Archive for the ‘Wall Street’ Category

Book Review: Inside the Black Box

Book Review: Inside the Black Box

By The Banker | Book Reviews, Investing, Wall Street

I read Rishi Narang’s Inside the Black Box as a kind of primer on quantitative trading, in advance of reading Michael Lewis’ Flash Boys. Need for a primer on quantitative trading I need a primer before reading Flash Boys for several reasons. I was an ‘over-the-counter’ institutional bond guy, rather than a participant in the exchange-traded [&hellip

An interesting investment paper

An interesting investment paper

By The Banker | How Not To Invest, Investing, Wall Street

Today I will run the risk of re-posting somebody else’s work many months after others have had a chance to read it, on the assumption that non-professional readers do not spend their day scouring investment blogs for clever reading material. The much greater risk, I think, is that thoughtful work goes unread by people who [&hellip

Executive Pay with Equity Awards: It Takes a Buffett to Push This Agenda

Executive Pay with Equity Awards: It Takes a Buffett to Push This Agenda

By The Banker | Blog Posts, Wall Street

I recently pointed out the absurdity of certain executive pay packages which result from stock or stock option awards. Rather than matching “pay to performance” as proponents claim, the equity awards to executives often create absurd payouts for bad performance, or substitute lucky timing for skill. If the stock goes up during an executive’s tenure, or even [&hellip

A Fascinating Executive Compensation Story - Yahoo!

A Fascinating Executive Compensation Story – Yahoo!

By The Banker | Blog Posts, Wall Street

Every once in a while – ok, every couple of weeks – we get hit in the head with a new example of how “executive compensation” and “executive performance” have close to zero correlation in practice. The key to this disconnect is typically “incentive pay” through company stock or stock options. This week’s story about Yahoo’s [&hellip

Guest Post: Lars Kroijer on How Agnosticism Over Edge Can Earn You 7 Porsches

Guest Post: Lars Kroijer on How Agnosticism Over Edge Can Earn You 7 Porsches

By Lars Kroijer | Blog Posts, How Not To Invest, Investing, Personal Finance, Wall Street

Editor’s Note: Author and recovering hedge funder Lars Kroijer provided this guest-post, making the case that most of us would be better off acknowledging we do not have an edge over markets.  Most of us can’t consistently “beat the market,” but many of us pay a lot in fees to try. Please also see related [&hellip