The Digest #201
The Digest #201
Daily Journal, The Oresteia, Elon's compensation, TSMC, Banks in disguise, Reading about stupidity, Zweig on Ben Graham's continued relevance, 3G Capital, Morgan Housel, Christopher Tsai, and more ...
The sluggard says, “There is a lion in the road! There is a lion in the streets!” As a door turns on its hinges, so does a sluggard on his bed. The sluggard buries his hand in the dish; it wears him out to bring it back to his mouth. The sluggard is wiser in his own eyes than seven men who can answer discreetly.
The Rational Walk
Daily Journal: The Canary in the Coal Mine?, May 25, 2024. Daily Journal and Berkshire Hathaway have very little in common other than decades of Charlie Munger's involvement and influence. Recent developments at Daily Journal raise concerns about the durability of its unique culture. (The Rational Walk)
The Oresteia, May 29, 2024. The Oresteia is a trilogy produced by Aeschylus in 458 BC. Rising from a cycle of savagery, mankind finds its way toward due process and justice. This article presents my thoughts after several readings. (The Rational Walk)
Events
Tribute to the Life and Career of Charlie Munger, June 4, 2024. This event will be held at Fordham University in New York City next week and features Lawrence Cunningham, Donald Graham, Ron Olson, and Tom Gayner. The in-person event is free but registration is required. (Museum of American Finance)
Articles
The Dark Stain on Tesla's Directors by
, May 28, 2024. My view has been that Elon Musk’s compensation package is a matter between him and Tesla shareholders. I don’t like it when courts intervene in such matters. However, this article raises serious concerns and is worth reading. (Lawrence’s Substack)The Fight Over Elon Musk’s $56 Billion Pay Package, May 27, 2024. 50 minutes. Listening to this interview of Lawrence Fossi, who has posted as “Montana Skeptic” on X/Twitter, is what led me to his Substack. (Hidden Forces)
TSMC: The Most Mission-Critical Company on Earth by Abdullah Al Rezwan, May 24, 2024. This is an introduction to a deep dive report on Taiwan Semiconductor. I am not a paid subscriber but found the free introduction very valuable. The economy and technology companies such as Apple are very exposed to the disruptions that would certainly occur in the event of a Chinese invasion of Taiwan. (MBI Deep Dives)
, May 24, 2024. Companies that are able to obtain use of customer funds at no cost, such as Starbucks with its gift card program, have the potential to reap major rewards from interest-free use of money as well as “breakage” — the fact that some customer funds will never be used. (Net Interest)House passes bill barring Federal Reserve from issuing digital dollar by Julia Shapero, May 23, 2024. Although this legislation has no immediate effect since the Fed has yet to announce plans for a Central Bank Digital Currency (CBDC), keeping the public focused on the perils of such a system is worthwhile. (The Hill)
, May 22, 2024. “The single best thing you can learn in college is stupidity. Currently it’s just an (extremely popular) extracurricular. But they really should turn it into a major—Stupidity Studies. The fastest way to get smart is to avoid the pitfalls of the stupid. But you need to learn them first.” (The Honest Broker)Teach Your Children to Love America by Peggy Noonan, May 23, 2024. It is not “indoctrination” to teach civics in school and promote a positive view of our country. No society will long survive if it teaches children that their country is fatally flawed and inherently unjust. The toxic comments section of the article, where only WSJ subscribers can post, proves the author’s point about divisions facing America. (WSJ)
Podcasts and Videos
Jason Zweig’s Keynote Address, May 21, 2024. This keynote was delivered on April 10 at Ben Graham Centre for Value Investing's 2024 Value Investing Conference. The subject was Benjamin Graham’s relevance seventy-five years after he published The Intelligent Investor. A new edition of the book, with updated commentary on each chapter written by Jason Zweig, will be released this fall. (YouTube)
Real Success w/Christopher Tsai, May 26, 2024. 2 hours, 26 minutes. William Green is a great interviewer with a talent for drawing out personal details from his guests. I found Christopher Tsai’s background fascinating, particularly the discussion about his complex relationship with his famous father, Gerald Tsai. However, I did not find Christopher’s bullish thesis on Tesla compelling. (Richer, Wiser, Happier)
Classic Deal — Burger King by 3G Capital, May 6, 2024. 1 hour, 13 minutes. “Over the last fourteen years, or the length of a typical private equity fund, 3G turned a $1 billion investment into $28 billion in value. The annual dividends from the investment accruing to 3G today are around 70% of its invested capital. The deal is one of the highest earning buyouts ever.” (Capital Allocators)
Morgan Housel: Get Rich, Stay Rich, May 28, 2024. 1 hour, 39 minutes. Video. “Not having FOMO [fear of missing out] is the single most important financial skill. I think it is so important that you cannot imagine accumulating significant wealth over your lifetime if you are susceptible to FOMO.” (The Knowledge Project w/Shane Parrish)
Addicted to Distraction | Ted Gioia, May 29, 2024. 1 hour, 55 minutes. Video. “Ted gives a masterclass on the state of our culture at large. What’s up with our obsession with minimalism? Why do we value speed over beauty? Do we even realize that we’re distracting ourselves into oblivion? And, of course, what does this mean for us as writers?” (How I Write)
The Acropolis at Athens
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