Friday, February 18, 2011

Howard Marks of Oaktree Capital at UCLA

Highly Recommend it

A quote of Buffett applies aptly to current stock market exuberance

" The less prudence with which others conduct their affairs, the greater the prudence with which we should conduct our own affairs "

Thursday, February 17, 2011

Quotes from Charlie Munger

Ben Bernake explaining monitary policy

I am sure many will not find anything new in this speech and answers. But it makes a difference to me when someone interprets what Bernake is trying to do vs Bernake explaining what he is trying to do.

Conclusion stays the same: We have a very powerful force....the Federal Reserve trying to prop up prices of any/every asset.....the only reason they are able to do so is because lenders are still willing to lend to US at a cheap interest rate and US still has a AAA credit rating. How long that will continue..... nobody knows.

I can't be an expert at economics but when such a powerful force is out there to create inflation then that is what will occur......and as Charlie says you can never just do one thing in financial markets..... there are always consequences...

Monday, February 14, 2011

New York Fed Macro data

Especially check out charts under Household Debt and Credit > " Consumer Debt" + "Delinquencies"

The data proves the fact that banks are holding back and not foreclosing on delinquent homeowners.

Also it shows an amazing growth in the amount of Home Equity debt and Student Loan taken on during the last 10 yrs. This might also explain the success of the online education universities plus the student loan delinquency rates.

I would recommend bookmarking this page as it has some excellent data.

Sunday, February 6, 2011

Buffett on stock market....way back in 1999

The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors.