocent, because my wife bought them for me."
More Thrift: Fanning the flames
No core

When cash outperforms
12/03/18 8:11 PM ESTMarkets
"Cash hasn't outperformed both stocks and bonds over the course of a year since 1994. It's only happened 10 times in 92 years. The only time cash was positive while both stocks and bonds were negative was in 1969 and 1931."
More Markets: The rise of zombie stocks
The opportunity in trucking

The salesman wasn't pleased
12/03/18 7:57 PM ESTBrokers
"While the steak dinner pitch might not be a con game, it is a bit of a psychological dance. You attend, you eat free food and by the time the cheesecake arrives, you may feel you owe a salesperson a one-on-one meeting. Then you're on the hook. If these meals didn't catch lots of people, salespeople wouldn't keep paying for them."
More Brokers: Scalability for robo-advisors
Almost 80% of day traders lose money

The Stingy News Weekly: November 26, 2018
11/26/18 7:12 PM ESTSNW
This week we have bundling to escape visible volatility, peak retirement, rental nightmares, and more.
More SNW: The Stingy News Weekly: November 19, 2018
The Stingy News Weekly: November 12, 2018

Why BRK?
11/26/18 7:07 PM ESTBuffett
"This is why you get equity-like returns on BRK despite BRK having so much cash/cash equivalents on the balance sheet. This is hardly the balance sheet of a bearish CEO."
More Buffett: Buffett's underrated investment attribute
Berkshire's repurchase

Retiring at a stock market peak
11/26/18 4:54 PM ESTRetirement
"Retiring just before a stock market peak could be ruinous to your financial health but it doesn't have to be. A balanced portfolio was able to hold up using a simple set of assumptions even when our hypothetical investors were extremely unlucky with the timing of their retirement."
More Retirement: Retiring at a stock market peak 2
How to retire in your 30s

Retiring at a stock market peak 2
11/26/18 4:53 PM ESTRetirement
"We have absolutely no control over the timing of the next market peak, the returns the markets throw off or the sequence of those returns during our retirement years. But we can control how much money we spend so that will always be the biggest lever investors can use when trying to control their own financial destiny during retirement."
More Retirement: How to retire in your 30s
The worst time to retire

The rise of zombie stocks
11/26/18 4:45 PM ESTMarkets
"This short research note highlights that the number of zombie stocks in the US has been increasing steadily and is close to an all-time high. Given that interest rates in the US are rising, this will require these companies to restructure their balance sheets or face bankruptcy. Although cleansing the corporate world of zombies is a natural and healthy process, it will result in companies laying off employees."
More Markets: The opportunity in trucking
When stocks fell

Bundle up to escape visible volatility
11/26/18 4:28 PM ESTStingy Investing
"The markets are chilling investors this month. If you're worried about a deep freeze this winter, you might want to bundle up. In this case, bundling allows investors to shield themselves from the emotional pain of losses while still being able to profit from the market's upside. Sort of like having your hot cocoa and drinking it too." [$]
More Stingy Investing: Simple trend following
Canada's top dividend stocks 2019

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2011: Down 4.2%
2010: Up 19.7%
2009: Up 41.0%
2008: Down 32.9%
2007: Up 16.2%
2006: Up 37.6%
2005: Up 57.6%

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