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jerryking : commoditization_of_information   17

Investment managers need to become coders, says former CPPIB CEO - The Globe and Mail
CLARE O’HARAWEALTH MANAGEMENT REPORTER
DAVID MILSTEADINSTITUTIONAL INVESTMENT REPORTER

Mark Wiseman is learning Python, one of the world’s top computer programming languages.

The former chief executive officer of the Canada Pension Plan Investment Board is not trying to become a master coder, but instead believes investment managers must become proficient in manipulating large data sets to beat the market.

“If you are waiting to get a company’s quarterly or annual report and you think that is how you’re going to make an investment, you are dead meat,”........

“Sources of information are completely different than they were even 10 years ago for investors,” he says.

Today, BlackRock has already begun using “alternative data sources” to gain more in-depth information on companies such as sales predictions, customer traffic and inventory......“As we look at data in industry and how fast it’s moving, there is going to be an increasing bifurcation between proprietary and non-proprietary data."

Non-proprietary data is information that is readily available on the internet and can easily be used by competitors. Now, money managers are increasingly looking for proprietary data to win a competitive advantage.

For BlackRock’s equities business alone, Mr. Wiseman says the firm has tripled the budget for data over the past two years and holds between 400 and 500 proprietary data sets at a time.......learning Python is a more important skill for a young investment manager than learning foreign languages, or even some of the curriculum taught to chartered financial analysts.

“But this is what investing is about today,” he said. “So those of you who are spending your time on your CFA Level III, that is really nice to have the letters after your name on the business card. But you probably would have been better off spending your time learning how to code Python.”
alternative_data  BlackRock  coding  commoditization_of_information  CPPIB  information_sources  investment_management  Mark_Wiseman  massive_data_sets  proprietary  software_developers  software_development 
october 2019 by jerryking
The lesson for all investors arising from the lewd comments of a billionaire fund manager
OCTOBER 23, 2019 | The Globe and Mail | by IAN MCGUGAN

The money management industry that, in one way or another, is trying to seduce you.....The key to arriving at a mature relationship is seeing through the patter. Every fund company can trot out attractive, well-educated people with well-researched insights about the market. But look beyond the superficial charm.
More often than not, this will result in disappointment. The performance of most actively managed funds consistently lags passive market benchmarks, especially as you look at longer periods. In Canada, more than nine in every 10 funds underperformed their respective benchmarks over the 10 years to the end of 2018, according to S&P Dow Jones Indices.

In the United States, similar long-term trends hold true. Even the endowments of Ivy League universities, managed by teams of highly paid professionals, have failed to keep pace with a simple 60/40 portfolio of 60 per cent U.S. stocks and 40 per cent U.S. bonds over the past decade, according to research firm Markov Processes International. One simple lesson to take away from this is that indexing should be the default strategy for most small investors. Unless you have a strong view of where the market is going next, or a compelling reason to believe in a specific money manager, putting money into a low-cost, widely diversified index fund makes sense. No, it’s not going to work all the time – no investing strategy does – but it is hard to shrug off the long-term evidence of superior performance.

John Huber at Saber Capital Management, is often asked what his edge, or advantage, is. “Institutional investors seem especially interested in this question, and the edge that they are almost always looking for is some form of informational edge or insight that the rest of the market isn’t aware of,”......The problem is that such edges don’t exist any more. Oceans of financial and corporate information are available to any professional investor. Legions of professionals pore over that data, looking for reasons to buy or sell. Nobody knows more than anyone else – at least, not legally.......The only sustainable edge, Mr. Huber argues, is maintaining a different time horizon than the overall market.....
active_investing  commoditization_of_information  disappointment  index_funds  informational_advantages  investors  Ken_Fisher  lessons  money_management  passive_investing  slight_edge  time_horizons 
october 2019 by jerryking
Six rules for managing our era’s oversupply of non-stop news, high-decibel outrage
May 11, 2019 | The Globe and Mail | editorials.

