While the expectation of investors is to receive periodic financial reports from investees, in reality few of the raw numbers in those reports are what we’re interested in, but instead ratios of those values.
In the fight to eliminate global poverty, a statistic often quoted is the World Bank’s claim that the poverty rate is below 10%. True, but only when measured against a global poverty line of $2.15 per day. $2.15 is about the same as American’s spend per day on their dogs and cats. Progress is still positive if you pick a more realistic poverty line, but at $3.65 there are nearly 2...
Half of all the CO2 emitted annually come from just 10% of the global population. Not surprisingly, from the richest 10%. And in case you think you are not rich, this is the top 10% global income, which is 99% of everyone living in the U.S., Canada, Europe, Australia, New Zealand, and Japan. The “Global North”. Meanwhile, most of my work is spent focused on Africa, where 90% of the...
I’ve talked about the proverbial hockey stick growth in years past, as well as the challenges of predicting the future, but what I’ve yet to mention is the tendency to expect future growth to be linear rather than exponential. Above are four graphs of four technology products, three of which which have seen exponential growth in the last few years: Solar panels (PV), Electric cars...
AI is a tool. A misnamed tool at that, as the AI in the news these days is a complex web of statistics and matrix multiplication that resembles human intelligence, but which is far from actually intelligent. They are big, innovative, step-function-changing tools, like the printing press vs. hand copied books, like the typewriter vs. hand copied letters, like word processors vs. hand typed...
The more I dig into the history of Berkshire Hathaway, the more it looks like Warren Buffett’s strategy is opportunism vs. innovation. For example, the reason Buffett operates one holding company instead of three was a run in with the SEC, as I explained in an earlier post. The reason he runs Berkshire Hathway instead of just owning it through Buffett Partnerships LLC is an even earlier...
Hans Rosling was an impressive public speaker, with not just an ability to distill complex topics into easy to understand stories, but to do so with a flair of showmanship. One of the many lessons in those stories was the fact that the world is no longer divided into “developed” and “developing” economies, but is instead is now a world with a continuum of incomes. What...
It’s been over a decade since I was part of the venture-backed tech industry. The only thing I miss about it is the massive amount of attention it receives, and from that, the orders of magnitude more capital that flows to tech startups vs. any other sector. Meanwhile, there is nothing like a decade of decompression and deprogramming to get a better view of the realities of the whole tech...
I was born in the State of New Jersey, a few tens of miles from New York City. In the many years growing up there, I don’t once recall anyone ever comparing it to the original Jersey, nor anyone ever talking about visiting the Island of Jersey, which gave New Jersey its name. Then last September I was networking at an African investment conference in London and serendipitously met a fellow...
After finishing Buffett: The Making of an American Capitalist by Roger Lowenstein, I’m confident that Warren would be quite pleased that I managed to pick up a used copy for just 75ยข at my local library. Warren may be one of the 10 richest people on the planet, but Warren Buffett loves a bargain. Like most owners in Berkshire Hathaway, before reading this book I knew a little about Buffett...
