The Digest #218
Books I read during Q3, Hurricane insurance claims, Berkshire's troubled railroad, Nike's troubles, Doing what you love, Human aging, Ray Ozzie on intelligent machines, Aesop's Fables, and more ...
Worldly Wisdom
Every time I read the Book of Proverbs, I am struck by the worldly wisdom it contains. The primary audience of the book appears to be young men getting started in life, but anyone can benefit from common sense advice. Of course, this is a religious text, but most proverbs ring true regardless of religious beliefs, such as these related to wealth:
“One pretends to be rich, yet has nothing;
another pretends to be poor, yet has great wealth.”
“Wealth gained hastily will dwindle;
but whoever gathers little by little will increase it.”
“In toil there is profit,
but mere talk tends only to poverty.”
Articles
What I’ve Been Reading, October 5, 2024. A series of brief reviews about the books I read over the past three months. Books include Persian Fire by Tom Holland, The History of the Peloponnesian War by Thucydides, Hillbilly Elegy by J.D. Vance, A Soldier of the Great War by Mark Helprin, A Death in Cornwall by Daniel Silva, The Plays of Sophocles, and the ESV Study Bible (Genesis to Psalms). (The Rational Walk)
Thoughts on Israel’s 9/11, October 12, 2023. A year ago, Hamas terrorists steeped in violent Islamic extremism murdered over 1,200 people and took at least 240 hostages, many of whom remain in captivity today. I wrote this article shortly after the terrorist attack. My only regret is that it was not even more strongly worded given the rise in antisemitism that took place in America in the following months. (The Rational Walk)
Homeowners Hit by Hurricane Helene Are In for an Insurance Claim Shock by Jean Eaglesham, October 5, 2024. Alternate Link. The inland devastation from this hurricane has been shocking. As a longtime owner of insurance company shares, I cringe when I read about policyholders being surprised about coverage. This should never happen. Insurance companies have a responsibility to be exceptionally clear when writing policies. There should never be any surprises after a disaster hits. (WSJ)
Can a ‘Precision Scheduling’ Expert Fix Berkshire Hathaway’s Railroad? by Esther Fung, October 4, 2024. Alternate Link. BNSF has underperformed its peers for far too long. Warren Buffett takes a long term perspective, but his patience is not without limit, as we could see in his 2023 shareholder letter and comments at the annual meeting. Steps are now being taken to improve BNSF’s performance. (WSJ)
Burlington Northern Santa Fe — 2023 Results, March 9, 2024. In addition to examining 2023 results in detail, this article summarizes the performance problems at BNSF compared to other Class 1 railroads. (The Rational Walk)
Railroader: The Unfiltered Genius of Hunter Harrison, September 20, 2022. A review of the biography of Hunter Harrison, the man who developed many of the principles of “precision scheduled railroading.” (The Rational Walk)
Borsheims CEO on Working With Warren Buffett by Ella Hopkins, October 1, 2024. “He visits the store several times a year and usually tells me ahead of time, but not always. Once, I was helping a customer pick out some jewelry, and he walked into the store and started asking questions about inventory. I had to ask the customer to excuse me. She had no idea Warren Buffett was standing next to her.” (Entrepreneur Magazine)
, October 6, 2024. “The acquisition was part of Buffett’s strategic shift away from the faltering textile business that Berkshire was initially known for. It was evident that textiles was no longer a viable business. Buffett continued to allocate capital away from the division and into sectors with better long-term prospects, like financial services and insurance, which were cash-generating and had predictable earnings. Moreover, Buffett appears to have targeted businesses with float, as National Indemnity and Illinois National Bank were flush with cash.” (Becoming Berkshire)Just do it! Brand Name Lessons from Nike's Troubles by
, October 1, 2024. This is a great article about brand value in general with a focus on Nike’s brand, its current troubles, and its valuation. (Musings on Markets)When To Do What You Love by Paul Graham, September 2024. “There's some debate about whether it's a good idea to ‘follow your passion.’ In fact the question is impossible to answer with a simple yes or no. Sometimes you should and sometimes you shouldn't, but the border between should and shouldn't is very complicated.” (PaulGraham.com)
Finding Your Life’s Work, November 14, 2023. (The Rational Walk)
How I Learned To Stop Worrying & Love Market Fluctuations by
