Category Archives : Reading

What I have Been Reading.

A collection of interesting articles I have come across during the past month.

What I Have Been Reading – April 2021

Stock Market Crashes During Economic Booms The higher real GDP growth goes, the higher average annual stock market returns tend to go. The highest growth with a down stock market came in 1941 when GDP was up double digits year over year while the S&P 500 finished the year down almost 11%. This was an instance in which investors were spooked from World War II. Otherwise, stocks have generally seen strong returns when economic growth is so high. In seven out of the 11 years when real GDP growth was 8% or higher, the stock market was up double digits. So it’s relatively rare for the stock market to fall […]

What I Have Been Reading – March 2021

Valuations Not giving a damn about current income is the secret formula that sets you free from all terrestrial bounds of physics and logic. The way you pull it off is by executing on growth at any cost (GAAC?). Profits can come later once the market share battle is already won. Shareholders are willing to wait. And why wouldn’t they be patient. None of the money is costing anyone anything. The Reformed Broker     Market Leaders We were buying Yahoo 15 years ago instead of Google, because Yahoo had a bigger market share, they had a bigger moat, and it was a lot cheaper than Google. We were buying […]

What I Have Been Reading – February 2021

Banking Error The recipients of roughly $500m (£360m) that US banking giant Citigroup wired erroneously will get to keep the money, a US judge has ruled. Judge Jesse Furman said Citi was not entitled to recoup its funds, even though they were “indisputably transferred by mistake”. The bank was supposed to have sent interest payments on behalf of its client, Revlon, but instead fully repaid the cosmetic company’s loans. BBC     Snap chat money Andrea Romo, 27, earns $12.50 an hour as a merchandise associate at Lowe’s in Albuquerque. She doesn’t consider herself a social media influencer, but has enjoyed sending messages to friends on Snapchat for years. When […]

What I have been reading – January 2021

Gamestop frenzy The reddit campaign to push its stock up started two months ago. At first shares rose a little. That caught people’s attention, those people bought, which pushed prices up more, which caught more people’s attention – on and on – until this week when virtually every investor in America is paying attention to GameStop because it’s risen so high, and it’s rising high because every investor in America is paying attention to it. I have three friends who bought a few shares of GameStop this week “to see what happens.” They’re only doing that because the price went up. And they’re making the price go up. Collaborative Fund […]

What I Learnt In 2020

Great Things Happen All The Time A collection of 99 feel good stories from 2020. The world is not as bad a place as the news makes it seems. The world keeps improving each and every day and life gets better.     How To Get Wealthy My simple secret of getting rich that is available to all is – start early, spend less than you earn, and invest that surplus well for the long run. Safalniveshak     Buffett’s Secret Is Time Everything worthwhile in investing comes from compounding. Compounding is the whole secret sauce, the rocket fuel, that creates fortunes. And compounding is just returns leveraged with […]

What I Have Been Reading – December 2020

Software Ate The World Software ate the world and hardware has been struggling to keep up recently. Now the largest software companies are slowly becoming hardware companies and pursuing an integrated strategy that only can be achieved at the largest scale possible and with barriers of entry that are quickly expanding in addition to their well-known network or aggregation effects. The walls are slowly rising, the moats slowly widening, and as we are on the cusp of a new hardware renaissance, the decisions the hyperscalers make now are going to have a long-lasting competitive shadow. Stay tuned. Mule.substack   Two Different Recessions ‘Some people are sitting there with piles of […]

What I Have Been Reading – November 2020

Time Billionaire The concept of being a time billionaire is truly profound. “When I see 20-year-olds – the thought I had was they probably have two billion seconds left. But they aren’t relating to themselves as time billionaires.” Twitter     Airpods If Apple AirPods was a standalone business (founded 2016, $12bn revenue, 125% growth, 30–50% margin), it would probably be the most valuable startup in the world. Kevin Rooke     Storytelling All of the ten best-selling books of the last decade had female protagonists Bloomberg     Facts vs feelings During the seventeenth century, Davies argued, intellectuals hit upon the idea that feelings were deceitful, an impediment to […]

What I Have Been Reading – October 2020

Apples Search Engine Apple now receives an estimated $8 billion to $12 billion in annual payments — up from$1 billion a year in 2014 — in exchange for building Google’s search engine into its products. It is probably the single biggest payment that Google makes to anyone and accounts for 14 to 21 percent of Apple’s annual profits. NYTimes   Bureaucracy Of The Big Firm Sears’s widely trusted appliance brand, Kenmore, was divided between the appliance division and the branding division. The former had to pay fees to the latter for any transaction. But selling non-Sears-branded appliances was more profitable to the appliances division, so they began to offer more prominent […]

What I Have Been Reading – September 2020

What People Want People don’t buy products, they buy transformations. From overweight to fit. From dumb to smart. From incompetent to competent. From poor to wealthy. From timid to confident. Figure out what you’re transforming. Twitter   Growth Investing Unlike in real estate or in professional sports, in the stock market people seem to get mad when high-growth companies are selling at premium valuations. They get almost indignant about it. How dare you, sir! I don’t understand it. You’re not better than someone who is willing to pay 20x revenues for Zoom. Or 100x earnings for Netflix. Or 500x thin air for Roku. Finding bargains is not more respectable than paying […]

What I Have Been Reading – August 2020

The Truth Is Paywalled But The Lies Are Free 
But let us also notice something: the New York Times, the New Yorker, the Washington Post, the New Republic, New York, Harper’s, the New York Review of Books, the Financial Times, and the London Times all have paywalls. Breitbart, Fox News, the Daily Wire, the Federalist, the Washington Examiner, InfoWars: free! Current Affairs   Faulty prediction Just before the crash of ’29, I heard a young man declaring that the bull market still had a long upswing ahead because increased use of machinery enabled manufacturers to produce goods so cheaply that they could find markets among groups of people who formerly […]