Morgan

LOL

RIP. Very sad. https://www.bloomberg.com/news/articles/2023-11-28/charles-munger-who-helped-buffett-build-berkshire-dies-at-99

True

This OpenAI and Altman saga was crazy to watch. I have never seen 95% of employees threaten to resign after a CEO being let go. I don't remember a CEO coming back with a new board either. Pretty nuts.

I've been waiting for this and this was nuts. More and more progress with every launch! Pretty soon there are gonna be 1000 people on the way to Mars every week, plus supply launches and eventually developments in the solar system. This century is going absolutely incredible!

Now that would be something!

Incredible work Viking! Thank you for sharing!

Ordered Dynasties of the Sea, 2nd Edition. Looking forward to it. Thanks for recommending!

@vinod1 Great post Vinod. Totally agree. I don't use DCF now, but I did in my finance classes during undergrad so I learned the nuances of it. Even though I don't use it now, it has some relevance.

Gotcha. Thanks for confirming. Kind of jarring to see a Trump blurb on there. 2012 was a different time in politics...

@Saluki Just to confirm this is the correct book for Dynasties of Sea? Dynasties of the Sea: The Shipowners and Financiers Who Expanded the Era of Free Trade by Lori Ann Larocco from 2012 It has a blurb on the cover form Donald Trump? There is also a second edition from 2018 that covers PE/hedge funds entrance into the industry.

Ha! Yep!

@keegomaster After looking at it more, this was exactly what I was looking for. Thank you!

I am traveling today, so I only looked briefly but I think that is exactly what I’m looking for! Thank you!

Hello, I am looking for a website that shows the approximate valuation of different industries over time. Perhaps by what the average PE, or EV/EBITDA (or any other approximate valuation measure) over preferably for the last 20 years. It would be great if it was an interactive chart that showed all industries and I could turn each one on and off as needed. I'm looking to see what sectors are generally undervalued vs overvalued over time. As sectors become cheap, I'd like to begin to look at specific companies. Thanks in advance! Morgan

Came across this today. Really enjoyed it!

Thank you for sharing. I really enjoyed reading this.

That is a pretty thorough roast lol

Wow! That must have been incredible!

I don't listen to too much EDM, but this performance is so cool. EDM with people playing instruments and floating stages and a huge audience. I wish I could have gone to this!

This is absolutely correct. 12% vs 15% is a huge difference after 30 years. This is a classic quote from Munger.

Totally agree!

Bump. I'm interested in learning more as well.

It's hard not to be surprised by these guys slow behavior. They've done so well, for so long, that going fast doesn't change much in the tobacco world. They obviously missed that the tech world is much different. Sounds like a good book!

@ElstonG, @ValueMaven I read through Combs essay and it was good. It was essentially an outline of his research process. See my notes below. Find a good business Quantitative - What is the competitive advantage or moat? He starts with reading SEC filings, 10Ks and Qs, and trade magazines. Don't bother with management narratives or sell side reports. He says, ROIC is usually a reliable shorthand for the quality of a business. Use 10 years of data to see how earnings power has changed over time. Has the company's retained earnings been flat for ten years, but the debt has increased? That means the company needs to run harder just to stand still. Are the accounting practices aggressive or conservative? Is the debt all short term, or long term fixed? Qualitative - scuttlebutt to see what the company culture is really like, and to see how the company's products are really selling now. Good management Look at management and assess their record. He says, "you cannot make a quantitative deduction to allow for an unscrupulous management; the only way to deal with such situations is to avoid them". (Sardar anyone lol). Is the CEO all promotion or working on the business daily? Good capital allocation is crucial. Review the proxy statement over time to understand management incentives. Speak to former executives to see how the company culture is. Buy at a good valuation The price from the past doesn't matter. Only what matters is the fundamentals compared to the current financial community's appraisal of the stock. A note on compounding - a three fold increase in compound rate (5% to 15%), leads to an almost twentyfold increase in returns over 30 years. I'll try to add more notes from the book as I read more. Morgan