Investing
Thoughts

Investing

In investing, it’s often too late to wait till the picture is complete. It will be obvious to everyone else by that point too. To get an edge, start coloring earlier than other people, collect more “dots” than other people, and invest when the picture is 80% filled in and you’re confident in the final outcome […]

Gross Margin
Thoughts

Gross Margin

Gross margin in the banking industry is net interest spread. Net interest spread is influenced by interest rates and demand for loans. It’s cyclical but very stable over a long period of time. Please follow and like us:0

thinking about investment
Thoughts

There are effectively two ways of thinking about investment

At the risk of annoying some people, we shall refer to these as the “Hayekian” and “Keynesian” perspectives. The Hayekian perspective conceives of investment as the adjustment to equilibrium and thus the optimal amount of investment is effectively a decision on the optimal speed of adjustment. A firm may decide it needs a factory (the “capital stock” […]

John Burr Williams
Thoughts

John Burr Williams

Value of an enterprise is the “present worth” of all its future distributions – whether interest or dividends – it “in no [way] depends on what the company’s capitalization is” Please follow and like us:0

Charlie Munger
Thoughts

Charlie Munger

 I never took a business class, except accounting. When I was a boy, there was a man who came to the club every day at 10:30am. I asked my dad about him – he had such a good life! My Dad said, “He gathers up and renders dead horses.” I learned from that. Many businesses […]

charlie munger
Thoughts

Charlie Munger

“Forgetting your mistakes is a terrible error if you are trying to improve your cognition. Reality doesn’t remind you. Why not celebrate stupidities in both categories.” Please follow and like us:0

Clayton M. Christensen
Thoughts

Clayton M. Christensen

“When visionary executives and technologists do see the disruption coming, they frame it as a threat, seeing that their companies could be imperiled if these technologies succeed. This framing as a threat rather than an opportunity is what elicits a resource commitment from the established firms to address the technology. But because they instinctively define […]

Charlie Munger
Thoughts

Charlie Munger

“Some of the worst business decisions I’ve ever seen are those that are done with a lot of formal projections and discounts back…. The trouble is that you get to believe the figures. And it seems that the higher mathematics, with more false precision, should help you. But it doesn’t. The effects, averaged out, are […]

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