Thursday, January 11, 2018

Links

"It seems [Fred] Wilson was correct that software alone is a commodity. In the language of legendary investor Warren Buffett, pure software companies don't have an effective "moat" to defend their business; it's easy for competitors to storm the barricades and overwhelm them. Since most software industries have relatively low barriers to entry—especially today, when startup costs are lower than ever—it's practically guaranteed that a competitor will come along and offer customers similar software that's either better or cheaper. That's where network effects come in.... Networks are much harder to duplicate than features are.... Successful platforms have strong moats in the form of their networks and operate at a scale that positions them to dominate their industries." (via Modern Monopolies: What It Takes to Dominate the 21st Century Economy)

Bruce Wayne vs. Leonardo da Vinci - by Christopher Pavese (LINK)
Related book: Leonardo da Vinci
The Most Powerful Research Tool is a Great Network - By Lewis Johnson (LINK)
Disruptive Regulations are coming: This Could Give Shipping Investors Multiple Ways to Win 
The two changes he noted are global environmental standards sponsored by the International Maritime Organization.  The first is the “Ballast Water Management Convention” that went into force late last year.  It requires that newly built ships have waste-water treatment equipment that purifies ballast water to certain minimum levels.  After September 2019, ships that were built before these standards came into force will need a costly upgrade to their equipment to meet this standard for the vessels to pass their periodic inspections.  
The second standard will be implemented in 2020.  I was amazed to learn that the world’s biggest 25 ships emit more sulfur than the entire world’s fleet of cars!  Accordingly, the regulation’s goal is to limit this pollution.  Ship-owners must achieve this goal and have several ways to do so, such as retooling to switch to a less polluting fuel like gas or methanol or by installing scrubbers to lower concentrations of pollutants.
Lessons from the 1980s for disruption. (LINK)

Hype Meets Reality as Electric Car Dreams Run Into Metal Crunch [H/T Matt] (LINK)

When Biology Becomes Engineering (video) (LINK)

Sebastian Junger: "Hell on Earth: The Fall of Syria and the Rise of ISIS" | Talks at Google (LINK)

On the doorstep of victory - By Bill Gates (LINK)
The world is closer than ever before to wiping out polio. 
Last year, the world saw the fewest number of polio cases—just 21, according to the latest figures. 
That’s incredible, especially when you consider that just 30 years ago, there were 350,000 cases of polio per year worldwide.

Wednesday, January 10, 2018

Links

"[The economics profession] has been confident in various formulas, but economics is not physics. The same formula that works in one decade doesn't work in the next. Economics is a difficult subject, and a lot of overconfidence has been removed from the economics profession over the last 20 years. They've been really surprised." - Charlie Munger (on CNBC this morning)

Warren Buffett on CNBC (FULL VIDEO, TRANSCRIPT)

Berkshire Hathaway Boosts Its Board Size (LINK)
Warren Buffett has elevated two longtime Berkshire Hathaway Inc. executives to vice chairman roles at the company, all but confirming years of speculation that one of them is in line to replace him. 
Berkshire said Wednesday that it is expanding its 12-member board of directors by two and naming Gregory Abel and Ajit Jain to fill the spots.
Eddie Lampert: Enhancing Our Liquidity and Accelerating Our Return to Profitability (LINK)

Good Luck Spending Your KodakCoins (LINK)

I Made My Shed the Top Rated Restaurant On TripAdvisor - by Oobah Butler [H/T Santangel's Review] (LINK)

Panel remarks by Claudio Borio: A blind spot in today's macroeconomics? (LINK)
A standard presumption in today's macroeconomics is that when making sense of first-order macroeconomic outcomes we can treat the economy as if its output were a single good produced by a single firm. This means that issues of resource misallocation can be safely ignored. But the link between resource misallocations and macroeconomic outcomes may well be tighter than we think. This speech illustrates the point with reference to two examples that highlight the link between finance and macroeconomics: the impact of resource misallocations induced by financial booms and busts on productivity growth, and an intriguingly close relationship between the growing incidence of "zombie" firms and declining interest rates since the 1980s.
When Humans War, Animals Die - by Ed Yong (LINK)

