Stock market index value and lean development
We look at the risk-adjusted returns of stock investments and how they compare to other instruments. We also learn a neat way to phrase the purpose of lean development.
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New articles
Do Stonks Go Up?
In Smart Portfolios, Carver offers a very clear argument for why the risk-adjusted returns of all-stock portfolios are equivalent to those of e.g. all-bond portfolios. The histogram of differences in risk-adjusted returns comfortably straddles zero – no statistically significant difference. The correct response is to diversify to increase geometric growth, even at the cost of arithmetic growth.
Full article (5–15 minute read): Do Stonks Go Up?
Flashcard of the week
I still haven't written that article on Lean Product and Process Development by Ward, but here's a flashcard from it anyway.
Lean development lets you focus on creating value instead of what?
If you're familiar with lean as a more general concept, you might be able to guess the answer:
Managing waste.
A lot of work that happens in development organisations and bureaucracies is waste management. Paperwork and other stuff that no customer ever asked for is produced because someone thought it might be a good idea, and then someone else must work to take care of it: file it in the right place, update it, migrate it, remind others to read it, coalesce it with other stuff.
Lean development is, then, opting to not do that. Focus on what the customers ask for. Do that.
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