Aesop and Inefficient Bush Theory
Article

Aesop and Inefficient Bush Theory

The formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.). The Oracle was Aesop and his enduring, though somewhat incomplete, investment insight was ” […]

Leonardo da Vinci
Article

Leonardo da Vinci: How to See the World Like Nobody Else

When the word “Renaissance” is spoken, no one comes to mind faster than da Vinci. Not only was he the embodiment of an artist, but he was also a prolific inventor who contributed to everything from architecture and music to anatomy and geometry. He simply watched, noted, and contextualized things as he saw fit. It wasn’t like […]

Reading and Thinking
Article

Reading and Thinking

Mortimer Adler believed that reading is a conversation between you and the author. On this Schopenhauer comments- Reading and Thinking When we read, another person thinks for us: we merely repeat his mental process. It is the same as the pupil, in learning to write, following with his pen the lines that have been pencilled by the teacher. […]

Think independently
Article

Business and Investing Lessons from Lou Simpson

“Portrait of a Disciplined Investor,”- Business and Investing  “Investors are going to make out a whole lot better if their whole emphasis is on owning businesses.” “Even the world’s greatest business is not a good investment, if the price is too high.”  “When you ask whether someone is a value or growth investor – they’re […]

Objective and subjective
Article

Objective and subjective aspects of reality

Objective and subjective aspects of reality Reflexive feedback loops have not been rigorously analyzed and when I originally encountered them and tried to study them, I ran into various difficulties. The main source of the trouble was that thinking is part of reality and the relationship of a part to the whole is very difficult to describe. […]

monopolist
Article

Progress comes from Monopoly, not Competition

The problem with a competitive business goes beyond lack of profits. Imagine you’re running one of those restaurants in Mountain View. You’re not that different from dozens of your competitors, so you’ve got to fight hard to survive. If you offer affordable food with low margins, you can probably pay employees only minimum wage. And […]

Joel Greenblatt
Article

Business and Investing Lessons From Joel Greenblatt

For a value investor, value is determined using methods that produce a fuzzy but very important benchmark, which is called “intrinsic value.”- Joel Greenblatt “One of the greatest stock market writers and thinkers, Benjamin Graham, put it this way.  Imagine that you are partners in the ownership of a business with a crazy guy named Mr. […]

Adam Smith
Article

Back to Basics I: Adam Smith

The idea of a higher standard for professionals is not new. So, let’s go back in history to learn from the wisdom of our predecessors. We will start in 1759 with Adam Smith, then on to 1949 and Benjamin Graham, and finally, if you will, to the investment philosophy that I have developed during my […]

Leonard
Article

Business Lessons from Mark Leonard

Leonard is an investor who uses “value as an analytical style” to buy businesses that sell software to vertical markets.- Mark Leonard Like Buffett, Leonard think about moats, uses return on invested capital as a touchstone, prefers concentrated investments to diversification and likes it when assets he wants to own for a long time “go on […]

COMPETITIVE STRATEGY
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FRAMEWORKS FOR ANALYZING COMPETITIVE STRATEGY

Five Forces – Industry Analysis- COMPETITIVE STRATEGY Michael Porter’s five forces framework is useful for competitive analysis because industry structure plays a major role in shaping competitive strategies. It is especially useful for those businesses with the following characteristics: Defined boundaries, wherein buyers, suppliers and competitors can be identified easily. Mature and stable industry structure, where […]

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