The Investing Edge: The Win / Pay Odds Gap

Investing is too often looked at using a handful of academic models. Successful investing involves thinking about the investment process in as many different ways as possible. This article takes a look at investing using alternative views. From Betting to Investing Many of the ideas used by the investment community are adopted from the horse track and casino betting communities.

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Buying bitcoins is going long bitcoin deflation

Buying bitcoins as an investment means going long bitcoin deflation. That’s it. Let me explain. Bitcoin is a cryptocurrency, a digital currency made hard to forge using cryptography, and also a payment platform such as those used by Visa, ATMs and if you’ve done wire transfers, the Swift system. The bitcoin technology platform is not new, it was first released

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Dana Gas seems confused about sukuk pricing

Dana Gas’s CEO thinks his sukuk coupons are above market even though the sukuk price is below market. This is inconsistent. I am not discussing any Sharia law issues here, just the simple dynamics of the bond (including sukuk) market. This opinion is based on an article in The National. According to Dana Gas’s CEO the sukuk are paying an interest

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Who Wins, the Trader or the Investor?

The perennially favourite discussion topic is trading versus investing. What’s the difference? Is it short time horizon versus long time horizon? Is it growth versus value? Is it Soros versus Buffet? This post is a continuation of my 2007 article in The National. Reading the previous article is not necessary to benefit from this post, but looking at the ideas

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Moral Arbitrage and the Inheritance Play

The thing about the rational investor hypothesis is that it assumes that investors wish to maximise a financial risk/reward function. They don’t. Investors have a utility function that includes economic considerations, but also includes many other goals important to the investor. Some investors may refuse to invest in defense companies, especially those that produce offensive weapons. Others may avoid investing

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