As I got into my mid-forties I landed in my own version of a midlife crisis. Instead of getting a 20-year-old girlfriend or a red convertible, I started paying attention to my health.
Socially responsible investing on an institutional level, where one body makes “socially responsible” capital allocation decisions for a pool of investors, is a utopian concept, just like socialism. It is simply impractical.
I am about to embark on my 11th annual trip to Warren Buffett’s Omaha. This year I have something unique to share with you: an excerpt from a chapter I contributed to a brand new book, The Warren Buffett Shareholder. Let me tell you a little bit how this chapter came about.
It is becoming difficult to see how the Model 3 will be the car that leads Tesla to profitability.
GE retaught investors the great lesson that things that cannot go on forever don’t. Hopefully, ExxonMobil investors will heed that lesson.
A big part of Amazon’s success came from not being taken seriously by its competition. But now, fear of Amazon has reached paranoia levels. The laws of economics, however, still apply to Amazon’s announced health care venture.
Don’t let this wave of stock-market volatility go to your head. The value of the companies in your portfolio doesn’t change by a positive or negative 5% three times a day.
Path dependency is a very important concept. It’s something we constantly think about, and thus, we’ll take a small detour to explore it.
Acquisitions have the elements of a zero sum game. Both buyer and seller need to feel that they are getting a good deal. The seller has to convince his board and shareholders that they are selling at high (unfairly good) price. The buyer needs to convince his constituents that they are getting a bargain. Remember, both are talking about the same asset.
We look at options “insurance” the same way we look at any asset: It can make sense at one price but make no sense at another. As you will see, at today’s price they make a lot of sense.