Feed aggregator

John Rekenthaler, longtime Director of Research at Morningstar, recently announced his retirement from a 35+ year career with the article Farewell, For Now. As a regular reader of his “Rekenthaler Reports”, I have respected his clear writings that were often about the uncomfortable truths of investing.

I am old enough to remember when the “5-Star Rating” from Morningstar was the ultimate goal of every mutual fund, as that meant they could place a huge ad inside Kiplinger’s Personal Finance and Money magazines (along with the inevitable other mentions) and wait for the money to roll in. Morningstar still has fund ratings and offers stock picks, but they’ve also evolved their business and to their credit, acknowledged these “uncomfortable truths”:

5-star Morningstar ratings weren’t very useful. Even way back in 2000, the research showed that high past performance did not result in high future performance. The only thing that showed “persistence” were the worst-performing funds. Bad funds stayed bad. From a 2000 article by Jane Bryant Quinn:

John Rekenthaler, Morningstar’s research director, says there’s actually not much difference between mid-ranked funds and top-rated ones. Three-star, four-star and five-star funds have been found to perform pretty much alike, he says.

Still, those funds do better, on average, than two-star or one-star funds. If that’s the case, you shouldn’t worry if your fund moves from level to level, as long as it rates three stars and up.

Low expense ratios matter the most in fund selection. Russell Kinnel was the author of the 2010 Morningstar article How Expense Ratios & Star Ratings Predict Success, but Rekenthaler was also part of that research team and the admission was really big news for that time:

Perhaps the most compelling argument for expenses is that they worked every time–because costs always are deducted from returns regardless of the market environment. The star rating, as a reflection of past risk-adjusted performance, is more time-period dependent. When the market swings dramatically, the star rating is going to be less effective.

Investors should make expense ratios a primary test in fund selection. They are still the most dependable predictor of performance. Start by focusing on funds in the cheapest or two cheapest quintiles, and you’ll be on the path to success.

Doing nothing is often the best investing advice. Could it be that the “Do Nothing Portfolio” could compete and often beat the average mutual fund and even index funds (which still add and remove stocks within their index)? There is a lot of interesting stuff here: More Lessons From the Do Nothing Portfolio.

There is something to be said about minimizing your trading to the absolute minimum. The reason behind making extra trades is often either performance-chasing or panic-selling. Less is often more.

Edges don’t last. From William Bernstein:

Rekenthaler’s Rule: “If the bozos know about it, it doesn’t work anymore.” In other words, as soon as an anomaly is uncovered, it is arbitraged out of existence.

Time IN the game, not timing the game. Rekenthaler even included some uncomfortable truths inside his last article. If he had listened to Jack Bogle and picked the low-cost Vanguard S&P 500 index fund from early on instead of his actual picks (as an employee at Morningstar!), he’d likely be much richer today. But because he still kept investing consistently and mostly in US stocks, he still did just fine. Thus, we should not expect investing perfection from ourselves, either.

Another tribute article: What I Learned From John Rekenthaler

NASA has delayed the launch of SpaceX Crew-10 to late March 2025 to allow time for processing a new Dragon spacecraft, extending the stay of astronauts Butch Wilmore and Suni Williams on the ISS to about nine months. CNN reports: Williams and Wilmore launched to space in June, piloting the first crewed test flight of Boeing's Starliner spacecraft. Their trip, expected to last about a week, ballooned into a monthslong assignment after their vehicle experienced technical issues en route to the space station and NASA determined it would be too risky to bring them home aboard the Starliner. The astronauts have since joined Crew-9, a routine space station mission originally slated to return to Earth no earlier than February after a handoff period with Crew-10. Now, Crew-10 will get off the ground at least a month later than expected because NASA and SpaceX teams need "time to complete processing on a new Dragon spacecraft for the mission," according to the space agency. "NASA and SpaceX assessed various options for managing the next crewed handover, including using another Dragon spacecraft," NASA noted in a blog post on Tuesday. "After careful consideration, the team determined that launching Crew-10 in late March, following completion of the new Dragon spacecraft, was the best option for meeting NASA's requirements and achieving space station objectives for 2025."

Read more of this story at Slashdot.

6 Linux Distros to Watch Out for in 2025  It's FOSS News

AmiViz Partners with Sandfly Security to Deliver Advanced Agentless Linux Security Solutions in the Middle East  Benzinga

AmiViz Partners with Sandfly Security to Deliver Advanced Agentless Linux Security Solutions in the Middle East  Benzinga

AmiViz Partners with Sandfly Security to Deliver Advanced Agentless Linux Security Solutions in the Middle East  Benzinga

AmiViz Partners with Sandfly Security to Deliver Advanced Agentless Linux Security Solutions in the Middle  EIN News

An anonymous reader quotes a report from The Guardian: Montana's top court on Wednesday held that the state's constitution guaranteed a right to a stable climate system and invalidated a law barring regulators from considering the effects of greenhouse gas emissions when permitting new fossil fuel projects. The Montana supreme court upheld a landmark trial court decision last August in favor of 16 young people who said their health and futures were being jeopardized by climate change, which the state aggravates through its permitting of energy projects. The 6-1 decision, the first of its kind by a US state supreme court, came in the first lawsuit to go to trial nationwide by young environmental activists challenging state and federal policies they say are exacerbating climate change.

