Tag Archives: Influential Reads

Influential Reads – November 2021

Reading Time: 2 minutes

“Writing is often the process by which you realize that you do not understand what you are talking about.” – Farnam Street

My reading and writing was lacking this month.  But that is just where I was.

Here are my most influential reads – in no particular order:

  1. The Man Who Called Bullshit on Uber – ” Companies that move people and things make money by closely controlling their workers and physical assets.”
  2. Are the New ‘Buy Now, Pay Later’ Services Good? – “If you’re not sure who’s funding the bottom line, Lowry told me, it’s probably you, in one way or another.”
  3. How Mormons Became American – “Mormons didn’t become avatars of a Norman Rockwellian ideal by accident. We taught ourselves to play the part over a centuries-long audition for full acceptance into American life. That we finally succeeded just as the country was on the brink of an identity crisis is one of the core ironies of modern Mormonism.”
  4. The Winds of Change – “In other words, in this extreme example, a U.S. president can be elected with just 47.0 million votes (22.0% of the total) versus 166.9 million for his or her opponent.”
  5. The CEO of you – “Big company CEOs get paid ridiculous amounts of money, but the good ones also do something that most of us avoid.  They make decisions.”
  6. Inflated – “And this ability to raise prices faster than inflation is really impressive given the industry is one of the most heavily subsidised in the U.S.”
  7. The Great Salt Lake Is Desolate. It’s Also Divine. – ” More disturbing is the destination of some of that water: my house. “
  8. Reset – “But some of it will flood the bank and brokerage accounts of the sort of people who are collecting jpegs of crudely drawn rocks and apes and other useless bullshit. I know, I don’t get it, blah blah blah. “
  9. Shortages are Unmeasured Inflation – “In the meantime, just remember that with inflation over 5% presently and shortly headed above 6%…the inflation rate is understated, and we know that because there are lots of shortages.”
  10. Johnny and Angel Collinson: Skiing comeback – “If somebody wants to explore their potential, whether it’s in sport or otherwise, that means they are going to walk into uncharted territory,” says Dr Gervais

Note: This is based on when I read the article, not necessarily when it was first published.  Unfortunately, my backlog of things I would like to read always seems to dwarf the amount of time I can devote to reading.

Top clicks across the site last month:

  1. Financial Model vs. Operating Model
  2. Influential Reads – October 2021
  3. I Didn’t Approve That
  4. Rules of The Game
  5. EBITDA Is Not A Good Proxy For Cash Flow

Updated stats through November:

Read ArticlesBooks
January654
February491
March643
April532
May970
June542
July1061
August1032
September1192
October911
November800
December
Total88118

Influential Reads – September 2021

Reading Time: 2 minutes

“A man got to have a code.”  – Omar Little

Seriously?  Look at the chart on the right.  Talk about recency bias.  

Folks are in for a rude surprise at some point in the future if they thought September was a rough stretch.  That’s not a prediction of a near term melt down.  It is simply an observation about investor behavior and memory.

Finally finished Principles by Ray Dalio.  More to come here, but in short, I tried to read this book about 24 months ago and was just not in the right headspace apparently.  This time around, I really enjoyed it.  But it took some time and effort, in a good way.

Here are my most influential reads – in no particular order:

  1. Boxes, trucks and bikes – “However, there’s also another way to split this, that I think is becoming increasingly important – instead of looking at the product category and the buying journey, look at the logistics model. “
  2. Business History with Gary Hoover – “The whole history of business and the economy is a story of one technological disruption after the other.”
  3. When Over-Ordering is More Than Hoarding – “So that customer who is ordering a lot more right now than they historically have is not doing it to “hoard.” They’re probably doing it just to manage inventory properly.”  See this as well.
  4. Put These Charts on Your Wall – “The market doesn’t have to do anything, least of all what you think it should do.”
  5. How To Escape Your Financial Cocoon – “Transient events constitute our experiences. Viewing them as permanent compounds our problems.”
  6. Worry About Yourself – “Somewhere along the way I think people forgot that we’re only in the market to make money…If others want to blow themselves up trading recklessly, let them.”
  7. 5 Ways to Build Resilience and Conquer Adversity – “Resilience is the ability to create positive adaptations to negative events.  It’s the ability to take things like anger and sadness and make them useful and productive.”
  8. The fraught future of recycling – “Despite the heavy machinery and increased automation involved, the process is still extremely dependent on humans.”
  9. Distribution and Demand – “Whereas AT&T competes for customers in a zero sum game, content is best leveraged by reaching as many customers across as many distributors as possible”
  10. The Intel Opportunity – “Massive demand, limited suppliers, huge barriers to entry. It’s a good time to be a manufacturing company. It is, potentially, a good time to be Intel.”
  11. A Tunguska sized airburst destroyed Tall el-Hammam – “We present evidence that in ~ 1650 BCE (~ 3600 years ago), a cosmic airburst destroyed Tall el-Hammam, a Middle-Bronze-Age city in the southern Jordan Valley northeast of the Dead Sea.”  SMS here: Talk about wrong place, wrong time…

One more than normal because I could not decide.  My blog, my rules…

Note: This is based on when I read the article, not necessarily when it was first published.  Unfortunately, my backlog of things I would like to read always seems to dwarf the amount of time I can devote to reading.

