The Digest #205

Books I read in Q2, Buffett's estate plan, The magic of compounding, How to read a book, Portfolio rebalancing, Ben Graham in 1955, Sam Walton, LBJ, Robert Moses, The origins of language, and more ...

I published three articles over the past week on my website, The Rational Walk:

• Warren Buffett’s Evolving Estate Plan, June 28, 2024. Warren Buffett has revised his will to leave nearly all of his wealth to a new charitable trust overseen by his children. For the past eighteen years, Mr. Buffett has made large gifts to the Gates Foundation in addition to four family foundations. While these annual pledges will be kept for the remainder of Mr. Buffett’s lifetime, the Gates Foundation will not receive any of Mr. Buffett’s remaining assets at the time of his death.

• The Magic of Compounding, June 30, 2024. The Social Security Administration sends out annual statements to all future beneficiaries. This statement includes lifetime earnings that have been subjected to payroll taxes. I compared my total lifetime wage income to my current net worth and was surprised by the result.

• What I’ve Been Reading, July 2, 2024. This is the twelfth installment of my popular series of mini-reviews of the books I’ve read during a quarter. This article covers the second quarter of 2024. During the quarter, I focused on Ancient Greece as well as early American history, along with one work of popular fiction.

As I mentioned several weeks ago, I no longer send out individual articles via email but I will mention all of my work in issues of The Digest. I also provide a RSS Feed and post links to all new articles on my X/Twitter feed. This approach keeps all readers informed of new articles while minimizing the number of emails in your inbox.

---

Quote of the Week

“I am apt to believe that it will be celebrated, by succeeding Generations, as the great anniversary Festival. It ought to be commemorated, as the Day of Deliverance by solemn Acts of Devotion to God Almighty. It ought to be solemnized with Pomp and Parade, with Shews, Games, Sports, Guns, Bells, Bonfires and Illuminations from one End of this Continent to the other from this Time forward forever more.”

— John Adams to Abigail Adams, July 3, 1776

---

Articles

Warren Buffett Gives Us a Preview of His Will by Karen Langley, June 28, 2024. The Wall Street Journal got an exclusive scoop on the details of Warren Buffett’s will. “The Gates Foundation has no money coming after my death,” Buffett said. (WSJ)

Halfway There by Jason Zweig, July 2, 2024. There have been many articles recently noting the large divergence between the performance of the S&P 500 and the average U.S. stock during the first half. Jason Zweig’s latest newsletter is the best summary of the situation that I have seen so far. (The Intelligent Investor)

• S&P 500 Equal Weight Index, February 6, 2024. Earlier this year, I wrote an article about the divergence in performance between the capitalization weighted S&P 500 and the equal weight S&P 500. The equal weight index has not been a great choice recently but it is far less exposed to the narrow set of high profile stocks in the midst of the artificial intelligence boom. (The Rational Walk)

Warren Buffett Q&A Transcript || Iconic Voices (2015) by

Kingswell

, June 24, 2024. “I just read and read and read. I probably read 5-6 hours a day. I don’t read as fast now as when I was younger, but I read five daily newspapers, I read a fair number of magazines, I read 10-Ks, I read annual reports — and I read a lot of other things, too. I’ve always enjoyed reading. I love reading biographies, for example.” (Kingswell)

LTL Logistics Industry Update by

Adam Mead

, May 29, 2024. “Overall there’s not much to get excited about in the LTL space right now. But it’s still good to keep tabs on the industry and to watch the watchlist so that one can be ready when Mr. Market throws a pitch right down the middle.” (Watchlist Investing)

The Best Summary of How to Read a Book by Mortimer Adler, June 2024. This is a very useful and concise summary of Mortimer Adler’s classic guide for reading. Most people read at an elementary level and miss a great deal as a result. (Farnam Street)

• How to Read a Book: The Classic Guide to Intelligent Reading, November 13, 2015. My article on Mortimer Adler’s book was written almost nine years ago. If I had not read Adler at that time, I doubt very much that I would have pursued reading as seriously as I have in recent years. (The Rational Walk)