Rule No. 1: You don’t need to have an opinion about everything. Shocking but true. ....It’s perfectly fair to say, “I don’t know enough to have an opinion on that," or, “I will leave that to others to debate,” or even, “Both sides have some good points.” You might not please everyone, but see Rule No. 2.

* Rule No. 2: You can’t please everyone. Get over it.

* Rule No. 3: Embrace ambivalence....often misinterpreted as indifference, or derided as indecision. In fact, the ability to entertain contradictory but animating ideas goes to the heart of what it means to be a mature and civilized human being. It’s also central to preserving political freedom. The most dangerous person in a democracy is the blind partisan who outsources her opinions to politicians or an ideology, and who sees those who don’t agree as enemies to be righteously chased from town by a torch-wielding mob. The biggest threat to such black-and-white partisanship is the person who keeps her mind open, is not blindly loyal to any one team and sees people with different opinions not as monsters to be slain but as human beings to be understood, especially when you disagree with them, and they disagree with you.

* Rule No. 4: When you take a stand, be forceful. While the process of reaching a conclusion should involve a lot of “on the one hand” and “on the other,” at some point you have to make a choice.

In a criminal trial, the decision to convict an accused person can only be taken if the evidence is persuasive beyond a reasonable doubt – in other words, if the evidence is irrefutable and the conclusion is certain. But in politics, business and life, most decisions must be taken under conditions that cannot meet that exacting standard. Reasonable doubts are reasonable. Only the extreme partisan is without them.

* Rule No. 5: Set your bottom line. How far are you willing to let another person go before you feel obliged to offer a counter-opinion? Not every take you hear deserves the energy required to argue against it. Sometimes, you have to just let people say things you don’t agree with. You might learn something.

And remember, just as there is no obligation to have an opinion on every subject, there is also no rule that says you must express your opinion every time the chance presents itself. But when someone or something does cross a line, sometimes you can’t hold back. It may be as lofty as a matter of justice, or a simple as a question of common sense, but there comes a moment when your opinion will matter.

* Rule No. 6: Opinions are not the same thing as empathy. Empathy is what makes it possible for people who disagree to live together in peace and harmony – to agreeably disagree. And in a multicultural, multireligious, multiracial, multiparty democracy, people are going to disagree about all sorts of things, all the time.

The world has enough opinions. What it really needs is more empathy. Without it, life isn’t possible.
21st._century  agreeably_disagree  ambivalence  commoditization_of_information  disagreements  disinformation  dual-consciousness  empathy  hard_choices  incivility  incompatibilities  indecision  information_overload  news  opinions  open_mind  outrage  partial_truths  partisanship  partisan_loyalty  political_spin  propaganda  rules_of_the_game 
may 2019 by jerryking
How a Former Canadian Spy Helps Wall Street Mavens Think Smarter
Nov. 11, 2018 | The New York Times | By Landon Thomas Jr.

* “Atomic Habits: An Easy and Proven Way to Build Good Habits and Break Bad Ones,” by James Clear. “
* “The Laws of Human Nature,” an examination of human behavior that draws on examples of historical figures by Robert Greene.
* “Thinking in Bets: Making Smarter Bets When you Don’t Have All the Cards” by Annie Duke,
* “On Grand Strategy,” an assessment of the decisions of notable historical leaders by the Pulitzer Prize-winning biographer John Lewis Gaddis

Shane Parrish has become an unlikely guru for Wall Street. His self-improvement strategies appeal to his overachieving audience in elite finance, Silicon Valley and professional sports.....Shane Parrish is a former cybersecurity expert at Canada’s top intelligence agency and an occasional blogger when he noticed something curious about his modest readership six years ago: 80 percent of his followers worked on Wall Street......The blog was meant to be a method of self-improvement, however, his lonely riffs — on how learning deeply, thinking widely and reading books strategically could improve decision-making skills — had found an eager audience among hedge fund titans and mutual fund executives, many of whom were still licking their wounds after the financial crisis.