Read more of this story at Slashdot.

Longtime Slashdot reader timeOday shares a report from CNN: If all goes to plan, Virginia will be the site of the world's first grid-scale nuclear fusion power plant, able to harness this futuristic clean power and generate electricity from it by the early 2030s, according to an announcement Tuesday by the startup Commonwealth Fusion Systems. CFS, one of the largest and most-hyped nuclear fusion companies, will make a multibillion-dollar investment into building the facility near Richmond. When operational, the plant will be able to plug into the grid and produce 400 megawatts, enough to power around 150,000 homes, said its CEO Bob Mumgaard. "This will mark the first time fusion power will be made available in the world at grid scale," Mumgaard said. Virginia Gov. Glenn Youngkin welcomed the announcement, calling it "an historic moment for Virginia and the world at large." The plant would represent a new stage in the quest to commercialize nuclear fusion, the process which powers the stars. But the path toward it is unlikely to be smooth, not least because the technology has not yet been proved viable.

Read more of this story at Slashdot.

Spanish police have uncovered a major clue in the year-long investigation of a missing Cuban man, JLPO, after Google Street View images showed a man loading a body-shaped package into a car and pushing a wheelbarrow with a large white package. These images led to the discovery of the victim's dismembered remains in a cemetery and the arrest of two suspects, including the victim's wife and a bar worker. The Independent reports: Spanish police have said the pictures are a "decisive" clue in case, with detectives reportedly launching a murder investigation and arresting two people in connection with the man's death. According to El Pais, police are still investigating the case -- and it appears neither have yet appeared charged before a court.

Read more of this story at Slashdot.

Longtime Slashdot reader sinij shares a report from Wired with the caption: "This story will be an on-going payday for traffic ticket lawyers. I am ordering one now." From the report: Digital license plates, already legal to buy in a growing number of states and to drive with nationwide, offer a few perks over their sheet metal predecessors. You can change their display on the fly to frame your plate number with novelty messages, for instance, or to flag that your car has been stolen. Now one security researcher has shown how they can also be hacked to enable a less benign feature: changing a car's license plate number at will to avoid traffic tickets and tolls -- or even pin them on someone else. Josep Rodriguez, a researcher at security firm IOActive, has revealed a technique to "jailbreak" digital license plates sold by Reviver, the leading vendor of those plates in the US with 65,000 plates already sold. By removing a sticker on the back of the plate and attaching a cable to its internal connectors, he's able to rewrite a Reviver plate's firmware in a matter of minutes. Then, with that custom firmware installed, the jailbroken license plate can receive commands via Bluetooth from a smartphone app to instantly change its display to show any characters or image. That susceptibility to jailbreaking, Rodriguez points out, could let drivers with the license plates evade any system that depends on license plate numbers for enforcement or surveillance, from tolls to speeding and parking tickets to automatic license plate readers that police use to track criminal suspects. "You can put whatever you want on the screen, which users are not supposed to be able to do," says Rodriguez. "Imagine you are going through a speed camera or if you are a criminal and you don't want to get caught." Worse still, Rodriguez points out that a jailbroken license plate can be changed not just to an arbitrary number but also to the number of another vehicle -- whose driver would then receive the malicious user's tickets and toll bills. "If you can change the license plate number whenever you want, you can cause some real problems," Rodriguez says. All traffic-related mischief aside, Rodriguez also notes that jailbreaking the plates could also allow drivers to use the plates' features without paying Reviver's $29.99 monthly subscription fee. Because the vulnerability that allowed him to rewrite the plates' firmware exists at the hardware level -- in Reviver's chips themselves -- Rodriguez says there's no way for Reviver to patch the issue with a mere software update. Instead, it would have to replace those chips in each display. That means the company's license plates are very likely to remain vulnerable despite Rodriguez's warning -- a fact, Rodriguez says, that transport policymakers and law enforcement should be aware of as digital license plates roll out across the country. "It's a big problem because now you have thousands of licensed plates with this issue, and you would need to change the hardware to fix it," he says.

Read more of this story at Slashdot.

