Morning Reads

1. MEAN REVERSION: THE MISUNDERSTOOD “MYSTERY METHOD” BEHIND BIG MARKET BLUNDERS

2. Einhorn Says Don’t Be Fooled as Companies Beat Estimates

3. Facebook Values WhatsApp Like Miracle Drug: Real M&A: $19 billion buyout.

4. Remember George Goodman, aka, "Adam Smith" of the Money Game. http://blogs.wsj.com/totalreturn/2014/02/17/remembering-adam-smith/

"If you are not automatically applying a mechanical formula, then you are operating in this area of intuition, and if you are going to operate with intuition – or judgment – then it follows that the first thing you have to know is yourself. You are — face it — a bunch of emotions, prejudices, and twitches, and this is all very well as long as you know it…. A series of market decisions does add up, believe it or not, to a kind of personality portrait. It is, in one small way, a method of finding out who you are, but it can be very expensive. That is one of the cryptograms which are my own, and this is the first Irregular Rule: If you don’t know who you are, this is an expensive place to find out.

- The Money Game (1968 edition, p. 26)"