His website, Farnam Street, urges visitors to “Upgrade Yourself.” In saying as much, Mr. Parrish is promoting strategies of rigorous self-betterment as opposed to classic self-help fare — which appeals to his overachieving audience in elite finance, Silicon Valley and professional sports. ....Today, Mr. Parrish’s community of striving financiers is clamoring for more of him. That means calling on him to present his thoughts and book ideas to employees and clients; attending his regular reading and think weeks in Hawaii, Paris and the Bahamas; and in some cases hiring him to be their personal decision-making coach......“We are trying to get people to ask themselves better questions and reflect. If you can do that, you will be better able to handle the speed and variety of changing environments.”....Parrish advises investors, to disconnect from the noise and to read deeply......Few Wall Street obsessions surpass the pursuit of an investment edge. In an earlier era, before computers and the internet, this advantage was largely brain power. Today, information is just another commodity. And the edge belongs to algorithms, data sets and funds that track indexes and countless other investment themes.......“It is all about habits,” “Setting goals is easy — but without good habits you are not getting there.”......“Every world-class investor is questioning right now how they can improve,” he said. “So, in a machine-driven age where everything is driven by speed, perhaps the edge is judgment, time and perspective.”
books  brainpower  Charlie_Munger  coaching  commoditization_of_information  CSE  cyber_security  decision_making  deep_learning  disconnecting  financiers  gurus  habits  investors  judgment  life_long_learning  overachievers  personal_coaching  perspectives  Pulitzer_Prize  questions  reading  reflections  self-betterment  self-improvement  slight_edge  smart_people  Wall_Street  Warren_Buffett 
november 2018 by jerryking
Hedge fund manager driven by a thirst for knowledge
December 10/11th, 2016 | Financial Times | Lindsay Fortado.

“I am always paranoid I’m not smart enough,” he said. “The biggest challenge in today’s world is that knowledge has increasingly become a commodity. How do you find the kernel of information, that anomaly that enables you to generate alpha?"
hedge_funds  United_Kingdom  HBS  slight_edge  anomalies  philanthropy  alpha  kernels  commoditization_of_information 
december 2016 by jerryking
China’s Firms Strive to Gain a Foothold in U.S. Venture Capital - WSJ
By LI YUAN
Nov. 23, 2016

“In an era when information and capital are commoditized, brand and network become more valuable,” she says. “It takes years to build them. The venture industry is a long game, not a sprint.”
vc  venture_capital  Silicon_Valley  China  Chinese  long-term  long-range  commoditization_of_information 
november 2016 by jerryking
Eight steps to making better decisions as a manager - The Globe and Mail
HARVEY SCHACHTER
Special to The Globe and Mail
Published Sunday, May 08, 2016

Write down the key facts that need to be considered. Too often we jump into decisions and ignore the obvious.

Write down five pre-existing goals or priorities that will be affected by the decision.

Write down realistic alternatives – at least three, but ideally four or more.

Write down what’s missing. Information used to be scarce. Now it’s so abundant it can distract us from checking what’s missing (jk: i.e. the commoditization of information)

Write down the impact your decision will have one year in the future. By thinking a year out, you are separating yourself from the immediate moment, lessening emotions. [Reminiscent of Suzy Welch’s 10-10-10 rule. When you’re about to make a decision, ask yourself how you will feel about it 10 minutes from now? 10 months from now? and 10 years from now? People are overly biased by the immediate pain of some choice, but they can put the short-term pain in long-term perspective by asking these questions].

Involve at least two more people in the decision but no more than six additional team members. This ensures less bias, more perspectives, and since more people contributed to the decision, increased buy-in when implementing it.

Write down what was decided, as well as why and how much the team supports the decision.

