Who knew Pastor Maldonado crashed the Australian Grand Prix (again)? At least according to GrandPrix.com he did.
This was the first Formula One race of 2016. I’ll get to the race a little later. There’s no point in sugarcoating what I think of the new qualifying format: It was terrible.
Instead of the previous format of having three “knockout” sessions where a set number of the slowest drivers are eliminated after each of the first two sessions, F1 has kept the three session knockout format but made a confusing change where after a certain number of minutes into each session, the slowest driver gets knocked out every 90 seconds. This gets repeated until the requisite number of drivers is eliminated. The idea behind this was that somehow it would improve the show and mix up the field. It did neither.
F1 should immediately scrap the format and revert to the previous one. Don’t go back to the drawing board, don’t try to make more changes. Just drop it and we’ll all pretend it never happened. Of all the problems that F1 had leading up to this year, qualifying was not one of them. But now it is. Continue reading “F1 2016: Nevermind the Drawing Board” »
The years 2014 and 2015 were quite a time in the stock market. I cranked some numbers recently to review my market performance over the past two years and came to a certain realization about it, upon which I based the title of this post.
Prior to 2014 my portfolio mainly consisted of 401k mutual funds and I didn’t pay much attention. It would have been a good idea to do so as the market has had a great run beginning circa 2009, and I was a little more than fashionably late to the market as an active investor.
Appreciation vs. Total Return
To be clear, there are multiple ways that market numbers are often bandied about. Sometimes it’s the value of the stocks (or more accurately the price of the stocks). Other times it’s the value of stocks plus dividends received, and which are then reinvested. This is known as total return.
Those figures are theoretically possible to emulate if one is running a large portfolio such that transaction costs are so small a proportion of each trade as to be negligible. Certainly the latter case of total return sets a higher bar. It also reflects a more complete picture. Continue reading “I Did No Better Than the Market” »