Everything good is almost free

Tuesday, August 30, 2022 Francisco 1 Comments

Buffet turned 92 yesterday

In 1958, Buffett bought his first house for $31,500. Today, he’s worth $100 billion and he lives in the same house.


“There is no dignity
quite so impressive,
and no independence
quite so important,
as living within your means.”
― Calvin Coolidge


The fisherman and the businessman

There was once a businessman who was sitting by the beach in a small Brazilian village.
As he sat, he saw a Brazilian fisherman rowing a small boat towards the shore having caught quite few big fish.
The businessman was impressed and asked the fisherman, “How long does it take you to catch so many fish?”
The fisherman replied, “Oh, just a short while.”
“Then why don’t you stay longer at sea and catch even more?” The businessman was astonished.
“This is enough to feed my whole family,” the fisherman said.
The businessman then asked, “So, what do you do for the rest of the day?”
The fisherman replied, “Well, I usually wake up early in the morning, go out to sea and catch a few fish, then go back and play with my kids. In the afternoon, I take a nap with my wife, and evening comes, I join my buddies in the village for a drink — we play guitar, sing and dance throughout the night.”

The businessman offered a suggestion to the fisherman.
“I am a PhD in business management. I could help you to become a more successful person. From now on, you should spend more time at sea and try to catch as many fish as possible. When you have saved enough money, you could buy a bigger boat and catch even more fish. Soon you will be able to afford to buy more boats, set up your own company, your own production plant for canned food and distribution network. By then, you will have moved out of this village and to Sao Paulo, where you can set up HQ to manage your other branches.”

The fisherman continues, “And after that?”
The businessman laughs heartily, “After that, you can live like a king in your own house, and when the time is right, you can go public and float your shares in the Stock Exchange, and you will be rich.”
The fisherman asks, “And after that?”
The businessman says, “After that, you can finally retire, you can move to a house by the fishing village, wake up early in the morning, catch a few fish, then return home to play with kids, have a nice afternoon nap with your wife, and when evening comes, you can join your buddies for a drink, play the guitar, sing and dance throughout the night!”
The fisherman was puzzled, “Isn’t that what I am doing now?”

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A government big enough to give you everything you want is

Sunday, August 28, 2022 Francisco 0 Comments

 “A government big enough to give you everything you want is a government big enough to take from you everything you have.”

― Gerald R. Ford


“Government exists to protect us from each other. Where government has gone beyond its limits is in deciding to protect us from ourselves.”

― Ronald Reagan







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Why can't large companies maintain their competitive advantages

Friday, August 26, 2022 Francisco 0 Comments

From Scott Davies book , Lessons from the TITANS


In any event, a few days before the tragedies of 9/11, Welch hit mandatory and turned over the reins to his chosen successor, Jeffrey Immelt

Dallas 2003 

I asked Jeffrey Immelt about his life as a CEO of GM 

"Do you wait in line at the Hotel Check -in?"

"No, my forward team handles it and hands me a key when I walk in"

"Do you use the Hotel Gym?"

"No, my forward team flies my fitness equipment down and sets it up in my room"

There is nothing that destroys a culture faster than wasteful spending and celebrity behavior among the executives. Every example of corporate failure we know about included exactly that. What employees see they start to emulate.


The airplane fiasco reported by the Wall Street Journal in 2017, where a backup jet followed him on business trips in case the main jet had problems, exposed just a small piece of excess. In selling NBC in 2009, for example he had an entire Golf course shut down so he and Brian Roberts from Comcast could negotiate in private while playing. Roberts viewed that as highly unnecessary 


It's human nature: any company that thinks it's special, that the ordinary rules don't apply , will eventually stop doing the exceptional work that brought about it's initial success. The distractions of success and celerity can be overwhelming.










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CEO's who behave badly typically run organizations that ...

Thursday, August 25, 2022 Francisco 0 Comments

 CEO's who behave badly typically run organizations that ... behave badly 

Scott Davis at Melius Research

Companies usually fail because of the incompetence and arrogance of a complacent management team, not because they struggled to predict the future...........

So it's important that senior managers focus on what they actually can control: fostering a humble culture that encourages continuous improvement, holding the line on corporate costs, driving toward manufacturing excellence, encouraging extreme customer focus, establishing a disciplined capital allocation process, moving a portfolio toward higher return assets..............


I am in the middle of the book Lessons from the Titans, the great companies are quiet, no great company boasts about corporate culture or claimed any edge they are busy doing their thing and improving their operations. what makes a company a winner is execution excellence and constant improvement.

As they say in the book High profits always attract new entrants so one must be quiet and always doing small improvements. A Star as a CEO is not an advantage it's better to have someone that is in the trenches with the troops. 


