The Digest #222
Berkshire Hathaway's Q3 Results, BRK 2X Long Daily Target ETF, Presidential Election Polling, Online Speech, Price Controls, Shakespeare's Caesar, Musk and SpaceX, Micro-Cap Investing, and more ...
Quote of the Week
“No man ever steps in the same river twice, for it’s not the same river and he’s not the same man.”
― Heraclitus
Articles
Berkshire Hathaway’s Q3 2024 Results were released over the weekend. I no longer provide commentary regarding Berkshire’s quarterly earnings but I have included links to the filings for the convenience of readers. BHE and BNSF file separate reports with the SEC which may be of interest to Berkshire Hathaway shareholders.
More Than Meets The Eye: Berkshire Hathaway's Q3 2024 Earnings Report by
, November 4, 2024. Many media reports failed to pick up on nuances such as the $14.9 billion liability line item for purchases of treasury bills that had not yet settled as of September 30. Kingswell provides the correct cash balance and makes other interesting observations. (Kingswell)Tidal files for first leveraged Berkshire Hathaway ETF by Alex Crippen, November 1, 2024. I can only imagine what Charlie Munger would say about this grotesque product: “Tidal Trust's Kick BRK 2X Long Daily Target ETF (BRKX) says it will seek ‘daily leveraged investment results of two times (200%) the daily percentage change in the share price’ of Berkshire's Class B shares using derivatives.” 🤮 (Warren Buffett Watch)
Presidential Election Polling. Final polling indicates a close race, with the contest likely to be decided in a handful of swing states. Making financial commitments based on speculation regarding who might win is dangerous. One would have to be correct regarding who will win AND the market’s reaction. I have my own guess regarding who will win an electoral college majority, perhaps more comfortably than many expect, but I’m not betting a dime on the accuracy of my crystal ball. (538)
Stepping into the River, November 1, 2024. I have read Ben Graham’s The Intelligent Investor on multiple occasions over the past thirty years. What I have taken from each reading has depended on my life experiences and circumstances. (The Rational Walk)
To save our democracy, we must get rid of online anonymity by Mark Weinstein, November 2, 2024. The idea that curtailing online speech is essential to preserving democracy will invite tyranny in the long run, no matter how many “protections” are put in place. Many of the most important documents published during the revolution were anonymous or had pseudonymous bylines in newspapers. (The Hill)
Pseudonyms on Social Media, November 16, 2023. I wrote this essay after Nikki Haley proposed restrictions similar to what is suggested in the above article. The fact that a supposedly “conservative” Republican proposed such measures demonstrates that members of both political parties are in favor of heavy handed government controls when it suits their agendas. (The Rational Walk)
The Dangers of Price Controls by Henry Hazlitt and Brian Wesbury, September 2024. “The first thing to be said about price and wage fixing is that it is harmful at any time and under any conditions. It is a giant step toward a dictated, regimented, and authoritarian economy. It makes impossible arrangements that both sides are willing to agree to. It sets aside contracts that have already been made in good faith. If an employer wishes to give a man a raise in pay, and the man deserves it, he is nonetheless forbidden to do it under the new regulations. This is a grave abridgment of individual liberty.” (Imprimis)
, October 31, 2024. “Phnom Penh is a young city chock full of kids. They are everywhere, and they bring a positive energy, warmth, and joy that no amount of adult diversions — no amount of bars, casinos, exceptional cuisine, and museums — can replicate, because nothing warms the heart like a big smile from a tiny face. I don’t care how silly and maudlin that sounds, because it’s simply true, at an innate and an intellectual level.” (Chris Ardane Walks the World)Podcasts and Videos
Will America Fall Like Rome? Shakespeare's Caesar Explained, November 1, 2024. I enjoyed this lecture by
which is really much more of an analysis of Shakespeare’s Caesar than a commentary on the similarities between the United States and the late Roman Republic. That being said, the lecture brought to mind many of the concerns that I had when I read The Storm Before the Storm by Mike Duncan a couple of years ago. I wrote a brief review of that book in September 2022. (YouTube)Elon Musk and The Early Days of SpaceX, November 1, 2024. 1 hour, 3 minutes. I have been critical of Elon Musk’s financial machinations and standards of corporate governance, but there is no doubt that he is an exceptional risk taker. It is interesting to observe how the mainstream media narrative regarding Mr. Musk has completely flipped since he endorsed Donald Trump for President. (Founders Podcast)
David Senra: The Hard Way is The Right Way, October 31, 2024. 1 hour, 22 minutes. “David Senra is in pursuit of one goal: helping people learn from history's greatest entrepreneurs. In a world obsessed with quick wins and overnight success, David has spent eight years building Founders podcast and distilling decades of sage advice. David joins us to connect the dots between sport's GOATS and business legends, and as it turns out - being slightly crazy about your craft is a universal key to success.” (Glue Guys)
A Deep Dive into Micro-Cap Investing, October 31, 2024. 59 minutes. “In this episode, we sit down with Ian Cassel, founder of MicroCap Club and Intelligent Fanatics Capital Management. We explore the fascinating world of microcap investing, where Ian shares his expertise in finding and investing in ultra-small public companies.” (Excess Returns)
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