(Not) Boring Finds for November 2017

by Mawer Investment Management, via The Art of Boring Blog

This month we learn how to spot grey rhinos instead of black swans; about the impending software apocalypse; the necessity of stress testing; why we need self-awareness; and, that Gord Downie is one of the best things about what it means to be Canadian.

CFA Magazine – Do “Gray Rhinos” Pose a Greater Threat Than Black Swans?

Even Sir David Attenborough would probably agree that investors should learn to spot the grey rhino, “[the] highly likely yet ignored threat” in the investing savannah. We appreciated this article’s observation that we mustn’t ignore the obvious and (potentially) big problems right in front of us—i.e., creating a framework for recurring spot checks is a must.

The Atlantic – The Coming Software Apocalypse

We know how to make complex software more reliable, but in many places, we’re choosing not to.

A longer teaser for a longer read: “Software has enabled us to make the most intricate machines that have ever existed. And yet we have hardly noticed, because all of that complexity is packed into tiny silicon chips as millions and millions of lines of code. But just because we can’t see the complexity doesn’t mean that it has gone away.”

Center for Financial Professionals – Reflections on stress testing

A banking executive discusses what he believes are the costs and benefits of the required stress that came out of the Dodd-Frank Act.

“Regulatory imposed stress testing created a great deal of expense, angst, resource redeployment and a pause in growth. However, it also laid the groundwork for the financial industry to identify vulnerabilities and potential for intolerable exposures better than we have before and in time to avoid them in the future. We can do so through idiosyncratic stress tests.”

Big Think – Why We Need Philosophy Camp for Adults

A quick read on one academic’s efforts to help individuals become more self-aware and the many benefits that can follow.

CBCmusic.ca – 5 things you didn’t know about Gord Downie’s Secret Path

We all knew this was coming. Perhaps that’s the evil and silver-lining of a cancer diagnosis (if there can be such a thing)—you get the time to prepare as best you can for a really difficult situation. Maybe Mr. Downie’s final artistic endeavor will also tattoo your soul somehow.

Thanks for the ride Gord, you are a tribute to what it means to be Canadian.

About Mawer

Our belief is that investing is rich in lessons that can be applied to life, and life is rich in lessons that can be applied to investing. Art of Boring considers both. We will share tools, strategies and ideas that will enable you to make better decisions – investment or otherwise.

This post was originally published at Mawer Investment Management