Benjamin Graham argued that a long-term investor will almost never participate in an initial public offering (IPO) because the animal spirits that are triggered by the IPO will almost never coincide with sensible pricing. Warren Buffett elaborated on this concept by saying that, if there are over ten thousand publicly traded companies in the world, the odds that the best deal out of any of them is the company going public is extremely slim. I think he went even further and said that he has never before invested in an initial public offering on behalf of Berkshire Hathaway.
I have been close attention to Luckin Coffee, the Chinese-based coffee startup that is opening up about 100 new stores across China per month. It is anticipated that it could become the most significant rival to Starbucks because it is rapidly expanding in a country with 1.3 billion people it is currently … Read the rest of this article!
Walter Schloss is on the short list of the most interesting investors I’ve ever studied on Wall Street. He worked under Ben Graham himself, and struck out on his own once he saw the outsized attention that Warren Buffett was receiving under Graham’s tutelage and realized that his best life outcome would result from striking out on his own rather than living under the shadow of what would become the most high-profile investor that the world had ever seen.
Schloss developed an offbeat investment strategy that consisted of buying gobs of cheap stocks (at one point, he owned several hundred stocks in his partnership, causing Warren Buffett to joke that his favorite story from biblical times must have been Noah’s Ark because Walter liked to buy two of everything). He also had rock bottom expense rates for administering his investment strategy. At one point, it was reported that he was … Read the rest of this article!
Add this to the list of things I’ve been thinking about but haven’t reached a conclusion—whether the “fall” of Kelly Blazek is a good thing or a bad thing for our civilization.
For those of you who haven’t followed the news: Kelly Blazek is a professional woman in Cleveland, OH that runs a job bank with over 7,000 contacts. For most of her life, she has enjoyed an impeccable reputation for helping job seekers find work and for being someone whose job has truly improved the welfare of others. Although, until a week ago, 99.99% of Americans did not know who she was, she could go to bed at night knowing that her work made her a net benefit to our civilization.
That reputation took a hit when she encountered a recent college graduate through e-mail named Diana Mekota. Diana had recently graduated from Brandeis, was … Read the rest of this article!