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.
50 Of The Best Investing Blogs On The Planet (2017) – The Acquirer’s Multiple, May 29, 2017| Every year Tobias and I sit down to pick out fifty of the best investing blogs on the planet. This list is by no means complete and is certainly not in any particular order. If you’re an investor take some time to read through the great blogs on this list, they’ll provide you with an awesome starting point for your investing education.
Uber, But for Meltdowns – NYMag, May 29, 2017| Sexual harassment, corporate-espionage charges, taking advantage of drivers: The company that practically courts bad PR is in an existential crisis.
Why Is Amazon Building Brick-and-mortar Bookstores?– NYMag, June 1, 2017| Amazon’s first physical bookstore in New York, located in the high-end shopping center at Columbus Circle, was quietly bustling when I visited on a recent muggy spring day around lunchtime.
The Security I Like Best Checklist #Buffett #GEICO – Greg Speicher, June 1, 2017| This simple checklist was produced by inverting Warren Buffett’s classic article on GEICO: what mental or written checklist can we imagine Buffett used to think about GEICO and write the article?
DEAR FELLOW SHAREHOLDERS… Over 30 Years of Value Insights from Martin J. Whitman – Marty J. Whitman, November 10 , 2016| For over 30 years, Legendary Value Investor, Martin J. Whitman, has written comprehensive shareholder letters that provided readers with thorough lessons in his investment philosophy, security analysis and value investing. The collection of excerpts from letters in this book comprise the “best of” Marty’s writings organized thematically to give readers an opportunity to dive into specific topics of interest.
Why the Construction Industry May Be Robot-Proof – strategy+business, May 24, 2017| What gives? Well, there is something unique about housing. Typically, home construction activity is custom work — remodeling, renovation, teardowns replaced by a single home, maybe a few homes built on a cul-de-sac. And it is difficult to gain economies of scale — or to automate processes — when every job, or close to every job, is unique. If every T-shirt were made to order — different sizes, styles, cuts, fabric — it would be very hard to get a $3 T-shirt. Think about the sheer, overwhelming amount of choice people have when building a home: gravel or asphalt in the driveway, 500 different shingle styles to choose from, gas or electric heating, landscaping, appliances, bathrooms, and windows. To be sure, there are plenty of planned developments and apartment buildings built in the U.S. But even here there is a great variation from project to project, and within projects.
When High Yield Becomes Low Yield – Pension Partners, May 30, 2017| In December 2008, as the “world was ending,” European junk bonds hit a record high yield of 25.97%. Forecasts of financial Armageddon were widespread, and few could envision a scenario in which subordinated bondholders would receive anything but pain. But the world did not end in December 2008. And over next five years, European junk bondholders would receive nothing but pleasure, earning a record return of 23% per year. Fast forward to today and we have reached the opposite extreme, with European junk bonds at an all-time low yield of 2.67%.
First impressions of an Amazon bookstore – The Shatzkin Files, May 29, 2017| The new just-opened Amazon bookstore in Manhattan made my wife think of an airport bookstore or a “gallery, where the books are displayed rather than sold”. Everything is faced out. The selection is limited. An airport bookstore would almost certainly have a different mix of titles: far fewer cookbooks (the Amazon store gives them quite a bit of space) and a much bigger selection of novels, particularly genre novels (of which there seemed to be relatively few at Amazon).
Suppliers Bargaining Power – Dr. Andrew Stotz, May 30, 2017| Michael Porter’s five forces analysis is a framework for understanding the degree of competition in an industry. Strong forces drive down industry profitability. The five forces model acknowledges that a company operates in a system of suppliers, customers, and existing competitors. In addition, there is always the threat of new entrants and in some cases substitutes.
Proximate vs Root Causes: Why You Should Keep Digging to Find the Answer – Farnam Street, May 29, 2017| The mental model of proximate vs root causes is a more advanced version of this reasoning, which involves looking beyond what appears to be the cause and finding the real cause. As a higher form of understanding, it is useful for creative and innovative thinking. It can also help us to solve problems, rather than relying on band-aid solutions.
Route to Air Travel Discomfort Starts on Wall Street 584 – New York Times, May 28, 2017| “There’s always been pressure from Wall Street,” said Robert L. Dilenschneider, a veteran public relations executive who advises companies and chief executives on strategic communications. “But I’ve been watching this for 30 years, and it’s never been as intense as it is today.”
Ipsos Global Trends– Ipsos, May, 2017| The Ipsos Global Trends survey is the largest study of its kind, providing a unique snapshot of the world today. It explores the attitudes and behaviours of over 18,000 consumers and citizens in 23 key countries around the world and with over 400 questions, covers everything from tradition to trust, from brands to business, from society to social media and much, much more. Our analysis features both ‘Megatrends’ – the known technology, demographic and environmental changes happening now and in the future – alongside eight global master trends. We also share the full data, which shows trends from our 2014 study along with downloads for additional material.
Were Munger, Dalio and Soros CIA Trained? – Investment Masters Class, May 28, 2017| Mr Fogerty cited “ The Psychology of Intelligence Analysis’ from the CIA’s website by Richards J. Heuer [CIA Book] as guiding his investment principles. Always interested in finding an edge I printed out a copy. I think Mr Fogarty has stumbled across one of the most useful guides an investment analyst could find on improving one’s investment decisions.