, October 1, 2024. This is my favorite Charlie Munger quote! “I try never to go too long without quoting Charlie Munger, so here’s one of my favorites: ‘If you’re not willing to react with equanimity to a market price decline of 50% two or three times a century, you’re not fit to be a common shareholder and you deserve the mediocre result you’re going to get.’” (Kingswell)Consuming the News, a.k.a. Guzzling the Limbic Cocktail by
, October 2, 2024. I’ve followed almost exactly the same path over the past decade, and I’m far better off as a result: “About a decade ago I decided to opt out of about 80–90 percent of the news coverage I had previously consumed. I remain largely disconnected. I pay attention to the weather, such as the disastrous Hurricane Helene, and a handful of pet issues. But for my own sanity I intentionally ignore most everything else.” (Miller’s Book Review)Gell-Mann Amnesia, November 11, 2022. Never assume that the mainstream media is an authoritative source of accurate information. Even when the media had far more integrity, this was a bad assumption to make. (The Rational Walk)
Writing Examples. David Perell, who I often link to in this newsletter, has launched a website with examples of how successful authors have applied the art of writing to their specific purposes. In addition to articles, there are videos explaining these techniques. Anyone who writes regularly will profit from this material.
Do humans age in distinct rapid bursts instead of gradually over time? by Peter Attia, October 5, 2024. A recent study concluded that aging is nonlinear and sharp spurts occur around age 44 and age 60. However, the study has some limitations that cast doubt on the precision of these breakpoints for any specific individual. FWIW, I did not notice a major change in my mid-forties (sample size of one). (Peter Attia MD)
Podcasts
Ray Ozzie — The Future of Intelligent Machines, October 1, 2024. 1 hour, 33 minutes. “Ray is perhaps best known as the creator of Lotus Notes, a collaboration tool that revolutionized business communication in the 1990s. He later succeeded Bill Gates as Chief Software Architect at Microsoft, where he played a key part in the development of Azure, Microsoft's cloud computing platform.” (Invest Like the Best)
Phil Ordway Returns to Discuss the Equity Market Environment and Outlook, October 2, 2024. 1 hour. I found the discussion regarding artificial intelligence particularly interesting, especially the possibility that AI could disrupt companies in the software industry. With software company valuations typically leaving little room for disappointment, it seems like the prospect of this type of AI disruption has not been discounted in market prices. (This Week in Intelligent Investing)
Compounding Beyond Wealth, October 6, 2024. 1 hour, 18 minutes. “Kyle Grieve chats with co-host Clay Finck about Clay’s favorite book, The Joys of Compounding. They discuss how compounding can affect people's lives inside and outside of investing, simple thinking tools to make better decisions, why humility is such an important trait all good investors possess, how to think about value and quality traps, why you should emphasize compounding in your relationships with others and your health…” (We Study Billionaires)
The Joys of Compounding, June 1, 2020. My review of Gautam Baid’s book which I enjoyed reading a few years ago and highly recommend. (The Rational Walk)
Aesop’s Fables, October 3, 2024. 33 minutes. “Written by a non-Greek slave (who may not have existed but was reported to be very ugly), Aesop was an outsider who knew how to skewer Greek society and identify many of the contradictions of antiquity. HIs tales offer us a world fundamentally simpler to ours—one with clear good and plain evil—but nonetheless one that is marked by political nuance and literary complexity.” (History Unplugged)
Babrius and Phaedrus Fables (Aesop's Fables), August 23, 2024. 30 minutes. “We don’t have actual writings or fables from Aesop. We do have collections from 600+ years later from these two, Babrius and Phaedrus, who collected, added, and made innovations to Aesop’s Fables.” ()
Appalachian Trail Devastation from Hurricane Helene, October 7, 2024. 32 minutes. I have never been to the trail towns at the south end of the Appalachians, but I do know the importance of small communities elsewhere. There has been surprisingly little coverage of the devastation in these small rural communities. This podcast is oriented toward hikers but this episode provides information that should interest anyone who is looking for information about storm damage. (Thru Hiking Podcast)
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.