Liberty

http://www.macleans.ca/economy/realestateeconomy/why-canada-isnt-immune-to-a-u-s-style-housing-crash/

Just to invert a bit on the starting point that shorting is out of favor right now; What's the right level of shorting anyway? Is it possible that the 2000s have accustomed us to a certain level because we had two huge crises? What was the right level in the 1990s? 1980s? 1970s? 1960s? 1950s? etc. I don't have an answer, but I think it's an interesting question. Maybe too many investors are still fighting the last war and are expecting a repeat of 2008-2009 any day now?

Nothing goes up 16,500% in less than a year just because of liquidity issues. Something seriously weird is going on here, and I pity anyone who has lost their kids college funds in the past few months shorting this...

http://www.businessinsider.com/a-closer-look-at-introbizcom-2014-7

http://www.thereformedbroker.com/2014/07/10/the-only-reason-investing-works-is-because-things-can-go-wrong/

I'm not sure what you meant here. ???

http://brooklyninvestor.blogspot.ca/2014/07/catmulls-mental-models.html

Thanks Sanjeev! :)

Thanks Ham, interesting read.

If you know the result, any bet is a good bet. I know that. I just meant that we're not talking about the same thing.

I meant the result. I would never make a bet like that.

I'd say that's a pretty good bet:

Thanks Meiroy.

I would not use complex formulas while investing, but I also wouldn't skip a book that otherwise seems interesting because it has formulas. I'm currently about 4 chapters in McKinsey's 'Valuation' and it has some formulas too, but they just help support what they're explaining about ROIC and growth, etc. The book has make clearer some things I had been thinking about for a while about business quality, and just for that the book is already worth it. I hope that Penman's book will similarly contain some interesting ideas that I can incorporate in my mental models even if I never use any of the formulas directly.

Every time I see Vinod Khosla's name I can't help but think about how he used to be a huge cheerleader for ethanol a few years ago. That left a bad taste in my mouth... But thanks for posting the interview, I'll check it out.

Got it in the mail. Looking forward to it.

WWTD? (What would Tepper do?) ;)

Great book.

My favorite is Adapt: Why Success Always Starts with Failure, which I highly recommend. I think this book is so useful I have given copies to my daughter and some of my students. That's a strong recommendation. I added it to the list!

Thanks for the recommendation. I've had Schelling's Choices and Consequences (http://www.amazon.com/Choice-Consequence-Thomas-C-Schelling/dp/0674127714/ ) on my shelf for a while, but haven't read it yet. I think it similarly deals with game theory, so it might interest some people here.

http://greenbackd.com/2014/07/07/john-maynard-keynes-and-the-performance-of-value-glamour-and-the-market-1926-to-april-2014/

I've read the first couple of chapters of McKinsey's Valuation and like it so far. Thanks jschembs for recommending it!

Here's a paper by Damodaran on return on capital and valuation: http://people.stern.nyu.edu/adamodar/pdfiles/papers/returnmeasures.pdf

Happy birthday, have a good one! :)

I'm adding this one to the list, thanks guy. Found it while looking up reviews of McKinsey's "Valuation" and then found this thread... Any of you read Damodaran's 'Investment Valuation'?