The Philosophical Investor's Blog

Inflexibility When you Need it Least

Inflexibility

I have often made the case that apartments and home rentals are highly valuable because of the flexibility they provide people to move for whatever reason. Housing became way over-owned in the 2000s and this did great damage to our economy and society. I finally came across some interesting research that explored how damaging it was for underwater homeowners in terms of limiting their geographic flexibility to seek out employment and how this impacted their long-term earning power.

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Posted in Apartments, Economy, Investing, News, Wealth


Winner Take Most – Can Firms Gain a Large Share of the Market?

Google Firms

Income inequality has many economic and societal impacts. When more wealth is concentrated in fewer hands, this can negatively impact aggregate demand as a large percentage of marginal dollars earned are saved versus spent. And since one person’s spending is another person’s income, a growing pool of savings will lower aggregate demand unless one or more sectors of the economy spend more than it earns as output will go unsold and have to be marked down for it to clear.

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Posted in Advice, Apartments, Economy, Manufacturing, News, Trends, Uncategorized, Wealth


Zero Sum Thinking – Winner Take All

It’s pretty clear that Donald Trump views virtually everything from the prism of winning and losing. And every issue is looked at with a very short term horizon. There does not appear to be any satisfaction derived by developing a long-term strategy, methodically implementing it, and seeing the seeds planted blossom into a beautiful garden that is sustainable and beneficial to all.

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Posted in Advice, Economy, Interest Rates, Investing, Manufacturing, News, Retirement, Stock History


Hold Your Judgments Lightly In a State of Disequilibrium

Disequilibrium Judgements

This blog post was inspired by one recently written by Dilbert creator Scott Adams. He is now a must read for me. He is such a brilliant guy and was so right about Trump that I will forever hold him in the highest of esteem.

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Posted in Economy, Investing, News, People, Trends, Wealth


The Gift of You – Now And In The Future

Gift GuitarWhen I wrote my book the target audience was deep pockets and deep thinkers. My choice of blog subjects tends to oscillate between the two. This week caters more to the latter than the former.

The Gift of You

When one has gained clarity about what gifts one can offer the world and then designs one’s life to utilize them in ways that benefit others,

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Posted in Advice, Investing, News, People


Pedigree or Motivated Outsiders – Who Makes the Best Money Managers?

pedigree-or-motivativated outsiders

Carl Icahn has clearly done enormously well over the years in compounding capital through his highly aggressive, activist approach to investing. He is not shy about expressing his opinions, sometimes in a Trumpesque manner, to call out underperforming management teams, changes he thinks they should make to increase returns to shareholders and the performance of the business,

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Posted in Advice, Economy, Investing, News, Trends, Wealth


Fanatics, Emotions, and It’s Impact on Your Decision-Making

emotions Gary Carmell

With the college football NCAA National Championship game taking place on January 9, 2017, I thought it would be apropos to write about a fascinating study about how emotions can negatively impact people’s lives when decisions are made. The paper is called Emotional Judges and Unlucky Juveniles.

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Posted in Advice, Economy, Investing, News


Safe Space – Can We Watch Things Unfold from a Safe Distance?

Safe Space - Gary CarmellI recently read about Tesla’s autopilot software update being able to look one and two cars ahead to determine if they are safe or at risk of an accident and, if so, this would then trigger the Tesla to slow down to avoid it. A driver in the Netherlands had a dash cam that was able to take a video of this situation unfolding on the Autobahn and how the Tesla was able to avoid it independent of the driver’s observations and reactions.

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Posted in Economy, Investing, News, People, Trends, Uncategorized, Wealth


Rand, Soros, Munger, Dalio, and The Founding Fathers

Rand

Like most people, especially investors, I’ve been wondering about whether there is a philosophical prism through which Donald Trump sees the world other than through deals and negotiations. In business, especially in real estate, there are often objective outcomes to shoot for to know if you are winning,

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Posted in Advice, Economy, Investing, News, People, Trends


See and Wait

Monitoring-see-wait-b

Not surprisingly, the Fed pulled the trigger and raised short-term interest rates by 0.25% for the first time since last December. I thought I would convey what I think are the most pertinent variables to be monitoring in the wake of the Fed tightening. I’m calling this blog post “See and Wait” as I will be showing many charts and opine on some of the ramifications but we will have to wait to see how it unfolds in the real economy.

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Posted in Economy, Interest Rates, Investing, News, Stock History, Trends, Wealth


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