Schedule a follow-up in one to two months.
Harvey_Schachter  decision_making  goals  buy-in  options  unknowns  following_up  note_taking  dissension  perspectives  biases  information_gaps  long-term  dispassion  alternatives  think_threes  unsentimental  Suzy_Welch  commoditization_of_information  process-orientation 
may 2016 by jerryking
Why strategy is dead in the water - The Globe and Mail
HARVEY SCHACHTER
Special to The Globe and Mail
Published Sunday, Nov. 16 2014

Old line discussions of "strategy" assumed that one's competitors today will be one's competitors forever. It also assumed that companies can control distribution and send out targeted marketing messages to prospects and customers. These days, competition can come at you from all directions – witness, for example, the many companies with which Amazon.com, once just a book seller, competes. Distribution is wild and woolly, and in an era of social media, companies no longer control the messages about their offerings.

“Control and predictability have been greatly diminished,”
Here are seven factors that prevent you from being classically strategic:

1. Incrementalism has been disrupted
2. Outcomes are unpredictable.
3. The past is no longer a predictor.
4. Competitive lines have been dissolved.
5. Information is abundant (i.e. the commoditization_of_information)
6. It hard to forecast value.
7. Fast trumps long-term.
fast-paced  commoditization_of_information  strategy  Michael_Porter  Harvey_Schachter  long-term  unpredictability  GE  IBM  data  information_overload  incrementalism  Amazon  kaleidoscopic 
november 2014 by jerryking
What's Next for Newsmagazines? - WSJ.com
April 4, 2008 | WSJ | By REBECCA DANA.
Fading Publications Try to Reinvent Themselves Yet Again

"Like any managers anywhere, we looked at a revenue picture that could be more thrilling and said, 'How can we accomplish two or three things?,' " Mr. Meacham said in an interview. " 'How can we control costs? How can we have money to rebuild and hire new voices and new reporting talent? And how can we do that in the service of what we've been trying to do with the magazine of the last year-and-a-half, which is make it more serious and try to make ourselves indispensable to the conversation?' "....."My whole view was there's more information out there than any time in human history. What people don't need more of is information," Mr. Stengel said. "They need a guide through the chaos."..."What's happened in the business as a whole is talk is cheap and reporting is expensive," said Newsweek writer Jonathan Alter, a 25-year veteran at the magazine who qualified for the buyout but declined it. But he adds, some of the change in culture is welcome. "In general, the office politics are at a much lower volume than in the past because the old fight of space is different than it was. If there's not room in the magazine for something, you can just do it online," he said.....At a recent speech at Columbia University, Mr. Meacham delivered a blistering response after he asked who reads Newsweek and none of the 100-odd students in attendance raised their hands.

"It's an incredible frustration that I've got some of the most decent, hard-working, honest, passionate, straight-shooting, non-ideological people who just want to tell the damn truth, and how to get this past this image that we're just middlebrow, you know, a magazine that your grandparents get, or something, that's the challenge," Mr. Meacham said. "And I just don't know how to do it, so if you've got any ideas, tell me."
chaos  commoditization_of_information  cost-controls  cost-cutting  curation  indispensable  information_overload  Jon_Meacham  journalists  journalism  magazines  multiple_targets  newsstand_circulation  office_politics  print_journalism  questions  reinvention  talent_acquisition  think_threes 
june 2012 by jerryking
Teaching High School Students Applied Logical Reasoning
2009 | Journal of Information Technology Education Volume 8,
Innovations in Practice | Dan Bouhnik and Yahel Giat

The rapid changes in information technology in recent years have rendered current high school
curricula unable to cope with student needs. In consequence, students do not possess the proper
skills required in today’s information era. Specifically, many students lack the skills to search
efficiently for information. Moreover, even when abundant information is available to them, students
are unable to critically read, analyze, and evaluate it.
To address these problems we developed a high school course designed to provide students with
applied logical tools. The course was developed for two different student groups: social sciencesoriented
students and exact sciences-oriented students. It is composed of several parts whose contents
depend on the students’ orientation. This course is part of a broader program whose purpose
is a comprehensive study and understanding of logical and concept-based systems....Thus, instead of utilizing this abundant information to produce better informed students, we often find that students are unable to distinguish true from false, separate fact from fiction, identify the underlying motives, and reach sound and reasoned opinions
agreeably_disagree  argumentation  commoditization_of_information  critical_thinking  decision_making  disagreements  education  high_schools  information_overload  Junior_Achievement  life_skills  logic_&_reasoning  rapid_change  rhetoric  students 
november 2011 by jerryking
WSJ: Galleon and the Trouble With Insider Trading
Jan/Feb 2010 | The Corporate Board | Andy Kessler.

