All of Ali Merali's Comments + Replies

A No-Nonsense Guide to Early Retirement

Great read; just one thing I'd add re the housing discussion which I think is sometimes neglected is that unlike essentially all other assets everyone is naturally short housing as they're always going to need somewhere to live. As such buying a similar amount of housing as one plans to use in the future (this can also be done via investing disproportionately into housebuilding stocks or buying shares of various properties) can reduce your risk to future price increases (which historically have been large, especially if you value living in cities/desirable... (read more)

3tryactions4moI roughly agree with this. My biggest concerns around buying housing are: 1. The transactional friction of buying/selling homes causes opportunity costs. 2. People tend to buy too much due to low-interest credit. But you correctly point out upsides that I don't dive into.
2CrunchyPeanutButter4moToo often I see discussion of buying a house from purely a mathematical/investment perspective. I agree that the numbers need to be top of mind for this type of purchase... however these discussions neglect the non-tangible aspects of home ownership that are very real and important. Sense of physical security, familial bonding, community involvement - all can be increased with home ownership.
Dissolving the "Is the Efficient Market Hypothesis Dead?" Question

Regarding Ozzie's point above about markets where agents can pay to acquire costly information; this is the famous Grossman-Stiglitz paradox (1980), and indeed the paper concludes that informationally efficient markets are impossible in this setting.

https://en.wikipedia.org/wiki/Grossman-Stiglitz_Paradox