An anonymous reader quotes a report from PCWorld: Smart home devices compatible with the Matter standard have garnered most of our attention lately, but the compelling features in the latest generation of Z-Wave chips convinced the IoT developer Shelly Group to build no fewer than 11 new products powered by Z-Wave technology. The new collection includes a smart plug, in-wall dimmers, relays, and various sensors aimed at DIYers, installers, and commercial builders. Citing the ability of Z-Wave 800 (aka Z-Wave Long Range or LR) chips to operate IoT devices over extremely long range -- up to 1 mile, line of sight -- while running on battery power for up to 10 years, Shelly Group CTO Leon Kralj said "Shelly is helping break down smart home connectivity barriers, empowering homeowners, security installers, and commercial property owners and managers with unmatched range, scalability, and energy efficiency to redefine their automation experience." [...] While most homeowners won't need to worry about the number of IoT devices their networks can support, commercial builders will appreciate the scalability of Z-Wave 800-powered devices -- namely, you can deploy as many as 4,000 nodes on a single mesh network. That's a 20x increase over what was possible with previous generations of the chip. And since Z-Wave LR is backward compatible with those previous generations, there should be no worries about integrating the new devices into existing networks. Shelly says all 11 of its new Z-Wave 800-powered IoT devices will be available in the first half of 2025. The new Shelly devices will be available in the U.S. in the first half of 2025. Here's a list of the devices enhanced with the new long-range capabilities: - Shelly Wave Plug US - Shelly Wave Door/Window - Shelly Wave H&T - Shelly Wave Motion - Shelly Wave Dimmer - Shelly Wave Pro Dimmer 1 PM - Shelly Wave Pro Dimmer 2 PM - Shelly Wave 1 - Shelly Wave 1 PM - Shelly Wave 2 PM - Shelly Wave Shutter

Read more of this story at Slashdot.

The CDC has confirmed the first case of severe bird flu in the United States. NPR reports: Louisiana health officials initially reported the infection last week, saying a person was hospitalized after being exposed to sick and dead birds in backyard flocks. On Wednesday, the Centers for Disease Control and Prevention shared their findings that indicate the H5N1 virus responsible for the illness belongs to a genetic lineage that's circulating in wild birds and poultry -- different from what's spreading in dairy cattle and driving the majority of infections in agricultural workers. In the U.S., more than 60 people have been infected so far, although some research suggests the official tally may be an undercount. The illnesses linked to dairy cattle have largely led to mild illnesses in humans. The version of the virus in the Louisiana case is the so-called "D1.1 genotype." It has previously popped up in poultry workers in Washington state, who developed mild symptoms after testing positive in October. More recently, however, a teenager in British Columbia was hospitalized after contracting this D1.1 strain of the virus. Canadian health officials were unable to figure out how that person was infected. Dr. Demetre Daskalakis with the CDC, told reporters on Wednesday that bird blu has a well-established history of leading to severe illness and death. He added: "Infections without a clear source of exposure do occur, neither these cases nor the cases with known animal or animal products exposure have resulted in human to human transmission." California Gov. Gavin Newsom declared a state of emergency as the H5N1 bird flu virus moves from the Central valley to Southern California herds. The declaration will allow for a more streamlined approach among state and local agencies to tackle the virus, providing "flexibility around staffing, contracting, and other rules to support California's evolving response,'" reports the Los Angeles Times, citing a statement from Newsom's office. "Building on California's testing and monitoring system -- the largest in the nation -- we are committed to further protecting public health, supporting our agriculture industry, and ensuring that Californians have access to accurate, up-to-date information," said Newsom in a statement. "While the risk to the public remains low, we will continue to take all necessary steps to prevent the spread of this virus." Further reading: US Government Orders Nationwide Testing of Milk for Bird Flu to Stop the Virus's Spread Bird Flu Fears Stoke the Race for an mRNA Flu Vaccine

Read more of this story at Slashdot.

According to Bloomberg's Mark Gurman, Apple is no longer developing a hardware subscription service for iPhones that would let subscribers upgrade devices every year. Gurman first reported Apple's work on the service in 2022, noting it was delayed due to "software bugs and regulatory concerns." The Verge reports: While the hardware subscription service apparently won't see the light of day, Apple offers installment plans you can use to pay for an iPhone over time. The iPhone Upgrade Program spreads the payments of a loan for a new iPhone (and AppleCare Plus) over 24 months, and you can upgrade to a new phone after you pay the equivalent of 12 months. If you have an Apple Card, you can also pay for a new iPhone (and other Apple products) using Apple Card Monthly Installments.

Read more of this story at Slashdot.