Why dolphins are deep thinkers (from 2003) [H/T @juliagalef] (LINK)
At the Institute for Marine Mammal Studies in Mississippi, Kelly the dolphin has built up quite a reputation. All the dolphins at the institute are trained to hold onto any litter that falls into their pools until they see a trainer, when they can trade the litter for fish. In this way, the dolphins help to keep their pools clean. 
Kelly has taken this task one step further. When people drop paper into the water she hides it under a rock at the bottom of the pool. The next time a trainer passes, she goes down to the rock and tears off a piece of paper to give to the trainer. After a fish reward, she goes back down, tears off another piece of paper, gets another fish, and so on. This behaviour is interesting because it shows that Kelly has a sense of the future and delays gratification. She has realised that a big piece of paper gets the same reward as a small piece and so delivers only small pieces to keep the extra food coming. She has, in effect, trained the humans.

"Accounting is but an aid to business thinking, not a substitute for it." - Warren Buffett [H/T CIO]

Tuesday, January 9, 2018

Links

'Moneyball' Author Michael Lewis: How I Knew When to Quit a Fancy Wall Street Job to Follow My Dream [H/T Linc] (LINK)
Related book: When to Jump: If the Job You Have Isn't the Life You Want (the audiobook looks like it is read by those who contributed stories to the book)
Ray Dalio’s Secret Sauce – The Truth Machine and The Good Life (LINK)
Related book: Principles
Invest Like the Best Podcast: Creative Investing, with CoVenture’s Ali Hamed (LINK)

Capital Allocators Podcast: Michael Mauboussin – Active Challenges, Rational Decisions and Team Dynamics (LINK)

How do alligators survive the winter weather in a frozen pond? (LINK)

Great Barrier Reef: rising temperatures turning green sea turtles female [H/T Linc] (LINK)

Super-Black Is the New Black - by Ed Yong (LINK)
Feathers on birds of paradise contain light-trapping nanotechnology that makes some of the deepest blacks in the world.

Monday, January 8, 2018

Links

Complexity Bias: Why We Prefer Complicated to Simple (LINK)

Latticework of Mental Models: Impact Bias (LINK)

2017 Capital Link Invest in Greece Forum - Global Investor Panel (video featuring Kyle Bass, and others) [H/T ValueWalk] (LINK)

Meltdown, Spectre, and the State of Technology - by Ben Thompson (LINK)

Sammy Hagar: Content Marketing/Bundling/Brands/Pricing Power - by Tren Griffin (LINK)

Inside the Amish town that builds U2, Lady Gaga, and Taylor Swift's live shows [H/T @benthompson] (LINK)

Biology, the New (Old) Technical Debt… and What That Means for Healthcare Innovation - by Vijay Pande (LINK)

Artificial intelligence will be a symbiosis, not a replacement - by Matt Ridley (LINK)

The Real (and Imaginary) Benefits of Multitasking [H/T @AdamMGrant] (LINK)
Related previous post: Jeff Bezos on multi-tasking

Sunday, January 7, 2018

Take a simple idea and take it seriously...

From the beginning of Mohnish Pabrai's Lecture at Boston College a few weeks ago (and slightly edited for clarity):
There's a saying...'Take a simple idea and take it seriously.' And I think that's a really important thing to keep in mind. And I think when you look at lots and lots of extremely successful people right at the pinnacle of their careers, when you break it down, that quote is at the epicenter of how they got there. Usually it's not something earth-shattering. Usually it's something very simple, but they were intense about it, and they were just fanatical about it. And that's usually the fanaticism and intensity around a simple idea that gets you to the promised land.
....................

Related previous posts:

The world's best companies are built by fanatics...

