2/ "These are ideas so ingrained in the collective consciousness that it seems foolhardy to even wonder if they’re potentially untrue. Sometimes these seem like questions only a child would ask, since children aren’t paralyzed by the pressures of consensus and common sense.
3/ "When you ask smart people if there are major ideas that will be proven false, they say, “There must be. That has been experienced by every generation in history.”
"Yet offer a list of contemporary ideas that might fit, and they’ll be tempted to reject them all." (p. 2)
4/ "If what I say now seems to you to be very reasonable, then I’ll have failed completely."
—Arthur C. Clarke, speaking in the year 1964, attempting to explain what the world might be like in the year 2000
5/ "The sheer amount of information about current ideas makes contradiction difficult when public consensus is the arbiter of validity. We behave as if we’ve reached the culmination of human knowledge. While that must be false, the sensation of certitude is paralyzing." (p. 10)
6/ "The Book of Predictions was released in 1980, reflecting a failure to imagine a world where the U.S. and the Soviet Union were not on the cusp of war. Virtually every thought about the future of global politics focuses on either (a) an impending nuclear collision, or
7/ "(b) a terrifying alliance between the USSR and China. As far as I can tell, no one in the entire Book of Predictions assumed the friction between the US and Russia could be resolved without the detonation of nuclear weapons." (p. 15)
8/ "In 1994, the idea of a sixty-minute phone call from Michigan to Texas costing less than mailing a physical letter the same distance was still unimaginable. Which is why no one imagined it in 1980, either." (p. 16)
9/ "The present must be analyzed through the values of a future that’s unwritten, and we must first build that future world within our mind. But it’s not even the hardest part. The hardest part is accepting that we’re building something with parts [values] that don’t yet exist.
10/ "What if the greatest writer of this generation is someone who will die totally unknown? Or—stranger still—what if the greatest writer of this generation is a known figure, but a figure taken seriously by no one alive (including, perhaps, the writer in question)?" (p. 30)
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1/ THREAD: Magazine cover predictions, shoeshine boy tips, and other questionable calls
"On Aug 13, 1979, the front cover of Business Week featured a crumpled share certificate in the shape of a crashed paper dart: ‘The Death of Equities.‘ "
2/ "Do we really not care about looming crises (national debt, underfunded pensions/Social Security/health care, student debt), or is it that we feel shackled by our lack of understanding?
"As money continues to become a bigger part of our lives, we understand it less." (p. 2)
3/ "Not too long ago, we didn’t have the advantages the financial world now provides. For example, mortgages weren’t widely available to the general public. If you wanted to buy a house, you had to save up the entire purchase price." (p. 3)
1/ Resurrecting the Value Premium (Blitz, Hanauer)
"We use more powerful value metrics, apply basic risk management, and make more effective use of the breadth of the liquid universe of stocks and conclude that a healthy value premium is still present."
2/ "The big-cap component of HML has been flat on balance since the early 1980s.
"HML has been critically dependent on the efficacy of B/M in the small-cap space. The concern that the HML premium is seriously impaired or may even have disappeared does not seem unreasonable."
3/ "The U.S. post-publication HML value premium is less than 1% per annum with an insignificant t-stat. The big-cap HML component even displays a negative average return.
"The only significant HML performance in Developed-ex-US and Emerging Markets is in the small-cap space."
"Buffett doesn't have the highest annual returns: Renaissance Technologies tops that with 66% since 1988. But @morganhousel notes that Simons’ net worth is $23 billion vs. Buffett’s $81 billion. The difference: fewer years of compounding." @GuruInvestor