An anonymous reader quotes a report from TechCrunch: GPS tracking firm Hapn is exposing the names of thousands of its customers due to a website bug, TechCrunch has learned. A security researcher alerted TechCrunch in late November to customer names and affiliations -- such as the name of their workplace -- spilling from one of Hapn's servers, which TechCrunch has seen. Hapn, formerly known as Spytec, is a tracking company that allows users to remotely monitor the real-time location of internet-enabled tracking devices, which can be attached to vehicles or other equipment. The company also sells GPS trackers to consumers under its Spytec brand, which rely on the Hapn app for tracking. Spytec touts its GPS devices for tracking the locations of valuable possessions and "loved ones." According to its website, Hapn claims to track more than 460,000 devices and counts customers within the Fortune 500. The bug allows anyone to log in with a Hapn account to view the exposed data using the developer tools in their web browser. The exposed data contains information on more than 8,600 GPS trackers, including the IMEI numbers for the SIM cards in each tracker, which uniquely identify each device. The exposed data does not include location data, but thousands of records contain the names and business affiliations of customers who own, or are tracked by, the GPS trackers.

Read more of this story at Slashdot.

An anonymous reader shares a report: In preparation for the summer Olympics in 2008, the authorities in Beijing, the host city and China's capital, launched a campaign to teach English to residents likely to come in contact with foreign visitors. Police, transit workers and hotel staff were among those targeted. One aim was to have 80% of taxi drivers achieve a basic level of competency. Today, though, any foreigner visiting Beijing will notice that rather few people are able to speak English well. The 80% target proved a fantasy: most drivers still speak nothing but Chinese. Even the public-facing staff at the city's main international airport struggle to communicate with foreigners. Immigration officers often resort to computer-translation systems. For much of the 40 years since China began opening up to the world, "English fever" was a common catchphrase. People were eager to learn foreign languages, English most of all. Many hoped the skill would lead to jobs with international firms. Others wanted to do business with foreign companies. Some dreamed of moving abroad. But enthusiasm for learning English has waned in recent years. According to one ranking, by EF Education First, an international language-training firm, China ranks 91st among 116 countries and regions in terms of English proficiency. Just four years ago it ranked 38th out of 100.

Read more of this story at Slashdot.

The world's coal use is expected to reach a fresh high of 8.7bn tonnes this year, and remain at near-record levels for years as a result of a global gas crisis triggered by Russia's invasion of Ukraine. From a report: There has been record production and trade of coal and power generation from coal since Russia's full-scale invasion of Ukraine inflated global gas market prices, according to the International Energy Agency (IEA). The IEA said the coal rebound, after a slump during the global Covid pandemic, means consumption of the fossil fuel is now on track to rise to a new peak of 8.77bn tonnes by the end of the year -- and could remain at near-record levels until 2027. The Paris-based agency blamed power plants for the growing use of coal over the last year, particularly in China which consumes 30% more of the polluting fuel than the rest of the world put together. In developed economies such as the US and the European Union coal power generation has already passed its peak, the IEA said, and is forecast to fall by 5% and 12% respectively this year.

Read more of this story at Slashdot.

AMD Preps Many Graphics Driver Updates For Linux 6.14, DRM Panic Support  Phoronix

The U.S. government is urging senior government officials and politicians to ditch phone calls and text messages following intrusions at major American telecommunications companies blamed on Chinese hackers. From a report: In written guidance, opens new tab released on Wednesday, the Cybersecurity and Infrastructure Security Agency said "individuals who are in senior government or senior political positions" should "immediately review and apply" a series of best practices around the use of mobile devices. The first recommendation: "Use only end-to-end encrypted communications." End-to-end encryption -- a data protection technique which aims to make data unreadable by anyone except its sender and its recipient -- is baked into various chat apps, including Meta's WhatsApp, Apple's iMessage, and the privacy-focused app Signal. Neither regular phone calls nor text messages are end-to-end encrypted, which means they can be monitored, either by the telephone companies, law enforcement, or - potentially - hackers who've broken into the phone companies' infrastructure.

Read more of this story at Slashdot.

The US Environmental Protection Agency has granted a pair of waivers to California, allowing the Golden State to continue regulating vehicle-caused air pollution within its borders. From a report: The first is for the California Air Resources Board's Advanced Clean Cars II regulations, which apply to light- and medium-duty vehicles like passenger cars, SUVs, and smaller trucks. The second waiver is for regulations that control the amount of nitrogen oxides (NOx) that can be emitted by heavy-duty vehicles as well as off-road vehicles. The Clean Air Act allows states to apply for a waiver from the EPA to set their own emissions standards in cases where the federal regulations are insufficient to prevent deleterious pollution. The state applied for the latest waivers late in 2023, and after a public comment period and then a review by the agency, the EPA decided to approve them. "California has longstanding authority to request waivers from EPA to protect its residents from dangerous air pollution coming from mobile sources like cars and trucks," said EPA Administrator Michael Regan. "Today's actions follow through on EPA's commitment to partner with states to reduce emissions and act on the threat of climate change."

Read more of this story at Slashdot.