It turns out that the authors of "Wages of Wins" have a blog! As we noted yesterday, "Wages of Wins" is the book reviewed for the New Yorker by Malcolm Gladwell. The authors claim to have derived a new algorithm for evaluating the quality of professional football and baseball players. The problem with the algorithm is that it overweights rebounding so much that it produces some weird results: claiming Dennis Rodman was a better player than Michael Jordan, for instance.
There's plenty more on the Wages of Win blog, though, and Steve Sailer is already there trying to start a conversation with them in the comments section.
Meanwhile, Abnormal Returns is using the occassion to spell out some thoughts on investing.
Arbitrary algorithms is a good description of the way many investors go about identifying trades. Frankly, many are lucky if that have an alogorithm beyond the "seat of their pants." While that may work for some from time to time that is not a durable, long term strategy.
Long term investment success is ultimately driven by embracing greater rigor in one's investment process. Some investors were able to acquire this over time and through (costly) trial and error. In this day and age however the introduction of cheap data and even cheaper computing power frees us up to explore financial data in ways unimaginable only a decade ago.