Information now travels at the speed of light. The edge to human traders
is mostly gone, arbitraged out by fast computers.
Near-term blips in stocks will always be driven by those with industry
contacts, legal or illegal. The only way to truly beat the market long
term is to use your head, think out long-term trends, figure out where
productivity and therefore wealth is being created in the economy,
and invest alongside it. This might include investing in wireless commerce, gigabit broadband, personalized prescription drugs, oil shale extraction, or electric smart grids that can better allocate power to where it is needed.
**********************************************************************
[January 06, 2020 |WSJ| Tech Will Rule These ’20s, Too by Andy Kessler]
So what’s next? My fundamental rule for finding growth trends is that you need to see viable technologies today, and then predict which ones will get cheaper and better over time. Microprocessors, storage, bandwidth—all still going strong after half a century.
2020s  alpha  Andy_Kessler  arbitrage  beat_the_market  broadband  commoditization_of_information  hydraulic_fracturing  ideas  insider_trading  JCK  long-term  personalization  power_grid  productivity  productivity_payoffs  Raj_Rajaratnam  shale_oil  smart_grid  strategic_thinking  technology  traders  trends  trend_spotting  wealth_creation 
june 2011 by jerryking
Corner Office - The 5 Habits of Highly Effective C.E.O.’s
April 16, 2011|NYT|ADAM BRYANT
* Passionate Curiosity.
Share stories re. failures, doubts & mistakes. Ask big-picture
questions re. why things work the way they do & can they be improved
upon? Know people’s back stories, and what they do. Relentless
questioning can lead to spotting new opportunities, or helping
understand subordinates, and how to get them to work together
effectively.
* Battle-Hardened Confidence
The best predictor of behavior is past performance, & that’s why so
many CEOs interview job candidates about how they've dealt with failure.

* Team Smarts
* A Simple Mind-Set
Be concise, get to the point, make it simple. ...There was a time when
simply having certain information was a competitive advantage. Now, in
the Internet era, most people have easy access to the same information.
That puts a greater premium on the ability to synthesize, to connect
dots in new ways and to ask simple, smart questions that lead to
untapped opportunities.
* Fearlessness - Not status quo!
CEOs  commoditization_of_information  concision  confidence  connecting_the_dots  contextual_intelligence  critical_thinking  curiosity  executive_management  fearlessness  interpretation  ksfs  leadership  Managing_Your_Career  mindsets  overlooked_opportunities  questions  subordinates  teams  the_big_picture 
april 2011 by jerryking
Larry Summers Says "Tiger Mom" Amy Chua May Be Wrong - Davos Live - WSJ
January 27, 2011 By Jon Hilsenrath

His own children would be shocked to hear it, Mr. Summers said, but maybe Ms. Chua is wrong.

“In a world where things that require discipline and steadiness can be done increasingly by computers, is the traditional educational emphasis on discipline, accuracy and successful performance and regularity really what we want?” he asked. Creativity, he said, might be an even more valuable asset that educators and parents should emphasize. At Harvard, he quipped, the A students tend to become professors and the C students become wealthy donors.

“It is not entirely clear that your veneration of traditional academic achievement is exactly well placed,” he said to Ms. Chua. “Which two freshmen at Harvard have arguably been most transformative of the world in the last 25 years?” he asked. “You can make a reasonable case for Bill Gates and Mark Zuckerberg, neither of whom graduated.” Demanding tiger moms, he said, might not be very supportive of their kids dropping out of school.
Amy_Chua  billgates  WEF_Davos  education  Harvard  Larry_Summers  Mark_Zuckerberg  parenting  Tiger_Moms  commoditization_of_information  creativity  academic_achievement 
january 2011 by jerryking
Needle in a haystack
Feb 27, 2010 | The Economist. Vol. 394, Iss. 8671; pg.
15.|Anonymous. AS DATA become more abundant, the main problem is no
longer finding the information as such but laying one's hands on the
relevant bits easily and quickly. What is needed is information about
information. Librarians and computer scientists call it metadata.
ProQuest  folksonomy  tagging  metadata  haystacks  commoditization_of_information  relevance 
march 2010 by jerryking
The Age of External Knowledge - Idea of the Day Blog
January 19, 2010 | NYTimes.com.

