On Longevity Insurance - Do You Feel Lucky?

On Longevity Insurance – Do You Feel Lucky?

By The Banker | Blog Posts, How Not To Invest, Insurance

For starters, I hate most insurance products that purport to replace investment products. But I had not heard of longevity insurance until this week, so I decided to check it out. Here’s the concept: Pay a big lump sum to an insurance company now (before retirement), in order to draw on a hefty fixed income [&hellip

The Katsuyama Revolution Continues

The Katsuyama Revolution Continues

By The Banker | Blog Posts, Investing, Wall Street

The Wall Street Journal carries an update this morning on the main protagonist of Michael Lewis’ recent book Flash Boys, Brad Katsuyama and his newly launched (October 2013) exchange known as the Investor’s Exchange (IEX). One of my main questions left after reading the book is the viability of this newly launched exchange. Katsuyama & his [&hellip

When Business Theories Go Bad

When Business Theories Go Bad

By The Banker | Blog Posts

I’m a fan of New Yorker staff writer Jill Lepore, whose previous article on the History of Debt in the US was totally fascinating. In a recent New Yorker article, she takes down the much admired theory of Harvard Business School ‘disruption’ guru Clayton Christensen. Christensen argues that companies that make incremental improvements to their [&hellip

Guest Post: Don't Buy Too Much Insurance!

Guest Post: Don’t Buy Too Much Insurance!

By Lars Kroijer | Blog Posts, Insurance, Personal Finance

Editor’s Note:  Lars Kroijer, semi-regular contributor here and author of Investing Demystified, offers one of the two most important principles of Insurance: Namely, don’t buy too much of it. In this post he uses the simple example of auto insurance – which because of state laws in the US we must buy – to argue [&hellip

Book Review: Diary Of A Very Bad Year

Book Review: Diary Of A Very Bad Year

By The Banker | Book Reviews

I’ll admit to two large biases before praising Diary of a Very Bad Year: Confessions of an Anonymous Hedge Fund Manager. First, I prefer a personal account by a financial practitioner, rather than a financial journalist’s perspective, nearly every time. This preference, after all, underpins my idea with the Bankers Anonymous site itself. The acronymic [&hellip