The Earth is almost the best planet ever. Unfortunately, you can’t be the best planet ever when your clearest defining characteristic is a revolting worldwide bug infestation. On what’s not that big a planet, there are 10 quintillion bugs, or 1.5 billion bugs for every living human.
When people finally outgrew the ancient belief that luck and wealth were one and the same entrepreneurship became possible, and hubris became an epidemic. As almost everyone came to believe that he or she could make a fortune ...
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Thursday, October 29, 2020
It is clear that Berkshire is a far better business than is the S&P 500 index as a whole. Its value is growing far faster, and the only way the index managed to keep pace with the price of the Berkshire share is that investors pushed the index’s price ...
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Wednesday, October 28, 2020
“I personally think that indexation, which has really been a 20-25-year phenomenon in terms of raising assets and becoming unquestionably the dominant investment strategy, is just about ready to come to its end,” says Murray Stahl ...
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Tuesday, October 27, 2020
The fundamental error in defaulting to low valuation is best explained if one imagines the stock market as a retail store. You speak to the salesperson and they say to you, “OK, we have 1000 different things you can buy. These 800? They’re all ...
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Thursday, October 22, 2020
Quality is seductive. Few would complain if you labelled their business or strategy as ‘quality’. But as Mr Drucker (the father of modern management theory) points out it’s also elusive and ambiguous. You may know it when you see it, ...
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Wednesday, October 21, 2020
“It’s always tempting at a time of upheaval to imagine that society will be changed forever,” says Seth Klarman, CEO of the Baupost Group, in a letter to Limited Partners. “In the depths of the 2008-2009 financial crisis, it was easy to imagine ...
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Tuesday, October 20, 2020
Bias from liking distortion, including the tendency to especially like oneself, one’s own kind, and one’s own idea structures, and the tendency to be especially susceptible to being misled by someone liked, and not to learn from someone disliked.
When confronting something which may be either a windmill or an evil giant, what question should you be asking? There are some who ask, "If we do nothing, and that is an evil giant, can we afford to be wrong?" These people consider themselves brave and vigilant. Some ask "If we attack it wrongly, can we afford to pay to replace a windmill?"
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