Ramblings

Happy Hour: Marks on Cycles

If you’re not listening to the Masters in Business podcast, you’re missing out. The podcast has become a free, weekly course on investing, business, psychology, and more. I set aside time some time each week to listen. If you have any interest in learning more, subscribe and do the same. You won’t regret it.

This week’s guest teacher was Howard Marks. Marks is one of the most followed people in the industry because of his Memos. Continue Reading…

Happy Hour: Munger on Cash Hogs

I ran across a PDF where Charlie Munger explains the important difference between companies that make more money than they know what to do with (cash cows) versus companies that always need cash to maintain growth (cash hogs).

So cash cows are obviously better than hogs. And the best cash cows have some type moat – pricing power, economies of scale – and a great capital allocator. See’s Candy is a good example. Continue Reading…

Happy Hour: China Rout

In the last post, I mentioned that China’s stock market is in freefall since about the middle of June and how it would be a great case study in investor behavior.

My lack of elaboration caused some confusion around the statement and the chart. So I thought I’d clear one thing up – the MSCI China Index is very different from China’s stock market.

Continue Reading…

Happy Hour: Serial Compounder

I’m posting this a day early because I’m getting a jumpstart on the holiday weekend. Yesterday, I watched a Talks at Goggle video (embedded below) on Tom Gayner. Value investors out there might recognize the name.

Gayner is the CIO of Markel Corp, an insurance company modeled after Berkshire Hathaway. In the video, Gayner talks about his story, how he evolved as a value investor, and what he looks for in a company. He offers up his four points on what he looks for: Continue Reading…