Monthly Archives: November 2010

Book Review: The Last of the Imperious Rich

This is a great book for those that love economic history, as I do.  It describes the fortunes of the Lehman clan, Jews having emigrated from Germany, to antebellum Montgomery, Alabama, and later New York City, and what they did as a commodity trading firm that morphed into venture capital, and then investment banking. As […]

On Investment Modeling, Part 2

Before I begin tonight’s piece, one small thing that I want to point out from my last piece was that though my models were a few years ahead of the life insurance industry, the two most important things that I did were: Not optimize for best return, even if risk adjusted.  I gave extra weight […]

On Investment Modeling, Part 1

Investing is a battle between the past, present, and future. The past tempts all to look and see what has happened, and extrapolate, or assume mean-reversion.  It tempts academics to use simplistic math, and calculate alphas, betas, standard deviations, R-squareds, and more.  They consider the past to be prologue.  They estimate assumptions for asset allocation […]

Book Review: That Thing Rich People Do

If you know anything about investments, this is not the book for you.  This is the book for your relative or friend that doesn’t have the barest idea about how to manage money. This was another book that I thought I would not like after the first few chapters.  Too cutesy.  Too certain.  As the […]