For the last several days, I’ve been focusing on the semiconductor industry. That’s because as the market has tested bear market levels, semis have slid further than most other industries the market. That decline represents risk, because the almost overwhelming sentiment about semiconductors seems to be more and more bearish. I also think, however, that if you filter through all the angst and anxiety of that bearishness, you can find some interesting opportunities. More →
When market uncertainty gives way to fear, stocks generally tend to fall, and while the market in the past week has been trying to rebound from lows in December that tested bear market territory for the major indices, the general tone has really focused more on the negative than anything else. If investors and analysts aren’t wringing their hands over trade, then it’s interest rates; and if not interest rates, then it’s global economic growth. Indications this week have mostly been positive on the trade front as officials from the U.S. and China met to discuss a trade deal. This morning, however reports that a breakthrough didn’t happen seem to be giving investors reason all over again to start worrying. More →
This past Saturday, the Woodstock for capitalists was on as Warren Buffett and Charlie Munger held their annual shareholder conference.
If you want to succeed in investing and reach your financial goals, this conference and the insights from it are all you need to listen to in order to learn about investing, what’s going on, and what to do about it.
In today’s article, I’ll summarize what the key points to take out are and also save you the 6-hour watch.
Introduction
Most of you are familiar with Warren Buffet’s comment on the airline industry in his 2007 letter to shareholders:
“The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.”
Now, most connect the above statement only to the airline industry. However, in a deflationary environment where our youngsters expect lots of things for free—think WhatsApp—and extremely low interest rates, there will be more industries where shareholder wealth creation will be difficult to achieve.
In today’s article, we’ll define and analyze some of these industries. More →
Introduction
Warren Buffett’s most commonly referenced piece of advice is to buy a good business with a large moat at a fair price and hold it forever. This is easier said than done as in today’s complex world, moats become stronger and weaker at the same time. More →