Category Archives for "Uncategorized"

A Lot of Good Things Are Happening but Not According to the News

News media is in the amygdala business. The amygdala is our fear center. Turn on the news. What are they usually talking about? Death, terrorism, financial markets in turmoil. Anything and everything that stimulates your amygdala and fires up your fear response. Regular news media viewers fall prey to the Mean World Syndrome. They believe […]

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Railroad Stocks Will Benefit From U.S. Corporate Tax Cut

Morningstar making the case for a long-term investment in Railroad stocks. One of the big reasons is taxes. The railroad stocks are not multinationals. They only operate in the U.S. and they pay the U.S. corporate tax rate. UNP Effective Tax Rate (Annual) data by YCharts If President Donald Trump does indeed cut corporate taxes, […]

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Always Invert

“Invert, always invert” It is a phrase coined by the mathematician Carl Jacobi and made famous by Charlie Munger. When you want to solve a difficult problem take the inverse. It is the first thing that came to mind when reading about survivorship bias and where to armor allied bombers during WW2. In World War […]

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Latticework of Mental Models

From A Wealth of Common Sense and the two lessons learned from the founder of Patagonia Yvon Chouinard. If you’re an avid reader and follower of Charlie Munger as we are then the second lesson will look familiar. 2. Have an open mind and utilize a wide number of disciplines to solve problems and make […]

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It’s Not Easy

It’s a topic we discussed in the last dividend letter, finding high-quality companies is the relatively easy part about investing. It’s mostly math. Holding onto high-quality companies for the 1,000%+ returns is the extremely hard part. You have to constantly overcome your emotions and biases to stop yourself from selling too early after an initial […]

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12 Lessons Learned From Warren Buffett

From the Financial Times what Seth Klarman has learned from Warren Buffett. Value investing works. Buy bargains. Quality matters, in businesses and in people. Better-quality businesses are more likely to grow and compound cash flow; low-quality businesses often erode and even superior managers, who are difficult to identify, attract, and retain, may not be enough […]

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