Snippet Finance Content Hub

  • I am excited to publish a curated list of the best blogs, tools, and webpages that form the heart of Snippet Finance.
  • The list is organized by category with other groupings like sector, geography, and type of content.
  • Use the controls at the top to filter, group, and search.
  • You can also rate content creators and leave a review.
  • You can submit ideas of good content creators here.
  • Note the list is best viewed on a desktop.

We live at 10 bits/second

  • Fascinating paper on how fast humans throughput information, 10 bits/second, and how this is in stark contrast to our sensory system which does 10^9 bits/second.
  • Why this is and how is still not well understood.
  • “Based on the research reviewed here regarding the rate of human cognition, we predict that Musk’s brain will communicate with the computer at about 10 bits/s. Instead of the bundle of Neuralink electrodes, Musk could just use a telephone, whose data rate has been designed to match human language, which in turn is matched to the speed of perception and cognition.”

Explaining PE Exit Drought

  • “The exit environment overall is governed by both cyclical and secular factors. Cyclical factors get a lot of airtime. Often mentioned are supportive macro, LP allocations right-sizing, and “animal spirits”. But the incentives facing sponsors get a vote. And sponsors today seeking to maximize their probability of survival face an environment that incentivizes retaining assets, lengthening their liabilities, and avoiding replacement/origination costs. This is the New Exit Game.”
  • Source.

2024 was Exceptional

  • Once S&P 500 return is decomposed into factors 2024 really stands out.
  • … What is particularly interesting about 2024 is how much of the S&P 500 return came from non-systematic (i.e., idiosyncratic) returns, driven by the significant appreciation of the “Magnificent Seven” (Mag-7), which now account for 35% of the S&P 500. Idiosyncratic returns are company specific and by definition should be uncorrelated and random.
  • In fact, idiosyncratic return has never contributed as significantly to the overall S&P 500 return as it has recently. Over the trailing 24 month period, idiosyncratic returns have accounted for 21% of the 51% return of the S&P 500.
  • Will it repeat?
  • Source.

Knowing Things is Hard

  • A dictionary of how hard it is to get true knowledge – biases and more.
  • FFriedman’s Law of Anecdotes (2010) “Distrust any historical anecdote good enough to have survived on its literary merit”
  • BBrandolini’s Law, the Bullshit Asymmetry Principle (2013): “The amount of energy needed to refute bullshit is an order of magnitude bigger than that needed to produce it.”
  • C – … Predictions, like advice, often tell you more about the person giving them than about the world.
  • DDefensiveness: its embarrassing to be wrong in public, so once you have publicly committed to a position its hard to change your mind. 
WordPress Cookie Notice by Real Cookie Banner