Knowledge grows through sharing! To be the best, learn from the best! May all your dreams come true! Collections of Value Investing articles, interviews and videos, especially on Warren Buffett and Charlie Munger and articles from various disciplines to build "Latticework of Mental Models"
The success of Nintendo Wii is a "Black Swan" from my own perspective. I didn't expect that Wii could be so successful, out-selling both PS3 and XBox 360. Maybe some of you have expected that, but humbly, I have to admit that I didn't.
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Learning point:
Technology companies are subjected to extreme and fast changes and "Black Swan" events are happening all the time. However, they are very difficult to predict and the extent of the impact would be massive.
Therefore, it would be extremely but not impossible to value a fast-changing technology companies i.e. Nintendo, Sony, etc.
Warren Buffett likes stable and easily predictable companies i.e. Coca Cola as he could project 10 to 20 years out. Other great investors like Glenn Greenberg, Tom Russo, Li Lu, Bill Nygren, Whitney Tilson, Marty Whitman and others are among members of this camp.
For ordinary investors, it is better to stick to "one-foot hurdle" than "10-foot-hurdle". Great investors like Bill Miller and Eddie Lampert, who are successful in dealing with "10-foot-hurdle" problems, are rare.
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Sales of Nintendo's quirky Wii video game machine could top the legendary PlayStation 2, making it the biggest hit in the industry's history, Nintendo President Satoru Iwata said on Thursday.
Nintendo Co. Ltd. sped past Sony Corp. in market capitalization last month to become one of the 10 most valuable companies in Japan.
Victoria and David Beckham are extremely successful (fame, fortune and likeability) even when compared to other superstars.
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The important learning point for us is to appreciate the power of synergy. Victoria and David are successful by their own right, but their effects are amplified when combined, especially with their strong passion for success.
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Congratulations to you both! And, thank you for being a great example of the power of synergy.
All the best,
David
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Article about Beckhams arriving in LA: Full Article
Triage article is a very good article about prioritising patients to treat.
It gives you an overview of how battlefield medicine works. This principle is also applied to emergency medicine. Imagine you were in accident and emergency department. If you were to suffer heart attack, you want to be treated straight away and not waiting for your queue. If you were to suffer minor cuts, you could wait to be treated.
Triage in fact is equivalent to time management. Do the really important stuffs first that can make an impact.
So how does triage apply to investing?
Warren Buffett said to be a great investor, you have to study all listed companies to find the hidden gems; starting from alphabet A to Z.
However, this may not be the most efficient way.
You have to apply "triage" principle to stock analysis too. You should screen for companies that are hitting 52 weeks low, and these are the companies to analyse first. The other effective way is to study the most recent filings of great investors, i.e Mohnish Pabrai. For example, recent filing showed that Mohnish Pabrai invested over 11.5% of CryptoLogic shares. As he is a great manager and with such a significant investment, it should be the top priority to analyse why he bought so much. If you study CryptoLogic now and think is it worth a lot more, you could buy the company now without paying excessively.