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Cake day: October 11th, 2023

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  • In the short term, the market is a voting machine, but in the long term, it is a weighing machine” - Benjamin Graham (“father” of value investing and mentor to Warren Buffett)

    Meaning that in the short term, stock prices can be swayed from a company’s true value by investors’ emotions and opinions.

    But eventually the stock price will align with the company’s actual profitability and growth potential.

    And you’re right that these are crazy times, and the “short term” irrationality can last a lot longer than past experiences.

    Historically, we’ve used examples like the 17th century tulip mania, or the dot com boom, but it won’t surprise me if Tesla becomes the poster child for this quote in the future.







  • The problem is that people who stand up to Trump don’t last long. It’s far worse if Trump perceives he’s the one being controlled like he’s “on a leash”.

    That’s why Trump had such a massive staff turnover in his first term. For example, over 90% of his original cabinet were fired or pressured out.

    On top of that, many of Trump’s picks were imprisoned or indicted. So the odds aren’t good that his people will do the right thing.

    It’s already looking to be far worse this time, especially given the corruption we’ve already seen from him since winning the election, and before he’s even in power.