Archives of “January 5, 2019” day

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What’s Warren Buffett Buying Now?

  
Analysis, Education, US Market
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warrenbuffet-buyingDon’t miss to read……..

As shares of Berhshire Hathaway Inc. (NYSE: BRK.A, BRK.B) plunged over the past year, it became fashionable to ask whether or not Warren Buffett had lost his touch.

(See: ETF Guide: Down $16 Billion – Has Warren Buffett Lost His Touch?; MSN Money: The problem with Warren Buffett; Forbes: Has Buffett Lost His Touch; Reuters: Is Warren Buffett losing his touch?)

In June, financial advisor and CNBC contributor Dennis Gartman even called Buffett “an idiot.”

But now that Berkshire has rallied more than 35% from its March lows, the only idiots to be found are those that ever doubted the world’s second-richest man’s business savvy. Indeed, many of the moves Buffett made during last year’s market melee are paying off in a big way. (more…)

A Visual Timeline Of The Endless Greek Crisis Through The Economist's Covers

  
Analysis, Education
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It all started in April 30, 2010, days ahead of the first Greek bailout , when the Economist shocked the world with its first Greece-themed cover, the infamous Heart of Eurodarknessreprise, “Acropolis Now.”

Ever since then it has been a veritable cornucopia of content for the Economist’s cover designer. As the London-based publication itself says, “for a relatively small country it is a rare distinction (or misfortune) to make the cover of The Economist. Greece, however, has managed the feat no less than seven times over the past five years. It first made the grade in May 2010 as its sovereign-debt crisis spiralled out of control. Frequent trips back to the brink of disaster have been responsible for repeat cover performances, as has the occasional bail-out or election”

Here is a quick stroll through memory lane of how the Greek fiasco unwound over the past 5 years, as summarized by cover art:

June 25, 2011:

  (more…)

The Difference Between a Speculator and a Gambler

  
  Education
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“gamblers are willing losers who occasionally win”

That is, gamblers risk their capital on propositions where the odds are either:

– unknown to them
– cannot be known

– which actual experience has shown to have negative expectation
– or which they know with mathematical precision to be negative

They are rewarded for doing so on a random schedule and a random reward size, which is a pattern of stimulus-response which behavioral scientists have established as one which induces the subject to engage in the behavior the longest without a reward, and creates superstitious as well as compulsive behavior patterns. Because they have traded reason for emotion, they tend not to follow reasonable and disciplined approach to sizing their bets, and often over bet, leading to ruin. (more…)

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