Today’s idea: Filtering, not remembering, is the most important mental skill in the digital age, an essay says [JCK: filtering =discernment]. But this discipline will prove no mean feat, since mental focus must take place amid the unlimited distractions of the Internet.
+++++++++++++++++++++++++++++++++++++++
Now, anyone with good critical thinking skills and the ability to focus on the important information can retrieve it on demand from the Internet, rather than her own memory.[JCK: commoditization_of_information]
+++++++++++++++++++++++++++++++++++++++
Edge, the high-minded ideas and tech site, has posed its annual question for 2010 — “How is the Internet changing the way you think?”

David Dalrymple, a researcher at the Massachusetts Institute of Technology, thinks human memory will no longer be the key repository of knowledge, and focus will supersede erudition. Quote:...... The bottom line is that how well an employee can focus might now be more important than how knowledgeable he is. Knowledge was once an internal property of a person, and focus on the task at hand could be imposed externally, but with the Internet, knowledge can be supplied externally, but focus must be forced internally.
cognitive_skills  commoditization_of_information  critical_thinking  discernment  distractions  external_knowledge  filtering  focus  ideas  inner-directed  tools 
january 2010 by jerryking
When you're drowning in knowledge, it's experience that counts
Aug. 20, 2009 | Globe & Mail | by Dan Richards. The key
to success today is no longer knowledge and information alone; more than
ever it's the discipline, experience, perspective and insight to know
what to do with that information, something that only comes from the
battle scars earned working through multiple market cycles....The bottom line is simple: If knowledge alone drives success, then years of experience may be less critical than intellect and analytical prowess. But in a time of market uncertainty such as we see today, intellect and knowledge alone aren't enough. Financial advisers and money managers also need the acumen that only years of hard-won experience can bring.
business_acumen  commoditization_of_information  Dan_Richards  discernment  experience  financial_advisors  information_overload  insights  investment_advice  money_management  pattern_recognition  uncertainty  wisdom  self-discipline  judgment  perspectives 
august 2009 by jerryking
40 ideas we need now -- Unlearning the tyranny of facts
Nov. 2006 | This Magazine | DAVID NAYLOR. Engage in critical
thinking. Pinpoint flaws in logic, dissect rhetorical flourishes away
from the core of an argument, examine issues from different perspectives
and differentiate science from pseudo-science...We are still very
focused on facts—arrayed in patterns, conveyed passively, or uncovered
more or less predictably through cookbook experimentation and
unchallenging exploration. That emphasis seems incongruous. With
computers able to store and search vast amounts of information, facts
are cheap [JCK:the Web is really a source of "external knowledge"]...What might the next generation of learners do instead of
memorizing facts, you ask? Among other things, they could read and play
music. Play more sports. Write prose and poetry. Acquire a skeptic’s
toolkit of sound reasoning skills. Debate highly-charged issues and
learn the lost art of rational and respectful discourse. Study
inspirational biographies, not to memorize facts, but to promote
understanding of how one might lead a more meaningful life.

[From my own note: the presence of facts does not mean that the truth is present. The "truth" is a more complicated thing than mere facts alone]
agreeably_disagree  argumentation  biographies  commoditization_of_information  critical_thinking  David_Naylor  disagreements  external_knowledge  facts  ideas  infoliteracy  inspiration  logic_&_reasoning  poetry  public_discourse  rhetoric  skepticism  sports  uToronto 
may 2009 by jerryking

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