Monday, June 23, 2014

High Yield Reads - 6/23/14

Summary of recents posts and pieces of interest, sometimes enduring, to investors:

  • Millenial Invest - The Power of Share Repurchases. Scores a lot of points in favor of buybacks, at the same time, its a lot to ask a CEO to be 1) excellent at running their business AND 2) know how/when to invest wisely and objectively. Most cannot do #1 and only a handful can do #2. If John Malone is your CEO then I love buybacks, for everyone else there's dividends
  • Basehit Investor on Thinking Differently with Mohnish Pabrai - offers two rules - 
    • Don’t try to beat the market (go for absolute returns as opposed to focusing on what the indices are doing)
    • Don’t buy any stock unless you feel it has the potential to be worth 2-3x in 2-3 years
  • Todd Wenning - A fine line between patience and laziness - related to the above point, I think its pretty hard for non-pros to hit Pabrai's targets, ok it was easy in 2008-10, but hard most of the time. For non-pros I think laziness could be a virtue, because you may not have that much of the most precious resource - time - when you need it. But Todd's guidance is helpful as ever to clarify what your goals are.
  • I was saddened to see Medtronic moving to Ireland. This is an iconic Minnesots company. The company started in a garage in 1949 and invented the pacemaker among many other innovations.  If the US cannot see fit to find a way that these companies can stay and thrive, what is point of technological leadership? Technology is like riding a bear, you have to grab and hold on. You do not get it as a right to lead tomorrow just because you lead today. You have to fight every day to maintain your technology leadership. You cannot stand idly by and let innovators leave. As the WSJ editorial asked - what kind of country does this to itself?

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