Most stocks fall more than 50% at some point

From 1985 to 2024, the median US stock suffered a maximum drawdown of 85 per cent.
Did he mean "fall in value"? Drawdown makes little sense here as far as I can see.
If you had bought a typical stock at its peak, you would have lost most of your money.
Well, duh! :rolleyes:
Amazon fell 95 per cent during the dot-com bust.
Yes, but...

Screenshot_20250617_105724.jpg
 
Holding Individual stocks is much much riskier than holding a diversified basket of stock
More importantly, this risk is uncompensated. Meaning the average expected return for individual stocks is the same as the expected return of the diversified basket. So you take on extra risk, for no additional expected return.
 
On a side note, does anyone know what his day job is? He seems to know his onions which suggests writing these snippets is a sideline, but I can't find any reference to him online other than his various articles.
Is it totally impossible that a financial journalist would know his onions?
 
Is it totally impossible that a financial journalist would know his onions?
You would be amazed how much 'journalism' these days is topping and tailing a press release and chucking in a few quotes to make an article. Very little knowledge of the subject matter required...
 
Oh, I know. I've posted about this before. But when you find a journalist who consistently publishes solid material, you shouldn't assume that he's moonlighting at journalism while actually doing some other job. It's not impossible that a specialist correspondent is interested in his topic, and knows his stuff.
 
Is it totally impossible that a financial journalist would know his onions?
I am a subject matter expert in a particular field. On a fairly regular basis I see reports in this field from "journalists" which are clearly a simple repetition of totally inaccurate briefings by officials in local & national government who are seeking to displace responsibility for their incompetence elsewhere. The kind of briefing where if the journalist has spent maybe 15 minutes googling the subject rather than having coffee with their mate in the Department/Council and talking about the rugby they would have easily revealed the total falsehoods they were reporting as "fact". Of course the same is true of their editors who one would have thought would want evidence of some kind of factchecking before publishing articles in national newspapers.
  • I'm also aware of instances of fairly damning documents being released to journalists under their annual trawl of freedom of information requests where either they didn't care about the issues documented therein or they just couldn't bother their backsides even skimming the content (of even the executive summaries) of the documents released to them....
Fake news isn't a new phenomenon, and really mainstream media, particularly the ones which were traditionally regarded as "of record", bear a huge responsibility for the fact that you can now post the most egregious lie on instagram etc and there's an excellent chance it will gain traction as a fact.

It's not impossible that a specialist correspondent is interested in his topic, and knows his stuff.
Of course it's not impossible. On the other hand this particular journalist publishes 3 short articles a week in the IT, which used to be 1 long-ish article, and that's his online trail for the last decade and more. His articles suggest more than a passing acquaintance with the facts and the details, which is itself disappointingly unusual in journalistic articles. He mentions owning BH shares— unless he's got another role in the IT which isn't mentioned on their website, it's vanishingly unlikely that he's being paid enough by the IT to support himself and invest at the same time. All of which leads me to the conclusion that the IT is a side gig.

You would be amazed how much 'journalism' these days is topping and tailing a press release and chucking in a few quotes to make an article. Very little knowledge of the subject matter required...
As above, it's my observation of reporting in my particular specialist area that the average journalist knows virtually nothing about research & investigation. And yes, of course there are exceptions.

All of that is a side issue to what I was aiming at with my question as to what PO'M's day job is: presumably at least some of his knowledge/expertise can be gleaned from public sources, and I had the vague hope that a clearer picture of the person writing those articles could provide me with a shortcut to that knowledge/expertise. Because right now I'm reliant on sorting the wheat from the chaff in the available online resources— and it seems to be mostly chaff....
 
But this guy looks like he could be the wheat, right?

A bit of online sleuthing suggests that he isn't published exclusively in the IT (though he is on staff there) and also that he has been a specialist correspondent in this area for a fair spread of years. And it doesn't suggest that anyone of this name has any profile for working in the finance or financial services field, or in related academic fields.

So maybe the cromulent explanation is also the correct one — maybe he became a financial journalist because he's interested in finance; he keeps abreast of his field; he has good contacts in the field; and he is good at his job. Newspapers these days don't employ many journalists, and much of what they print isn't written by journalists anyway, but that doesn't mean that there is journalism, or no good journalism. What you've found here looks like good journalism.
 
What you've found here looks like good journalism.
It does look like good journalism. Unusually good journalism. But that doesn't mean journalism is his fulltime job.

A bit of online sleuthing suggests that he isn't published exclusively in the IT (though he is on staff there) and also that he has been a specialist correspondent in this area for a fair spread of years. And it doesn't suggest that anyone of this name has any profile for working in the finance or financial services field, or in related academic fields.
Plenty of people use an Irish version of their name for the public (Facebook etc) for the purposes of maintaining relative anonymity. Many people also don't keep their LinkedIn etc up to date and (shock horror) many people don't have any such publicly visible social media channels. BUT googling the other journalists on the IT website, they all have social media etc.

Anyway, I'm not particularly on the hunt to out the guy. More that I want to know what journals he reads and what newsletters he subscribes to!
 
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