Why smart investors read old books. Plus, dividend stocks that beat inflation two ways

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A roundup of investment ideas for active investors

Venture capitalist and finance author Morgan Housel published Read Old Books this week, arguing that investing wisdom written decades ago remains relevant today., which featured interviews with the prominent fund managers of the time and included some timeless advice.

Artificial intelligence is a very recent example of a ‘new technique’ that is currently benefitting Microsoft stock while Alphabet software engineers race to catch up. Hedge fund manager Michael Steinhardt essentially advised against himself, noting that the best investors are not motivated by commissions or subscriptions. In other words, the world’s best investors will rarely be fund managers. The widespread underperformance of mutual funds continues to prove Mr. Steinhardt right.

 

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