Most companies that talk about culture don't have one, at least not a good one.
Scott Davis at Melius Research


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Energy is Life

Monday, August 22, 2022 Francisco 0 Comments


Energy Security is not a priority in Europe. 


The results are in


Feel good politics always ends badly





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China has no oil

Friday, August 19, 2022 Francisco 0 Comments

 


The geopolitical risk premium in oil prices could dissipate very quickly if Russia declares “mission accomplished” with the conquest of Donbas or if the war stalls in the East.

Marko Papic

 

China depends on oil that is shipped to them. Shipped. They have a amateurish navy. If someone blocks Malaca China stops.


Conclusion: I am bullish oil long term because there is no investment  and the world needs oil in order not to starve but short term the geopolitical premium in oil is eroding.




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The modern caste system is built around the university diploma.

Thursday, August 18, 2022 Francisco 0 Comments

These days to be an apprentice is not accepted because Apprenticeships don't have the same status as a diploma. unfortunately. 

 

The modern caste system is built around the university diploma.

@ naval

Free education is abundant, all over the Internet. It's the desire to learn that's scarce

If the primary purpose of school was education, the Internet should obsolete it. But school is mainly about credentialing



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15 years without a profit

Tuesday, August 16, 2022 Francisco 0 Comments

 

The iShares MSCI Emerging Markets ETF seeks to track the investment results of an index composed of large- and mid-capitalization emerging market equities.





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The mind gives up before the body.

Monday, August 15, 2022 Francisco 0 Comments

From my bike races I know this is true the mind gives up before the body, when I see someone in the horizon it means that I am going to take him soon and just like that all the pain in the body disappears. That is why to be an optimist is the best quality one could possess.


From Medium, (Crystal Nichols)

Today taught me an important lesson:

Your mind tells you lies.

My mind gave up and was telling me stories to convince me I couldn’t do the show. But my body didn’t fail me. Even with the conflicting messages my mind was sending, my body carried on, secure and confident in what it already knew it was capable of.


"The mind gives up before the body."

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Never short a dull market

Sunday, August 14, 2022 Francisco 0 Comments

 From Sahil Bloom

The Paradox of Boredom The most creative, captivating ideas stem directly from periods of intense boredom. You’re bored, your mind wanders, your thoughts mingle--creative insight strikes. Boredom sparks creativity. Schedule boredom into your weeks.


In the stock market all the gains have been made in boring days!




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The Horrors of capitalism

Wednesday, August 10, 2022 Francisco 0 Comments

 








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Think what to do before you ...........

Tuesday, August 09, 2022 Francisco 0 Comments

 Sometimes, all you need to do is sit, think, and read. Don't trade too much. It harms your investment results.




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Stanley Druckenmiller: Never, Ever Invest In The Present

Tuesday, August 09, 2022 Francisco 0 Comments

 If you're a trader, perhaps you'd prefer the advice of Stanley Druckenmiller: "Never think in the present, that's a good way to lose money. If you're buying things that are popular and have great current earnings, you'll tend to lose money when things change because everyone else is long them too."Jul 29, 2022


Here's what he said further...

  • 'The present it's not what moves stock prices, change moves them, and I want you to try and envision a different world in a year and a half from now, and where these security prices would trade versus now given the world you envisioned.'

I have written many times that it's impossible to make money listen to news , if we can read the next year news we could make money. So how to make money? Imagine a future that is not here now. You need to obsess about the future. You need to figure out what change is likely to happen over the next 3-5 years or even more, that will move stock prices significantly higher or lower.



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Work will work when nothing else is working

Monday, August 08, 2022 Francisco 0 Comments

Talent works at the beginning, the talent person starts well. After a while the working person passes the talent person. On the long run the hard work always wins.





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He who will not economize will have to agonize

Friday, August 05, 2022 Francisco 0 Comments

 “I have learned to seek my happiness by limiting my desires, rather than in attempting to satisfy them.”

― John Stuart Mill


In sports I have found out that to eat badly & to do sport to compensate kills you. It's much better to eat well, to eat little and do median effort sports. You are in shape easily with this technique.

I tried to eat a lot & drink and do lot of sports, hard sports to balance  is a receipt for disgrace. You body can't keep up with this roller-coaster.

with money is the same, if you spend a lot you have to make a lot and you have a lousy life.

most of the good things in life are almost free , time, health , etc... don't spend money on stupid things.


To spend thousands of USD in a watch is just stupid, to spend money in expensive car is also almost as stupid. Just live and do everything possible to be under the radar.


“he who will not economize will have to agonize”
― Confucius


From 

Humble Flow


Avoid lifestyle creep Never allow lifestyle creep to eat away your wealth. As you earn more money, save more money. You will be tempted to spend more money because you can, but don't allow your mind to trick you. Control your expenses before they control you.

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Greed

Wednesday, August 03, 2022 Francisco 0 Comments

 





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