Charlie Munger on high quality businesses and management

Finding an edge, and the intelligent fanatic that was Sam Walton

Friday, January 5, 2018

Links

“When any person offers you a chance to earn lots of money without risk, don’t listen to the rest of their sentence. Follow this and you’ll save yourself a lot of misery.” - Charlie Munger

Best value investing resources for 2018 (LINK)

The Fallacy of Instant Success - by Ian Cassel (LINK)

Making History By Doing Nothing - by Morgan Housel (LINK)

When Things Don’t Make Any Sense - by Ben Carlson (LINK)

Brent Beshore talks with Aaron Watson (2-part podcast) [H/T Abnormal Returns] (LINK)

Treating Disease by Nudging the Microbes Inside Us - by Ed Yong (LINK)

Mammoths resurrected, geoengineering and other thoughts from a futurist | Stewart Brand and Chris Anderson (video) (LINK)

Thursday, January 4, 2018

Links

Warren Buffett Shares the Secrets to Wealth in America [H/T Matt] (LINK)

Bracing Yourself for a Possible Near-Term Melt-Up (A Very Personal View) - by Jeremy Grantham (LINK)

December 2017 Issue of Value Investor Insight (LINK)

The Cashless Society Has Arrived—Only It’s in China [H/T Matt] (LINK)

The Knowledge Project Podcast -- The Art of Letting Other People Have Your Way: Negotiating Secrets from Chris Voss (LINK)
Related book: Never Split the Difference
Aubrey de Grey, PhD: "The Science of Curing Aging" | Talks at Google (LINK)

What’s the difference between stoicism and Stoicism? (LINK)

Book of the day (released this week): The Elephant in the Brain: Hidden Motives in Everyday Life

Wednesday, January 3, 2018

Links

"History does not repeat itself in the same way each time, but certain trends and consequences are constants. If you do not know history, you think short term. If you know history, you think medium and long term." - Lee Kuan Yew (via Lee Kuan Yew: The Grand Master's Insights on China, the United States, and the World)

Mohnish Pabrai On The Irrelevance Of Buying Stock Outside Circle Of Competence And Realty Stocks (video) [H/T @VJ_Rabindranath] (LINK)

Outfoxed by Small-Batch Upstarts, Unilever Decides to Imitate Them (LINK)

In Israel, Teva has become more than just a drug company. But its future is now in question [H/T @CGrantWSJ] (LINK)

Pharma, under attack for drug prices, started an industry war (LINK)

My Father's Body, at Rest and in Motion - by Siddhartha Mukherjee (LINK)

ABC News’ Dan Harris on Ambition, Mindfulness and Reaching Peace of Mind (LINK)
Related book: Meditation for Fidgety Skeptics
Ancient Infant's DNA Reveals New Clues to How the Americas Were Peopled - by Ed Yong (LINK)

Tuesday, January 2, 2018

Links

“The best way out is always through.” - Robert Frost

Looking For New Year Inspiration? Meet Chuck Feeney--The James Bond Of Philanthropy [H/T Linc] (LINK)

Making China Great Again - by Evan Osnos (LINK)

Eurasia Group's Report on the Top Political Risks for 2018 (LINK)

Google X and the Science of Radical Creativity (from November) [H/T @Atul_Gawande] (LINK)

How Do Animals See the World? - by Ed Yong (video) (LINK)

1967 Interview with Lee Kuan Yew (Video, Transcript)

Monday, January 1, 2018

Links

Christopher Pavese summarizes Man’s Search for Meaning by Viktor Frankl (LINK)

Ray Dalio Suggests You Think About What Journey You're On (LINK)
Related books: 1) The Hero with a Thousand Faces; 2) Principles
MoviePass. Premature Scaling? - by Tren Griffin (LINK)

Less Phone, More Nature: 34 Resolutions For a Better 2018 - by Jason Zweig (LINK)

Grant's Podcast: Periodical table (LINK)

Why American doctors keep doing expensive procedures that don’t work [H/T Chris] (LINK)
Related book: Unhealthy Politics: The Battle over Evidence-Based Medicine
The immensity of the Universe, and our place in it (LINK)