For Whom Wealth Matters
February 13, 2011 2 Comments
Here is something I came across while browsing today : http://www.giveasyoulive.com/ .I’m really not upto scratch with internet technologies.So could anybody who knows more please tell me about similar applications or programmes?I found this pretty interesting, just the 10-50% haircut made me pause.Has somebody any idea of how much developing something like this cost?Is there some free version available?
February 13, 2011 6 Comments
This post is in reply to this post http://goodnewsforisla.wordpress.com/2010/12/11/day-58-billions/ and other articles in a similar vein.
To quote from the above post:
Here are a few facts about billionaires and the wealthy (taken from ‘The Hole In Our Gospel ‘by Richard Stearns).
1) Today’s 1,123 billionaires hold more wealth than the wealth of half the world’s adult population.
2) The wealthiest 7 people on earth control more wealth than the combined GDP (Gross Domestic Product) of the 41 most heavily indebted (poor) nations.
3) The poorest 40 percent of the world’s population accounts for just 5 percent of the global income. The richest 20 percent accounts for three-quarters of the world’s income.
These facts are staggering when you consider the disparity between the wealthy and the poor. If only those that were extremely wealthy would share their wealth, perhaps the poor wouldn’t be as poor. The sick could be cured. Thirst could be quenched, and hungry tummies fed.
Please consider the following points:
(1) Billionaires hold about one percent of the world’s house hold wealth( source:http://www.ppionline.org/ppi_ci.cfm?knlgAreaID=108&subsecID=900003&contentID=254950).So what would happen if all the world’s rich gave away their wealth?Something like this…..The world’s richest man Carlos Slim Helu has a estimated networth of less than US$60billion.There are some six billion souls on earth.So if we were to distribute his money amongst all the people of the world,each person would get an additional US$10.And if instead of all the people if we were to give the money to only the poorer 50% ,each person would get US$20.Still money but not that much….. Read more of this post
February 12, 2011 7 Comments
‘Poor Charlie’s Almanack – The Wit and Wisdom of Charles T. Munger’ is a compilation of essays, memoirs, interviews, and speeches regarding Warren Buffett’s closest friend and business partner, Charles T. (Charlie) Munger , edited by Peter D.Kaufman.
Charlie Munger is an admirer of Benjamin Franklin,and the book’s title is a tribute to Franklin’s ‘Poor Richard’s Almanack.’
This is a big’ heavy coffee-table book with well over 500 pages.It’s pretty heavy reading and best left in the library.Reading the book cover to cover is only for serious Munger fans.
Thumbing through the book I figured that the only solid take-aways I could get without knocking myself out by tackling this formidable book were (1)Mungerisms,(2)The concepts to be mastered to apply the Multiple Mental Models to think better and (3)A checklist of investing principles. Read more of this post
February 12, 2011 1 Comment
This is an investing principles checklist from ‘Poor Charlie’s Almanack’.I think it bears reading at frequent intervals just to ensure we aren’t doing something incredibly stupid or failing to do something basic that could better our investment records.
Independence – “Only in fairy tales are emperors told they are naked”
Preparation – “The only way to win is to work, work, work, work, and hope to have a few insights”
February 12, 2011 7 Comments
Here is my list of “Mungerisms”.Over time I have used many of them to my advantage and the rest are in my list as reminders of ways I could improve my condition or as cautions against folly.I hope you too find them just as helpful as I do.
(2)”Using [a stock’s] volatility as a measure of risk is nuts. Risk to us is 1) the risk of permanent loss of capital, or 2) the risk of inadequate return. Some great businesses have very volatile returns – for example, See’s [a candy company owned by Berkshire] usually loses money in two quarters of each year – and some terrible businesses can have steady results.”
(3)”I think that, every time you saw the word EBITDA [earnings], you should substitute the word “bullshit” earnings.”
(4)“Warren talks about these discounted cash flows. I’ve never seen him do one.” “It’s true,” replied Buffett. “If the value of a company doesn’t just scream out at you, it’s too close.”
(5)”If you buy something because it’s undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value. That’s hard. But if you buy a few great companies, then you can sit on your ass. That’s a good thing.”
(6)”We bought a doomed textile mill [Berkshire Hathaway] and a California S&L [Wesco] just before a calamity. Both were bought at a discount to liquidation value.”
(7)”For society, the Internet is wonderful, but for capitalists, it will be a net negative. It will increase efficiency, but lots of things increase efficiency without increasing profits. It is way more likely to make American businesses less profitable than more profitable. This is perfectly obvious, but very little understood.”
(8)”Virtually every investment expert’s public assessment is that he is above average, no matter what is the evidence to the contrary.” Read more of this post
wealthymatters 