Summary of “The Incredible Creative Power of the Index Card”

How many hours have I spent on quiet afternoons with a stack of books I’d recently finished, going back through and copying onto index cards all the passages I liked? Stories.
A thousand hours? More?Nearly every dollar I’ve made in my adult life was earned first on the back or front of an index card.
It’s not an exaggeration: Nearly every dollar I’ve made in my adult life was earned first on the back or front of an index card.
My introduction to the power of the index card came from Robert Greene.
With The 33 Strategies of War, he explained in his Reddit AMA, “Blue cards would be about politics, yellow strictly war, green the arts and entertainment, pink cards on strategy, etc.”
Once she’s satisfied with an outline of paper index cards, she transcribes all of the cards into the writing software Scrivener.
When Vladimir Nabokov died in 1977, he left instructions for his heirs to burn the 138 handwritten index cards that made up the rough draft of his final and unfinished novel, The Original of Laura.
David Rockefeller - the heir to America’s greatest fortune, veteran banking CEO, and legendary philanthropist - collected some 200,000 3-by-5 index cards, which he stored for decades in a specially-made Rolodex machine at his family offices at Rockefeller Center.

The orginal article.

Summary of “International Rankings: What Are The Benefits And Drawbacks?”

International Rankings: What Are The Benefits And Drawbacks? : Goats and Soda Nonprofits and advocacy groups use the rankings as a tool to name and shame countries into improving their policies.
That’s the way it looks in many international rankings, which tackle everything from the worst places to be a child to the most corrupt countries to world happiness.
“Countries can get index fatigue, not know where to prioritize, become complacent and refuse to pay attention to them,” notes Jacqueline Muna Musiitwa, an international lawyer based in East Africa.
Even though the top and bottom countries are often markedly similar, international groups believe that there are benefits to the sorting and ordering.
The country put together a working group to “Rapidly pass laws and promulgate administrative rules” to shoot the country to 37th place in 2007.
Consider Transparency International’s Corruption Perceptions Index, which attempts to rank the world’s countries by how corrupt their public sectors are.
When NPR asked Transparency International if it has seen any direct links to reform, spokesperson Ferenc Gaál responded: “It is difficult to draw clear causal links between the Index and concrete impact in the form of improvements of the corruption situation in any one country’s public sector.”
“The rankings provide some kind of guide to show that a country is well-placed to receive an investment, to figure out how stable the environment is.”

The orginal article.

Summary of “The Hidden Index Bubble”

The money invested in a passive index fund is allocated to match the allocation of whichever index it tracks.
The largest companies receive the most investment when money flows into passive investments.
Its increasing popularity adds incrementally to the market caps of all companies in the index – but even more so to the largest ones.
As you move down the ranks of companies in the index, the growth variance gets smaller.
The Russell 2000 is made up of the smallest 2,000 companies in the Russell 3000, and thus it has no overlap in companies with the S&P 500.
Indexing is a form of “Blind money” investing, where money flows to a subset of companies based not on their fundamentals but on their inclusion in the index.
As indexing receives more fund flows, the larges companies within the index receive proportionally more of those funds than the smaller ones.
As money flows into passive index funds, it trickles down to the largest companies first – companies like Apple, Microsoft, Amazon, and Facebook.

The orginal article.

Summary of “The Beginner’s Guide to Index Funds”

The difference between an index fund and an ETF. How to buy your first index fund.
Index funds typically have a much lower expense ratio – the percentage of assets paid to the mutual fund company – than typical mutual funds.
Vanguard’s Total Stock Market Index Fund Admiral Shares have an expense ratio of just 0.04%. Schwab’s Total Stock Market Index has an expense ratio of 0.03%. Conversely, actively managed funds have an average expense ratio of 0.69%. Removing the psychology of investing.
Buying an index fund, or building a portfolio of index funds, can help mitigate the psychological hurdles individual investors face.
Index funds can have much lower taxes than traditional mutual funds.
An ETF is merely a subset of index funds that trade more like equities than like mutual funds.
Bogle might’ve invented the index fund at Vanguard, but there are now many companies offering index mutual funds and ETFs to investors.
The key to investing in index funds is to understand the index your investing in.

The orginal article.

Summary of “How the Index Card Cataloged the World”

The index card was a product of the Enlightenment, conceived by one of its towering figures: Carl Linnaeus, the Swedish botanist, physician, and the father of modern taxonomy.
Like all information systems, the index card had unexpected political implications, too: It helped set the stage for categorizing people, and for the prejudice and violence that comes along with such classification.
While flimsier than heavy stock and cut by hand, they’re virtually indistinguishable from modern index cards.
In 1780, two years after Linnaeus’s death, Vienna’s Court Library introduced a card catalog, the first of its kind.
To take one example, the FBI’s J. Edgar Hoover used skills he burnished as a cataloger at the Library of Congress to assemble his notorious “Editorial Card Index.” By 1920, he had cataloged 200,000 subversive individuals and organizations in detailed, cross-referenced entries.
Anyone who has used index cards to plan a project, plot a story, or study for an exam knows that hierarchies are inevitable.
Forty years ago, Michel Foucault observed in a footnote that, curiously, historians had neglected the invention of the index card.
The index card was a turning point, Foucault believed, in the relationship between power and technology.

The orginal article.

