The post discusses the concept of 'thesis drift' in investing, where investors create new justifications for holding onto losing stocks instead of admitting their original thesis was wrong. It highlights the psychological aspects ...
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The post examines the paradox of housing prices, arguing that higher prices can be beneficial if linked to rising incomes, while supply restrictions can harm future housing consumers.
The text discusses the book 'The Man Who Broke Capitalism' by David Gelles, which argues that the decline of the American economy can be traced back to Jack Welch's tenure as CEO of General Electric. The author refutes the claims ...
0One Funeral at a Time
2024-12-31 •
The text discusses the success of Sam Zell, a real estate investor, and his analytical approach to investing. Zell's approach was based on understanding basic supply and demand, and he was able to make a fortune by acquiring distr...
0Stock Buybacks, Demystified
2024-04-21 •
The New York Times Guild expressed frustration over stagnant wages and shrinking pension benefits at The Gray Lady. They criticized the NYT's stock buyback program, but the company had hardly bought back any of its own stock. Crit...
0Intellectual Laziness
2023-07-04 •
The text discusses the rise and fall of General Electric, focusing on the leadership of Jack Welch and Jeff Immelt. It explores the reasons behind GE's collapse, including poor operating discipline, GE Capital, and poor capital al...
0The Great Depositor Bailout
2023-03-14 •
The U.S. government announced a plan to shut down two troubled banks, Silicon Valley Bank and Signature Bank, and guarantee all of their uninsured deposits, recently totaling $220 billion. The announcement set off a debate over wh...
0Unconventional Strategies
2023-01-04 •
Southwest Airlines is known for its unconventional strategies, which have made it the most successful airline in the country. The post discusses the downfall of another unconventional company, General Electric, and compares it to ...
0Deregulation and Airfares
2022-12-30 •
The text discusses the history of airfares and the impact of deregulation on air travel. It compares the regulated and deregulated airfares, and the predictions made about deregulation. The author also talks about the impact of de...
0Ride-Hailing, Revisited
2022-12-24 •
The text discusses the business model of ride-hailing companies like Lyft and Uber, focusing on the take rate of these companies from drivers' earnings. The author compares the take rate reported by drivers with comprehensive data...
0Classic Longreads: Oil and Airlines
2022-12-06 •
The text is a review of two classic essays and articles, with additional commentary to put them into context. The first essay is about T. Boone Pickens' early effort to drill for oil on the floor of the New York Stock Exchange, an...
0What's Wrong with California?
2022-11-12 •
Californians are dissatisfied with their state and local governments due to high taxes and inadequate services. The state has high tax rates, particularly in sales and income tax, but this does not translate into better funded pub...
0It's Never the Subsidies
2022-10-22 •
The text discusses the fallacy of assuming that popular things are only popular because of subsidies. It uses the example of ride-hailing and high-speed rail to illustrate that the popularity of these services is not solely due to...
0Solving Scurvy
2022-09-24 •
The text discusses the history of scurvy, its impact on sailors, and the efforts to prevent and treat it. It highlights the knowledge of how to prevent and treat scurvy was found and lost throughout the centuries. The text also di...
0Perspective
2022-08-15 •
The text discusses the struggles of Whole Foods and its co-founder and CEO, John Mackey. It highlights the company's decline in the face of growing competition, and Mackey's controversial comments about the younger generation's wo...
0The Midwit Trap
2022-08-13 •
The text discusses the 'Midwit Meme' which refers to the tendency of people of average intelligence to come up with complicated solutions to problems that have simple solutions. The author argues that in finance and economics, com...
0Lemons
2022-05-15 •
The text discusses the economic model of asymmetric information and how it applies to employer-employee relationships. It explains why badmouthing a former boss in a job interview is not advisable and how it reflects poorly on the...
0Scarcity Truthers
2022-03-12 •
The text discusses the scarcity of essential goods such as healthcare, housing, and college admissions. It argues that the scarcity of these goods is artificial and that it is harmful to society. The text also discusses the impact...
0The Great American Coin Shortage
2021-12-19 •
The text discusses the ongoing coin shortage in the US, which has been attributed to the disruption of coin circulation due to COVID-19. It explores the reasons behind the shortage, including the hoarding of coins by businesses an...
0Ride-Hailing: Is It Sustainable?
2021-11-28 •
The article discusses the sustainability of ride-hailing services, focusing on Uber. It presents the argument that Uber is unprofitable and inefficient, and that it would only make money if it bought its way to an unregulated mono...
0Blame the Investors?
2021-10-31 •
The text discusses the alleged obsession of modern finance with return on equity (ROE) and its impact on supply chain bottlenecks. It presents contrasting views on the issue and explores the role of investors and managers in shapi...
0Cartels
2021-10-17 •
The text discusses the concept of cartels and monopoly profits. It explains how businesses seek monopoly profits and the legal and ethical implications of achieving them. It also explores the impact of cartels on various industrie...
0Where Are All The .400 Investors?
2021-09-12 •
The text discusses the lack of successful investors like Warren Buffett and the mystery behind it. It compares Buffett's success to that of tech company founders and hedge fund managers. It then delves into the case study of Shelb...