Author: John Reagan
With the buzz of the 2014 Major League Baseball Season in the air, this is a great time to revisit one of our favorite books, Moneyball, by Michael Lewis. For the unfamiliar, this book is to baseball as Taking the long view is to investing: a look at how data and evidence will allow you to make smarter decisions in evaluating baseball players—and investment choices.
Our colleague, friend, and director of investment strategy for the BAM ALLIANCE, Jared Kizer, wrote a great blog post where he talks about some of the similar applications in investing that predate Moneyball.
When you use the data and evidence, it allows you to ignore the noise and focus on factors that really matter. That’s how we approach investing for our clients.
If you haven’t read Moneyball or seen the movie, let us know and we would be happy to send you either version of this now classic Michael Lewis story.
How’s your billion dollar bracket doing?
You’ve likely heard about Warren Buffett’s recent NCAA basketball tournament challenge: build the perfect NCAA bracket and you could win $1 billion. Some may think Warren is crazy, but he knows that the odds of picking the perfect bracket are similar to that of picking the next great stock or fund manger—not good.
While it might be fun to wager $20 and watch the games, managing your money is far from a game. Just as Warren used the evidence to make this safe bet (there are 9.2 quintillion different potential bracket combinations), we also use the evidence to keep the odds on your side when investing.
What’s the latest on the challenge? It was over after the second day of play. Read more about the results here.
Last month in the New York Times, Sam Polk offered a refreshing first-hand account from the underbelly of Wall Street. Polk is a former Wall Street trader who lived the excessive life that Hollywood often shows hedge fund managers and investment bankers living (see: The Wolf of Wall Street). Eventually, he did something that a lot of people would find difficult: he gave up his money addiction in search of something better. This article struck me as a great reminder that having the most money isn’t what life is about, and even if you do have financial freedom it doesn’t guarantee happiness. That’s why at Hill Investment Group we’re passionate about helping to refocus on the things that are truly important; life is too short to worry about the rest.