Top clicks across the site last month:

  1. Financial Model vs. Operating Model
  2. EBITDA Is Not A Good Proxy For Cash Flow
  3. Family Adventure: Grand Teton #3
  4. Operating Model Tips
  5. Excel Template: Football Field Chart

Updated stats through September:

Read ArticlesBooks
January654
February491
March643
April532
May970
June542
July1061
August1032
September1192
October
November
December
Total71017

Influential Reads – August 2021

Reading Time: 3 minutes

“No one values inflation protection because inflation has declined for 42 years.”  – Barrons

There are a lot of things going on right now that seem normal, because they have been going on for so long, no one remembers otherwise.  I’m not saying the market is going to crash imminently.  I am saying that it seems like most people cannot remember the last time that happened, that didn’t turn into a BTFD moment three days later.  And if the market does correct for more than three days, you will see fewer articles advising investors to be 100% in stocks.  Somebody smart once said, “But as long as the music is playing, you’ve got to get up and dance. We’re still dancing.” (https://www.fool.com/investing/general/2009/11/25/the-10-dumbest-banker-quotes-of-all-time.aspx)  Oh wait, no one thinks that was a smart thing to say anymore.  At some point in the future, the risk will be an important part of risk adjusted returns again.

I added two more books to the list this month, but GoodReads is informing me that I am four books behind schedule of reaching my goal of 30 for the year.  However, GoodReads has never seen me binge read Carl Hiaasen.

Lots of articles again this month.  Maybe not a good thing.  The news is not so positive these days, so probably should spend a bit less time there.

Here are my most influential reads – in no particular order:

  1. Get Ready for a Shift Away From U.S. Stocks – “We’ve already had 12% dollar depreciation since last April. And investors are way too exposed to the U.S. Our valuations versus every other asset class on Earth, with the exception of North Asia, are incredibly extreme, and the dollar’s overvalued.”
  2. How To Be Successful – “In a world where almost no one takes a truly long-term view, the market richly rewards those who do.”
  3. Advice to Grads: Be Warriors, Not Wokesters – “Be a highly skilled, devastatingly strong warrior who exerts their power by example and leaves their weapon in its sheath. Forgiveness is strength. Demonstrate it, every day. Be a warrior, not a wokester.”
  4. Give Your Brain Some Breathing Room – “I suggest the following compromise: check in on the news for 45 minutes, once a day, preferably in the morning.”
  5. The Most Important Number in Personal Finance – “The reason I prefer the LWR to something like income or net worth is that it controls for both the stock and the flows in your personal finances.  Your net worth is a stock (i.e. a snapshot of your accumulated wealth) while your income is a flow (i.e. a measure of how your wealth is changing through time).  They are both great, but limited.  ” Stephen here: This was an informative exercise.
  6. Howard Marks on economic growth in a ‘low return world’ – “We’re in an asset bubble. It’s everything. It’s not particular to high-yield bonds, or to bonds, or stocks. It’s real estate, it’s private equity, it’s everything. “
  7. Is valuing SaaS stocks a special form of the Petersburg Paradox? – “But the point is for individual stocks, there can be handful of stocks that can be valued at multiples so high that defies any logic, and still be able to beat the benchmark. The Petersburg Paradox is perhaps indeed the perfect description for such companies.”  Stephen here: But my guess is that most of the companies are not the companies that defy the logic.  Amazon twenty years ago. Yes. Every SaaS business out there today. No.
  8. Companies and Families Are Loading Up on Debt. It Could Be a Dangerous Trend – “What’s also surprising is that the BNPL model goes against perceptions that consumers are flush with savings, fostered by uninterrupted income for those who continued working during the pandemic and government stimulus payments to those not so fortunate, combined with the spending constraints during lockdowns.” Stephen here: There. Is. So. Much. Money. Every. Where.
  9. An Oral History of Adam Sandler, Pickup Basketball Legend – “Literally, it looked like he had them clothes since the 1990s, like literally the 1990s. “
  10. Wildfires prompt air quality alerts across the West – “If people have whole-home air-conditioning, installing high-efficiency filters and running the system can filter smoke that’s gotten inside.”

Note: This is based on when I read the article, not necessarily when it was first published.  Unfortunately, my backlog of things I would like to read always seems to dwarf the amount of time I can devote to reading.

Top clicks across the site:

  1. Financial Model vs. Operating Model
  2. EBITDA Is Not A Good Proxy For Cash Flow
  3. Family Mission: Solamere Loop Trail
  4. Excel Template: Football Field Chart
  5. Operating Model Tips

Updated stats through August:

ArticlesBooks
January654
February491
March643
April532
May970
June542
July1061
August1022
September
October
November
December
Total59015