#WeeklyInvestorReader | wk. 52

Note to readers: #WeeklyInvestorReader contains a few of the articles I read during the week. Visit my Twitter @HurriCap for any other articles that may not have been included. 

How Can I Hurt You? – MicroCapClub, December 27, 2016 | If a competitor had unlimited resources, how quickly could they duplicate the company’s competitive advantage? This is a simple question that I ask myself and management when I try to measure the moat of a microcap company. Microcap companies are small companies and often times vulnerable to larger competitors with more resources. Paraphrased, even further, How Can I Hurt You?, is very powerful.

The Competitive Advantage of Disney – The Conservative Income Investor, December 27, 2016 | In 2012, Disney made an acquisition of LucasFilms for “only” $4 billion. Because the Star Wars franchise has now generated $2 billion in profit in the four years since making the acquisition, many casual commenters are observing that Disney got a steal of a deal.

Alexa, What Should Investors Know About Amazon? – Morningstar, December 28, 2016 | On Dec. 27, Amazon noted that sales of its Alexa-enabled Echo devices increased more than 9 times over last year’s holiday sales, which could imply 4 million-5 million Alexa units sold to date, based on third-party estimates.

The Conjunction Fallacy Explains Why People Believe Fake News – Slate, December 19, 2016 | This fallacy warns that stories with more facts sound more believable, even though they’re actually less probable.

A Half-Dozen Ways to Look at the Unit Economics of a Business – Tren Griffin, December 31, 2016 | Amazon and Netflix are examples of the same value creation phenomenon as are many businesses that John Malone has created over the years. This post will try to help people understand why this is true.

Donald Trump’s market-moving tweets are a huge scandal waiting to happen – Los Angeles Times, December 23, 2016 | An undercurrent of amusement has been detectable in some of the news coverage of Donald Trump’s recent market-moving tweets, as though it serves big companies right to have a few billions stripped off their market values because the president-elect is holding them to account.

The Chevy Bolt Is the Ugly Car of the (Very Near) Future – Bloomberg, December 19, 2016 | With brilliant financial engineering, GM beats Tesla to the punch.

Surging Buybacks Say Stock Boom Isn’t Over – Wall Street Journal, December 26, 2016 | Stock repurchases have spiked in December on expectations of tax cuts, which could put more money in corporate coffers

Glenn Greenberg: the world’s greatest investors – MoneyWeek, December 23, 2016 | Glenn Greenberg was born in New York in 1947, the son of baseball player Hank Greenberg. After studying English at Yale and New York University, he set up Chieftain Capital Management with John Shapiro in 1984. In 2009 they split and he founded Brave Warrior Advisors, which manages nearly $3bn worth of assets.

HOW PHIL KNIGHT BUILT NIKE INTO A $100 BILLION GLOBAL EMPIRE – Maxim, September 29, 2016 | Find out Nike’s high-flying founder became the Sultan of Swoosh.

Are You Solving the Right Problems? – Harvard Business Review, September 29, 2016 | How good is your company at problem solving? Probably quite good, if your managers are like those at the companies I’ve studied. What they struggle with, it turns out, is not solving problems but figuring out what the problems are.

Biggest Billionaire Gainer Of 2016: Warren Buffett’s Fortune Surges More Than Anyone Else In America – Forbes, December 27, 2016 | Shares of Warren Buffett’s firm Berkshire Hathaway soared 20% in 2016, helping to boost Buffett’s personal fortune by $12.3 billion – more than any other billionaire in the United States. The Oracle of Omaha is now worth $74.2 billion, enough to make him the 2nd-richest person in the world (behind only Bill Gates, who is worth $84 billion), according to FORBES’ calculations.

Not Everyone Wants to Shop on Amazon – Wall Street Journal, December 29, 2016 | Roughly 22 million U.S. households didn’t use the retailer this year.

Make the Risk Premium Small Again – Antonio Fatas on the Global Economy, December 29, 2016 | In one my previous posts I looked at the stock market valuations in the US to conclude that they were in line with recent historical data. In fact the stock market looked cheap relative to most years since the mid 1980s. But that was before the US election! Since the election the stock market has gone up and interest rates have gone up as well. How do stock market valuations look like today?

Are mergers good or bad for the economy? – CBS Money Watch, December 29, 2016 | This year sure was a busy one for mergers and acquisitions. In October alone, nearly $490 billion of deals were announced, including AT&T’s (T) purchase of Time Warner (TWX) for $85.4 billion. While that massive telecom-media combination got plenty of headlines, most people pay little attention to mergers between firms, or the acquisition of one firm by another.

The key takeaway from Bill Gates and Warren Buffett’s all-time favorite book – CNBC, December 24, 2016 | “There’s an essential human factor in every business endeavor. It doesn’t matter if you have a perfect product, production plan and marketing pitch; you’ll still need the right people to lead and implement those plans.”

Five industries under threat from technology – Financial Times, December 26, 2016 | Travel agents, manufacturers, insurers, advisers and car repair garages face strain.

Don’t Get Trumped in 2017 – Pragmatic Capitalism, December 26, 2016 | Anyhow, the big trend this year was clear – 2017 will be all about Trump. And as we’ve seen in the media in recent weeks, Trump is perceived as very bullish for the stock market. In fact, a few people even admitted that they’d sold all their bonds and loaded the boat with stocks following the election.

Article in Swedish

Jan Jörnmark: Subventioner orsaken till dysfunktionell bomarknad – Dagens Industri, December 26, 2016 | DEBATT DEL ETT. Under mellandagarna kommer Jan Jörnmark att skriva om bostadspolitiken och dess problem. Ursprunget till dagens situation finns i hyresregleringen från 1942, som också innefattade en kontroll av priserna på bostadsrätter och statligt belånade villor, skriver han i den första delen.

Jan Jörnmark: Sverige har ingen bostadsbubbla – Dagens Industri, December 27, 2016 | DEBATT DEL TVÅ. I del två i serien om den svenska bostadsmarknaden behandlas utvecklingen i storstäderna. Allvarligast är att det som egentligen är en massiv förändring av relativa priser på olika bostäder har kommit att tolkas som en bubbla, skriver Jan Jörnmark.

Jan Jörnmark: Bygglagen uppmuntrar inte bostadsproduktion – Dagens Industri, December 28, 2016 | DEBATT DEL TRE. I den tredje delen i serien om bostadsmarknaden har turen kommit till lagarna som reglerar bostadsproduktion. Följden av dem blir en fortsatt stadsutspridning, med de negativa miljömässiga och mänskliga konsekvenser som det har, skriver Jan Jörnmark.

Jan Jörnmark: Nya lagar vägen framåt för bostadsmarknaden – Dagens Industri, December 29, 2016 | DEBATT DEL FYRA. Den avslutande delen i artikelserien om den svenska bostadsmarknaden handlar om framtiden. Först måste vi erkänna att ”bostadsbristen” är ett efterfrågeöverskott på en viss typ av mycket lågt prissatta centrala lägenheter, skriver Jan Jörnmark.

 

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