How Do You Organize 3,000 Books? Touring My Personal Library by

Joel J Miller

, June 29, 2024. Much to my regret, I gave away most of my books several years ago as part of downsizing related to a move. I have been rebuilding my personal library ever since. I now have a set of built in shelves, but nothing as impressive as Joel Miller’s setup after his recent home renovation. Maybe someday! (Miller’s Book Review)

Balance Issues by Adam M. Grossman, June 30, 2024. This is a good article about how to rebalance a portfolio, especially after a major advance in stocks might have raised the risk profile of a portfolio. Retirees and others who rely on income from their portfolios need to pay particular attention to maintaining a balanced portfolio in order to avoid forced selling of stocks at a time of depressed prices. (Humble Dollar)

• The Role of TIPS in a Fixed Income Portfolio, April 19, 2023. My personal approach to drawdowns is to keep a minimum of five years of anticipated cash needs in treasury bills and short term treasury notes. I used to opt for five year TIPS to build a ladder, but I am increasingly skeptical that the official CPI-U index accurately reflects the cost of living. The question of the accuracy of the CPI index is a potential topic for a future article. (The Rational Walk)

Apple Watch Is Becoming Doctors’ Favorite Medical Device by Christopher Mims, June 29, 2024. Apple Watch has evolved into a powerful health tracking system. I’ve written about my experience with the Apple Watch Ultra 2 on a few occasions. My main concern, as an indirect shareholder of Apple, is the potential legal liability that exists. The risk of frivolous lawsuits is ever present in America. (WSJ)

---

Podcasts and Videos

Benjamin Graham - 1955 Masterclass on Value Investing, April 3, 2023. 15 minutes. This is a rare opportunity to see Benjamin Graham speak in public. It is remarkable how so many of his observations regarding the nature of security price movements and the concerns facing investors are timeless. (Graham Value)

Buffett’s Investment Evolution, June 20, 2024. 26 minutes. Lawrence Cunningham, the editor of The Essays of Warren Buffett: Lessons for Corporate America, knows Warren Buffett’s investment philosophy extremely well. (Consuelo Mack’s Wealth Track)

Sam Walton: The Inside Story of America’s Richest Man, June 29, 2024. 1 hour, 32 minutes. David Senra discusses a relatively obscure biography of Sam Walton. I enjoyed Walton’s autobiography and plan to read this book. (Founders Podcast)

LBJ vs. Robert Moses, September 24 2021. 49 minutes.

Erik Rostad

compares and contrasts Lyndon Johnson and Robert Moses based on biographies written by Robert Caro. I’ve read all of Caro’s books and I’m looking forward to his final installment of the LBJ series. This podcast might inspire you to read Caro’s books. (Books of Titans)

• The Power Broker: Robert Moses and the Fall of New York, June 12, 2020. My review of Robert Caro’s biography of Robert Moses. (The Rational Walk)

• The Sad Irons, September 12, 2023. Thoughts on the hard lives of the people of Texas Hill Country in the early twentieth century based on The Path to Power, the first book in Robert Caro’s biography of LBJ. (The Rational Walk)

Exercise for Aging People, June 24, 2024. 1 hour, 48 minutes. This is one of the best discussions about how older people should approach exercise, particularly those who have not exercised in a long time. Exercise is essential not merely for longevity but to be able to maintain independence well into old age. (The Peter Attia Drive)

How and Why Humans Started Speaking, June 27, 2024. 53 minutes. “Today’s guest is Steven Mithen, author of ‘The Language Puzzle’ He explores evidence from linguistics, psychology, neuroscience, anthropology, genetics, and archaeology to unearth new theories about the origins of language.” (History Unplugged)

---

Fourth of July Parade

Fourth of July Parade by Alfred Cornelius Howland, 1886

---

Copyright, Disclosures, and Privacy Information

Nothing in this article constitutes investment advice and all content is subject to the copyright and disclaimer policy of The Rational Walk LLC.  The Rational Walk is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.