Links - 10/11/2022
“The more successful a company becomes, the more difficult it is to continue the record: Competition, governmental controls, and increasing market saturation all play a role in slowing growth. Too, a management team skilled a t running a rapidly growing $50 or $100 million corporation may be lost at the $300 to $500 million sales level. Product and markets seemingly invulnerable to competition are suddenly inundated by it. Untouchable patents are circumvented by new discoveries. Costs cannot be controlled and prices cannot be raised, so profit margins are squeezed. Markets that appeared open for years of brisk growth become saturated. Political or economic events occur, such as an oil embargo or a sharp recession, totally beyond the control of even the most astute management, wreaking havoc in the marketplace. History constantly reminds us that in an uncertain world there is no visibility of prospects. Future earnings cannot be predicted with accuracy. As we have seen with high-expectation companies that have negative surprises, the best companies can be terribly overpriced and can be drastically reappraised.” —David Dreman (“Contrarian Investment Strategies: The Next Generation”)
A 1998 Michael Burry memo on Berkshire Hathaway [H/T @72types] (LINK)
Elon Musk, Warren Buffett, and the Unbreakable Berkshire Handshake (LINK)
Greenlight’s David Einhorn on Value Investing, Inflation (video) (LINK)
The Network Effects Bible (Updated 2022) [H/T @HurriCap] (LINK)
The Network Effects Masterclass (LINK)
Ferrari's 2030 Electric Shock (LINK)
Solvency Constraints - by Joseph Wang (LINK)
Invest Like the Best Podcast: Madhavan Ramanujam - How to Price Products (LINK)
Ben Franklin’s World Podcast: 340: Nicholas Guyatt, Prisoners of War and the War of 1812 (LINK)
Little Rules About Big Things - by Morgan Housel (LINK)
“Never let the future disturb you. You will meet it, if you have to, with the same weapons of reason which today arm you against the present.” —Marcus Aurelius