"Markets will do crazy things over time. When Charlie and I were at Salomon, they’d always talk to us about five sigma events or six sigma events, and that’s fine if you’re talking about flipping coins, but it doesn’t mean anything when you get human behavior involved. And people do things that — intelligent people do things — very intelligent, educated people do things — that are totally irrational, and they do them en masse. And you saw it in 1998. You saw it in 2002. And you’ll see it again." --Warren Buffett (2007)
"When people talk about sigmas, in terms of disaster potentialities in markets, they’re all crazy. They got the idea that bad results in markets would be predicted by Gaussian distributions. And the way they decided on that outcome was it made everything so easy to compute. They don’t follow Gaussian distributions. You have to believe in the Tooth Fairy to believe that." --Charlie Munger (2007)
Sub-Zero Yields Start Taking Hold in Europe's Junk-Bond Market (LINK)
Central bankers hinting at more monetary stimulus have depressed yields so much that even some European junk bonds trade at levels where investors have to pay for the privilege of holding them.
The number of euro-denominated junk bonds trading with a negative yield -- a status until recently associated with ultra-safe sovereign borrowers -- now stands at 14, according to data compiled by Bloomberg. At the start of the year there were none.
Extreme Makeover: Rich Barton Has A $700 Million Stake In Zillow And Plans To Turn It Into A Home-Flipping Machine (LINK)
Inseparable Pairs - by Morgan Housel (LINK)
Dr. Fox - by Chris Pavese (LINK)
The James Altucher Show: 469 - Ramit Sethi: (Part 1) (LINK)
Related book: I Will Teach You to Be RichMoney And Politics, Not Technology, Stand Between Us And Self-Driving Cars (LINK)
Daniel Ruiz talks about the auto sector (videos) (Part 1, Part 2, Part 3, Part 4, Part 5, Part 6)
AI Trained on Old Scientific Papers Makes Discoveries Humans Missed (LINK)
Venture Stories Podcast: Value Hacking and How To Avoid The Fake Growth Epidemic with Mike Maples (LINK)
What Ego Edges Out… - by Ryan Holiday (LINK)
The Story of Humans and Neanderthals in Europe Is Being Rewritten - by Ed Yong (LINK)
Book of the day: Master of the Game - by Connie Bruck