Summary of “Warren Buffett wins $1M bet made a decade ago that the S&P 500 stock index would outperform hedge funds”

MP: Specifically, Buffett offered to bet that over a ten-year period from January 1, 2008 to December 31, 2017, the S&P 500 index would outperform a portfolio of funds of hedge funds when performance is measured on a basis net of fee.
Warren Buffett made a $1 million bet at end of 2007 with hedge fund manager Ted Seides of Protégé Partners.
Buffett wagered that a low-cost S&P 500 index fund would perform better than a group of Protégé’s hedge funds.
“Is running a hedge fund profitable? Yes. Hedge fund managers typically demand management fees of 2 percent of assets under management,” according to Capital Management Services Group, which tracks the hedge fund industry.
A fund that tracks the S&P 500 fund might have an expense ratio of as little as 0.02%. MP: The chart above shows the annual returns on the S&P 500 index and the average annual returns on a comprehensive index of thousands of hedge funds maintained by Barclay over the period of Buffett’s bet: From 2008 through August of this year.
The average annual return for the S&P 500 index over that period was 7.8%, or more than double the average return on the Barclay Hedge Fund index since January 2008.
Except for 2008, the S&P 500 index outperformed the Hedge Fund index in every other year: 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, and 2017.
Funds of hedge funds accentuate this cost problem because their fees are superimposed on the large fees charged by the hedge funds in which the funds of funds are invested.

The orginal article.

Summary of “Are Index Funds Bad for the Economy?”

The top three families of index funds each manage trillions of dollars, collectively holding 15 to 20 percent of all the stock of major U.S. corporations.
Best of all for their investors, index funds have consistently beaten the performance of stock-pickers and actively managed funds, whose higher fees may support the Manhattan lifestyle of many bankers, but turn out not to deliver much to customers.
Over the past year or two, a growing chorus of experts has begun to argue that index funds and shareholder diversification are strangling the economy, and need to be stopped.
One journal article argues that large index funds are violating antitrust law; another recommends a limit on index funds owning stock in more than one company in an industry.
Would common owners actually pressure company managers to collude and raise prices? Would those managers, facing less investor pressure, simply stop competing so hard with one another, enjoying fat paychecks and allowing prices to float up and cost-saving innovation to wither? And would any of that plausibly happen when index funds own just 15 percent of an industry?
Not surprisingly, the managers of index funds have thrown cold water on these possibilities, and on the empirical research itself.
Even if index funds could cause airline fares to go up, they might not benefit: Those higher fares would mean higher business-travel costs to many other companies in their portfolios.
Azar emphasized to me that common ownership is less problematic if index funds own only a small share of a company’s stock, or if the company has other very large shareholders who don’t also own shares in the company’s competitors.

The orginal article.

Summary of “The Stupidest Thing You Can Do With Your Money”

Wait a minute – we know how to interpret our portfolio returns, don’t we? Those big money-management firms and mutual fund firms and investment advisors, they’re so helpful in telling us how much our hard-earned money is growing.
They’re called index funds and E.T.F.s, for exchange-traded funds.
BOGLE: The number comes out to around a trillion and a half flowing into index funds and a half a trillion flowing out of active funds, which is a $2 trillion shift in investor preferences.
The thing about the index fund – no sales loads, no portfolio turnover.
Over the past decade, according to The Wall Street Journal, “Between 71 and 93 percent of U.S. stock mutual funds either closed or failed to beat their closest index funds.”
BOGLE: You can buy an index fund of, an S&P 500 Index Fund, let’s say, for as little as 4 basis points, four one-hundredths of 1 percent.
There’s one growth fund, one value fund, a couple of bond funds, and it costs pretty much nothing.
Because if you read the entire rule, which I’ve read, it’s a governmental decision to allocate capital into index funds and E.T.F. funds that the government is deeming those things as being more efficient.

The orginal article.

Summary of “12 Warren Buffett quotes that’ll make you smarter about your money”

Yahoo Finance will host the live stream of Berkshire Hathaway’s shareholder meeting on May 6, 2017.When Warren Buffett speaks, the investing world listens.
Ranging from the reliability of index funds to the perils of credit card debt to the importance of basic investing principles, here’s a sampling of how Buffett thinks.
Investing isn’t too complicated, but know what you’re investing in”Intelligent investing is not complex, though that is far from saying that it is easy. What an investor needs is the ability to correctly evaluate selected businesses. Note that word ‘selected’: You don’t have to be an expert on every company, or even many. You only have to be able to evaluate companies within your circle of competence. The size of that circle is not very important; knowing its boundaries is vital.”
The term “Value investing” is redundant”We think the very term ‘value investing’ is redundant. What is ‘investing’ if it is not the act of seeking value at least sufficient to justify the amount paid? Consciously paying more for a stock than its calculated value – in the hope that it can soon be sold for a still-higher price – should be labeled speculation.”
On the other hand, if you get ahead of the game, even on a modest scale, so that money is coming in from investing and people owe you money or equities owe you ownership, you’ll be way ahead of the game as opposed to you owing your creditors every month.
Borrowed money has no place in the investor’s toolkit: Anything can happen anytime in markets.
Passive investing will make you more money than active trading”Our portfolio shows little change: We continue to make more money when snoring than when active.
Seriously, you cannot go wrong investing in index funds”Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees.

The orginal article.