Note to readers: #WeeklyInvestorReader contains a few of the articles I read during the week. Visit my Twitter @HurriCap for any other articles not included. If any of the articles are behind paywalls it may be possible to read them by searching for the article’s title via Google News.
Measuring the Moat (Updated Version) – Credit Suisse, November 1, 2016 | With this updated version Mauboussin & Co. takes a renewed look at topic of moats, i.e., competitive advantages. Sustainable value creation is of prime interest to investors who seek to anticipate expectations revisions, and this report develops a systematic framework to determine the size of a company’s moat. It also covers industry analysis, firm-specific analysis, and firm interaction.
Big Ideas in Social Science: An Interview With Robert J. Shiller on Behavioral Economics – Pacific Standard, October 24, 2016 | The latest in a series of conversations with leading intellectuals in collaboration with the Social Science Bites podcast and the Social Science Space website.
A Great Cost Migration Is Upending the Financial Industry – BloombergView, October 10, 2016 | Like many big asset managers, Janus Capital Group is caught on the wrong side of two powerful trends that are reshaping the financial industry. The first is the wholesale shift by investors from active management of assets to passive investments. The second, related trend is that money is moving from high-cost investments to low-cost investments.
A Mixed Third Quarter for Berkshire – Morningstar, November 4, 2016 | Wide-moat-rated Berkshire Hathaway (BRK.B) released results for the third-quarter 2016 that were in line with our expectations, with weaker results from Geico and BNSF being largely offset by the rest of its operations, as well as the addition of Precision Castparts to overall results. We are leaving our fair value estimate [$255.000 per A-share, $170 per B-share] in place.
Is Apple’s Stock Cheap? Not to My Eyes – Medium, October 27, 2016 | With Apple having reported earnings, Jesse Felder takes an updated look at how this could impact the views of bulls and bears.
Internal Amazon documents reveal a vision of up to 2,000 grocery stores across the US – Business Insider, October 26, 2016 | Amazon wants to open 20 brick-and-mortar grocery stores over the next two years, and the online retailer believes the US market has room for up to 2,000 of its Amazon Fresh-branded grocery stores over the next decade, Business Insider has learned.
Some Comment on the Twitter Buyout Rumours – Bronte Capital, October 11, 2016 | Twitter is wildly addictive. This is well known and there are people who check twitter more obsessively than anyone checked email. Twitter is also a chaotic world full of trolls, useless information, porn-spam and videos of kittens. It is also – as anyone cares to notice – for sale.
Liberty Media: Better Than Berkshire – Barron’s, October 1, 2016 | Led by cable mogul John Malone and CEO Greg Maffei, the nine stocks under the Liberty Media umbrella have delivered, in the aggregate, an annualized 13% over the past decade, compared with 7.5% for Bufftet’s Berkshire Hathaway and 7.7% for the S&P 500.
In-Depth: The Apple Watch Series 2, And What Is And Isn’t A Watch – Hodinkee, October 14, 2016 | An in-depth review of AppleWatch Series 2, and what’s changed from the first version of it and whether Apple Watch really should be considered a threat to the watch industry.
Venture capitalist Marc Andreessen explains how AI will change the world – Vox, October 5, 2016 | Recent breakthroughs in artificial intelligence and machine learning are enabling computers to understand the world and respond intelligently to it. Google is already embracing these technologies for Android, but they’re poised to have bigger implications, touching everything from drones to medical diagnosis. At least that’s the view of Marc Andreessen, a prominent venture capitalist at the firm Andreessen Horowitz.
How Amazon Can Survive Peak Prime – BloombergGadfly, October 27, 201 | Amazon CEO Jeff Bezos is so obsessed with Amazon Prime, he once called it “irresponsible” not to belong to the membership program.Indeed, in recent years Amazon.com Inc. has moved away from an initial strategy of undercutting competitors on price to a laser focus on signing more people up for Prime. Now, that business model could be shifting again.
Medium is the Future: It’s the best platform for both writers and readers – October 27, 2016 | A walkthrough of what Medium is, where it’s going, and where it will fit in social media. Is Medium the new place for bloggers not having a blog, or maybe both?
The Security I Like Best – Warren Buffett, December 6, 1951 | An example of Warren Buffett assigning himself the right right story already back in 1951. The article title “The Security I Like Best” refers to GEICO and contains Buffett’s own views and analysis at the time.
[Article in Swedish] Köp bilen i stället för aktien – Dagens Industri, 2 november, 2016 | Sällan har det varit så viktigt att skilja aktien från företaget som när man närmar sig den hajpade elbilstillverkaren Tesla. För lika bra som bilarna är – lika övervärderad är aktien.
“A reader lives a thousand lives before he dies, said Jojen. The man who never reads lives only one.”
― George R.R. Martin, A Dance with Dragons
Disclosure: #WeeklyInvestorReader contains the articles I read this week, and that enjoyed the most. I am not receiving any compensation for any of the links provided.