Investment Theory

The FAA Inspector as an Investor

Imagine you are an airplane inspector for the FAA.  You job is to certify the flight-worthiness of a plane. You check the planes annually and certify that they are flight-worthy until the next inspection.  This particular day you happen to be flying in the plane you...

Buffett’s Information Advantage: Then vs. Now

When Buffett first started out, he had a true information advantage.  Other investors just didn't know that Sanborn Map had an investment portfolio worth more than the entire market valuation of the company.  This was an incredible opportunity and he took advantage of...

Return on Brain Damage

Hidden Figures is a great movie.  It's a great story about women, but also a story about math.  The continual discussion about the endless calculations (note: these calculations are basically done by hand) that go into sending people to the moon is amazing, truly...

Leadership and Off The Beaten Path Ideas

I want to write about two quick ideas.  I will keep them brief because I hear something slightly more interesting came out this past Saturday morning.  You can read that here. (Buffett Annual Letter) First, leadership matters.  It's difficult to quantify this idea,...

Widely-Followed Stocks and Apple Update

I feel like I've talked a lot in the past year or so about the idea that even well-known companies can get misplaced. One of the posts I wrote was about the concept of edge. Most people focus on trying to gain an information advantage, which I believe is the most...

Thoughts on Cost of Capital – Part 2

This is a big week for earnings with a number of companies I follow reporting their year end numbers. I will write an update that will cover a couple of the current stocks in my portfolio, and I'm also working on a few new ideas that I will discuss in the coming weeks...

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