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 – July 2020

The Move From Book Value To Cash Return On Invested Capital 
In the 1930s and 1940s, the discount-to-hard-book-value strategy was dominant. After World War II and into the 1950s, the second major strategy that dominated finance was the dividend model. By the 1960s investors exchanged stocks paying high dividends for companies expected to grow earnings. By the 1980s a fourth strategy took over. Investors began to favor cash-flow models over earnings models. Today it appears that a fifth strategy is emerging: cash return on invested capital. Robert Hagstrom Buffett’s Performance From 1965 to 2002, Berkshire underperformed the S&P 500 in only four of those 38 years (roughly 10% of the […]

What I Have Been Reading – June 2020

Invisible insulation I didn’t spend any time yesterday worrying about being eaten by a grizzly bear. Or that I would get cholera from the water in my house. Over time, we’ve built layers of insulation between ourselves and the world. Shoes make it easier to walk around. We can put one foot in front of the other without constantly scanning for rocks or rusty nails. This invisible insulation is a form of civilization. Seths blog   Finance Is Dead  “Finance is, like, done. Everybody’s bought everybody else with low-cost debt. Everybody’s maximized their margin. They’ve bought all their shares back … There’s nothing there.” Nytimes   Office Space Facebook has joined […]

What I Have Been Reading – May 2020

Commodities Investing Between 1980 and 2019, the world’s population increased from 4.4 billion to 7.6 billion or by 73.2 percent. The time price of commodities fell by 74.2 percent Human Progress   Confounding Expectations People think their personal financial situation will deteriorate but have never been more bullish on stocks: Axios   Ingenuity But what’s funnier about Roy’s friend’s problem (and it was a real problem because of Yelp reviews and angry customers) is that DoorDash priced the pizzas incorrectly. “A pizza that he charged $24 for was listed as $16 by Doordash,” emphasis Roy’s. And then: “My third thought: Cue the Wall Street trader in me…..ARBITRAGE!!!!” And so the […]

What I Have Been Reading – April 2020

Steady: Americans saving for retirement weren’t panicking last quarter even as markets crashed and their 401(k) nest eggs deflated. Only 5.6% of people enrolled in a 401(k) plan changed their portfolio allocations in the first three months of 2020, according to a Morningstar Inc. analysis of more than 635,000 participants. Bloomberg School: Worldwide more than 1.5 billion children are out of school right now.1 This has dramatically increased the need for childcare. In addition, grandparent-provided childcare is now discouraged due to the higher mortality rate for the elderly, and given social distancing measures, sharing childcare with neighbors and friends is very limited also. Thus, most families have no choice but […]

What I Have Been Reading – March 2020

Working From Home Beyond lost creativity and companionship, the gravest threat to many companies from remote work is that it breaks the social bonds that are necessary to productive teamwork. Several years ago, Google conducted a research project on its most productive groups. The company found that the most important quality was“psychological safety”—a confidence that team members wouldn’t embarrass or punish individuals for speaking up. The atlantic   Ingenuity Children were presumably glad to be off school – until, that is, an app called DingTalk was introduced. Students are meant to sign in and join their class for online lessons; teachers use the app to set homework. Somehow the little […]

What I Have Been Reading – February 2020

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
   Fees $1 million invested in S&P 500 in 1942 has become $5.3 billion in 2019.    A 1% annual charge would have reduced the return to half; $2.65 billion.  You might have been robbed of most of the returns if the charges are 2 and 20.    Buffett letter.   Debt By Generation About 41% of eligible Gen Zers, defined as those born in the mid-1990s or later, had a credit card last year, compared to […]

What I Have Been Reading – January 2020

The $2 million Apple Mistake On Tuesday, November 28, 2000, I purchased 500 shares of Apple at 18 1/16 for a total cost of $9,051.25, including a $20 commission. On March 5, 2001, I sold the 500 shares for $20.25 for proceeds of $10,105 after another $20 commission. My short term capital gain was $1,053.75. Apple shares split 2-for-1 in 2005 and split again 7-for-1 in 2014. This means that the 500 shares I sold in early 2001 would be the equivalent of 7,000 shares today. If you take $317 and subtract $1.446 ($20.25 divided by 14) and multiply by 7,000, you get a horrifying $2,209,000! rationalwalk The Cost Of A Franchisee […]

What I Learnt In 2019

A common theme in history is that progress happens too slowly to notice while setbacks happen too quickly to overlook. This is exactly what 2019 feels like. It was a year categorised by far too many negative articles and not enough good ones. So let’s start of this year on a good note by looking at feel good articles from the previous year. And also a few other articles I found interesting during 2019.   Great Things Happen All The Time A collection of 99 feel good stories from 2019. The world is not as bad a place as the news makes it seems. The world keeps improving each and […]

What I Have Been Reading – December 2019

Earnings growth Through Life: For the rich and poor alike, the economists found that “the bulk of earnings growth” happens in the first 10 years of work, typically between the ages of 25 and 35. During the next decade of their career, men can expect smaller raises overall. After 45, those in the bottom 90 percent of lifetime earners see their earnings decline as a group, in part because people often start cutting back their hours around that time, especially if they do manual labor for a living. Meanwhile, even 1 percenters only see relatively minor pay bumps after middle age. Business Insider   The Levels Of Wealth Level 1.  […]

What I Have Been Reading – November 2019

Downsides Of Wealth Being rich does come with some downsides, though. The first thing you are thinking reading that, is, “cry me a river”. That is one of the downsides. You are not allowed to complain about anything, ever. Since most people imagine being rich as nirvana, you are no longer allowed to have any human needs or frustrations in the public eye. Yet, you are still a human being, but most people don’t treat you like one.   ESG Portfolios Eight of the 10 biggest U.S. sustainable funds are invested in oil-and-gas companies … One simple explanation: No asset manager wants to deliver subpar returns. Energy stocks have […]