The Digest #220
The Digest #220
The Intelligent Investor, Antitrust and Big Tech, Berkshire Hathaway's Moat, Nuclear War Risks, The Invisible Man, AIG's Rise & Fall, Housing Prices, Barbary Wars, Speeches of Pericles, and more ...
Quote of the Week
“Those who know how close the connection is between the state of mind of a man - his courage and hope, or lack of them - and the state of immunity of his body will understand that the sudden loss of hope and courage can have a deadly effect.”
— Viktor Frankl, Man’s Search for Meaning
The Intelligent Investor
I knew virtually nothing useful about investing in the fall of 1995 when I first read The Intelligent Investor, Benjamin Graham’s classic book which was first published in 1949. Although the version I read had been updated in 1973, it was showing its age. But I still found the contents revolutionary compared to what I had been taught in college.
I read The Intelligent Investor soon after finishing Roger Lowenstein’s biography of Warren Buffett. There is no way to calculate the value of reading these books nearly thirty years ago, but I know that my net worth today would be a small fraction of what it is had I not been exposed to Graham and Buffett in my early twenties. Without this wisdom, I would have surely lost a great deal of money in the dot com bubble.
Benjamin Graham is often criticized for being rigid and dogmatic, but this is a lazy and extremely unfair caricature. What Graham tried very hard to do was provide individual investors with practical guidance that they could actually use. This was based on an underlying investment philosophy that was timeless, but the specifics were never written in stone. It is absurd to think that Graham, if still alive today, would advocate rigidly following formulas that he last revised over fifty years ago.
In 2003, a new version of The Intelligent Investor was published with extensive commentary written by Jason Zweig. I read that version and have given away several copies over the years. Benjamin Graham’s words were not altered, but much additional useful content was added to make it more relevant to modern readers.
When I read about the 75th anniversary edition of the book, I assumed that Jason Zweig had made updates to his 2003 version. I did not realize that his commentary had been re-written from scratch, which he revealed in a recent podcast interview (included in this week’s podcast listing below). It’s very impressive for an author to completely set aside so much earlier work to start a new version from a blank sheet of paper, so I ordered the new edition and look forward to reading it.
Articles
The Intelligent Investor at 75 by
, October 22, 2024. “By my count, there are over 200 pages of new commentaries by Zweig — making this new edition an appealing two-for-one proposition. Graham’s untouched classic and nearly a full book’s worth of writing by Zweig. It creates an interesting juxtaposition between new and old, giving readers a whole new perspective on Graham’s message.” (Kingswell)Breaking up Big Tech: Cui Bono? by
, October 18, 2024. This is a great historical account of antitrust policy in the United States and its application (or misapplication) to tech companies in the 21st century. (Musings on Markets)Berkshire Hathaway: Moat Rating Lowered to Narrow by Greggory Warren, October 21, 2024. While I agree with the author regarding trouble at large subsidiaries such as BNSF, BHE, and GEICO, I expect that Greg Abel has been working overtime to bring about the kind of margin improvements he delivered in the Manufacturing, Service, and Retailing group in recent years. This could represent a partial offset to limited reinvestment opportunities due to Berkshire’s large capital base. (Morningstar)
Death Benefits by Jonathan Clements, October 19, 2024. It takes a great deal of financial expertise to settle on an optimal strategy for claiming social security benefits, and the situation is even more complex for spousal benefits. (Humble Dollar)
Nuclear-War Risks Rise Again, Stoked by Global Conflicts by Laurence Norman, October 16, 2024. It is good to see mainstream media articles covering the most important existential threat to the continued existence of humanity on earth. (WSJ)
, October 15, 2024. When should society adopt the precautionary principle and when should we be more willing to “roll the dice” when it comes to new technologies? There are some gray areas here and the answer is not always obvious, as this article discusses in more detail. (Future Blind)What ‘The Invisible Man’ Made Visible to Me by
, October 19, 2024. If you could become invisible, the possibilities for mischief would be endless. However, there would also be serious downsides. This is a review of one of my favorite books which raises important philosophical and ethical questions. (Miller’s Book Review)Exercise and Depression by Peter Attia, October 19, 2024. Exercise is often thought to be very positive for better mental health, but can exercise do a better job of dealing with depression and anxiety than pharmaceuticals? As attractive as the idea might be, a recent study that made headlines falls short when it comes to proving causality. I like Peter Attia’s series on evaluating medical studies because he calls out flawed studies even in cases where he might personally like the conclusion. (Peter Attia MD)
Podcasts
Jason Zweig Interviews. The following podcasts feature Jason Zweig discussing the 75th anniversary edition of The Intelligent Investor which was released today:
The Intelligent Investor w/Jason Zweig, October 20, 2024. 1 hour 53 minutes. “William Green chats with Jason Zweig about his updated and revised edition of Benjamin Graham’s The Intelligent Investor, which Warren Buffett describes as ‘by far the best book on investing ever written.’” (Richer, Wiser, Happier)
Jason Zweig talks about his life, career, and books, October 19, 2024. 58 minutes. “Jason became a columnist for The Wall Street Journal in 2008, and before that, he was a senior writer for Money magazine and a columnist for Time magazine … From 1987 to 1995, Jason was the mutual funds editor at Forbes.” (Bogleheads on Investing)
AIG: Rise, Fall, and Rebirth, October 16, 2024. 52 minutes. “AIG's story is one of a remarkable turnaround, a tale of a global insurance giant emerging from near collapse during the great financial crisis. Over nearly two decades, AIG has transformed itself into a more focused and efficient property and casualty insurer.” (Business Breakdowns)
John Collison, October 18, 2024. 51 minutes. “Matt and Katie talk with their first guest, John Collison about the financial services business, why payments are hard, what's good about crypto, why IPOs don't matter and how to fly planes.” (Money Stuff: The Podcast)
Why Housing is Artificially Expensive and What Can Be Done About It, October 21, 2024. 1 hour, 6 minutes. “Housing is artificially expensive. Bryan Caplan of George Mason University and the author of Build, Baby, Build talks with Russ Roberts about the causes behind high housing prices and what can be done to bring prices down.” (Econ Talk)
Key Battles of the Barbary Wars, October 17, 2024. 31 minutes. “The Barbary Wars were a series of conflicts between the United States and the Barbary States of North Africa from 1801 to 1815, fought over the piracy and tribute demands imposed on American ships. These wars marked the U.S. Navy's first significant overseas military engagements and helped establish American maritime power. We also see the birth of the U.S. Marines and how they literally fought on the shore of Tripoli.” (History Unplugged)
The Speeches of Pericles, October 18, 2024. 31 minutes. “In Book 2 of The Peloponnesian War by Thucydides, the Athenian general Pericles gives two extraordinary speeches. One is a eulogy and the other a response to an angry and devastated populace in the midst of war and pestilence.” (
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