Old School Value Nugget Fest (May 3rd Edition)

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Markets & Investing

Geographic diversification can be a lifesaver (Bridgewater) [PDF]
…yet most portfolios are highly geographically concentrated
Harness the power of high returns on invested capital
Five cheap companies that create value according to Elizabeth Collins: STRA, JNJ, MMM, FAST, SYY.

Hissing Sounds up North (GreenWood Investors)
On Canada’s ticking time-bomb of a housing market.
Prepay Mortgage Or Invest? Leverage & Negative Bonds (Fat Tailed and Happy)
“The calculus of comparing pre-paying this mortgage against taxable alternatives such as municipal bonds or long term capital gain rates therefore becomes massively more favorable in pre-paying a mortgage.”
Is hiring an advisor worth it? (Morningstar)
“Can advisors add enough value to justify their fees?”

Uber Questions (Stratechery)
Uber as a parody of startup culture: Cliche 1 – “We only need to get a small share of this very large market” Cliche 2 – “Skate to where the puck will be, not where it is.”

Changing behavior takes a long time (Abnormal Returns)
“Humans do change behavior over time, whether it be through necessity or choice. Generational transitions obviously play a big role in this, but there is hope that we can change, for the better, our actions.”

Behavioral economics reading list (Farnam Street)
This is a huge list and we’re not advocating that busy OSV subscribers SHOULD read all of them. Here’s what the FS folks are suggesting: “If you only want to read a few, check out the first three which will give you a firm introduction to everything you need to know.”

h/t Collaborative Fund