From the perspective of mean reversion, fat tails help to create some of the best opportunities. That is to say, fat tails often create fat pitches.

I attended the M2 Telecommunications AGM yesterday afternoon. I had a couple questions to ask, but before I could Vaughan Bowen addressed them all in his CEO presentation.  M2 well positioned for the NBN roll-out, with an organisation built around the low margins of a re-seller. Speaking of margins Bowen reaffirmed guidance and made it clear they would enjoy margin expansion this year. While that was obvious from their guidance of earnings expanding faster than revenue, it was good to hear that their focus is on profitability. I think that is a distinction that many CEOs …

The pile of documents on my desk was out of control, so it was time for a throw out. Here’s a few of the investing and financial gems I’m throwing out, but want to keep links too.
From Grantham to Klarman on to Gross and Zweig. Articles that I can’t part with.

“The main struggle I’ve had my entire investment life is with the preposterous belief that all information is embedded so quickly and efficiently into stock prices that asset class bubbles cannot possibly occur. But to be honest, I’ve also been pretty irritated by Graham-and-Doddites because they have managed to deduce from a great book of 75 years ago, Security Analysis, that somehow bubbles and busts can be ignored.” Grantham

I think you should be looking at buying LEAP Calls on some of them! Or bull spreads on a group of them.
Take MMM 2011 Calls. Picking one at random without calculating the best strategy:
50 – 70 call spread will cost around $5.50 with profit of $14.50, that’s almost a 1:3 risk reward for a return of SP to $10 less than the -2 line! MMM 25 Year Chart
Heck sell the $40 2011 Put and you’ll get a small credit and the entire upside for the risk of owning MMM at $39.
me …

Withour Hot Air, Jeremy Grantham’s quarterly letter, Security Analysis and New Scientist.

Reading

Tharp “Trade your way to Financial Freedom”. This is my second full read of this brilliant book. I highly recommend Tharp to everyone.  One major takeaway from the book is that most people focus almost exclusively on “entry point”, when that is the least influential determinant in successful investing/trading.
www.thomasnogales.com/emails/2008-12.htm
The funny thing is that I agree with almost everything he says this month and yet I am close to 100% cash invested.
Transcript for Jeremy Grantham http://www.wealthtrack.com/transcript_11-21-2008.php or the video if you prefer. Video of Jeremy Grantham
Recessions, fantastic summary and overview.
The Five …