Sure enough, as soon as I started writing, I realized it will be somewhat hard to explain simply and I will need to explain in clear terms the meme "you need 16x the observations to estimate interactions", and it will 10-20 pages long. But it will be worth it.
Gappy (Giuseppe Paleologo)
Gappy (Giuseppe Paleologo)Oct 17, 2025
I am thinking of writing a note full of spite and thunder about the practice of intersecting stock characteristic (i.e., let us select stocks that are high mtmo, high profitability, and low short interest). It’s a popular practice. You should not do it. I’ll probably restrict circulation of the note.
Which brings me to a free easy recommendation. If you want to *persuade* someone, it's good practice to write a note/essay/whatever in which you try to *explain* to that someone you reasoning. The persuasion should come for free. It's the opposite of X's mode of communication.
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