Do not take the seeds and throw away the melon. - Traditional Chinese Proverb A few decades ago, Coca-Cola, one of the most profitable companies in the history of the world from a return on equity standpoint, decided that instead of repurchasing its own shares or increasing the dividend, it would diversify into other operations that it knew nothing about and in which it had no strategic or competitive advantage. This resulted in the soft drink company buying a movie studio, farming shrimp, … [Read more...]
The True Test of Greatness Comes in the Heart of Winter
June 30, 2010 By Leave a Comment
Only in winter do the pine and cypress show they are evergreen. - Confucius points out that all trees are green when times are easy, Spring and Autumn Period When you are managing your business, your life, or money, the true test of your ability and talent will come during the bad times. Have you managed your liquidity well enough so that even the worst depression won't wipe you out? Have you conducted yourself with restraint so you don't find yourself buried under interest expense on credit … [Read more...]
The Concept of Mental Models Goes Back Thousands of Years
June 30, 2010 By Leave a Comment
You are only playing a single note. You should find others who can teach you how to use the other holes in your intellectual flute. - Zi Yu accuses Prince Mou of having a one-track mind, Zhou Dynasty When Charlie Munger talks about the importance of "mental models", he is espousing the same wisdom shown by Zi Yu thousands of years ago. The reality of the world is that the richest, most powerful, most influential, and most famous are often not the most intelligent. Instead, they have … [Read more...]
Wisdom for the Day – 06/30/2010
June 30, 2010 By Leave a Comment
The straightest tree is the first to be cut down. The well with the sweetest water is the first to be drained. - Duke Ren, Spring and Autumn Period A state that is great carries the seeds of its demise, just as a giant tree singles itself out for the blow of the axe. Weakness brings life, strength brings death. - Lao Zi, Spring and Autumn Period In good times, the wise man works for the state. In bad times, he looks after himself. - Jie Yu, Spring and Autumn Period Building a house … [Read more...]
My Reflections on Christian Legal Society Chapter of University of California Hastings College of Law v. Martinez Supreme Court Ruling
June 28, 2010 By 1 Comment
Back in college, when I was the student body treasurer and chairman of the finance board, a Christian group known as Campus Crusade for Christ threatened to sue the university because they wanted to be officially recognized. The problem was they required that their elected leaders leaders sign a personal "Statement of Beliefs" pledge that included a provision affirming that homosexuality was a sin and the leader did not engage in immoral sexual conduct. This went against the university's … [Read more...]
The Supreme Court Is On a Roll Today … Rulings on “Guns, God, and Gays” All In a Single Morning
June 28, 2010 By Leave a Comment
In addition to the Kagan confirmation hearings this morning, did anyone notice the opinions the Supreme Court of the United States of America released today? Two major ones that have been watched very closely in conservative and liberal circles alike were decided on 5-4 decisions. McDonald v. City of Chicago: The court ruled that laws banning gun ownership in private homes for self-defense go too far and are unconstitutional under the second amendment. I have to agree with the majority on … [Read more...]
Just Bought a New iPhone 4
June 28, 2010 By Leave a Comment
A few seconds ago, I submitted my order to the online Apple store for a new 32 gigabyte black iPhone. It will take three weeks to ship and another five business days to arrive, so I probably won't get it until the back-half of July but I'm not in any particular hurry and it saves me from having to wait in a store for one. It turns out that I had to travel without my iPhone the other day and, although I thought I didn't use it that much, when I'm actually out in public, it turns out that I … [Read more...]
This Is Why I Love Jay Chou
June 28, 2010 By Leave a Comment
Jay Chou is one of my favorite musical artists (even though iTunes doesn't have much of his music on it the last time I checked). Anyway, at roughly 2:20 into the video ... most of America's pop royalty lack the musical education and technique to do this. The clip is from the film The Promise. The two characters are having a piano duel with one playing something and the other having to repeat it or best it. Here is some of his more popular pop-music / adult contemporary: … [Read more...]
How Much Money Is Rich?
June 26, 2010 By 1 Comment
Here are some quotes I've come across the past few days online and elsewhere. What do you all think? ... I'm not entirely decided on all of them ... "Being rich is being able to buy whatever you really want, whenever you really want it." - Robert Reich "There are two ways to be rich: One is to have great wealth, the other is to have few wants" - Anonymous "Being rich is the ability to live the lifestyle that is comfortable to you without ever having to work again unless you wish … [Read more...]
Hobson’s Choice, Morton’s Fork, and Burdian’s Ass
June 26, 2010 By Leave a Comment
Hobson's Choice: A free choice in which only one option is offered; i.e., "take it or leave it". Morton's Fork: Is a choice between two equally unpleasant alternatives (in other words, a dilemma) or two lines of reasoning that lead to the same unpleasant conclusion. It is analogous to the expression, "between the devil and the deep blue sea," and "between a rock and a hard place". Buridan's Ass is an illustration of a paradox in philosophy in the conception of free will. It refers to … [Read more...]
I'm a private investor who loves architecture, furniture, clothes, history, philosophy, books, cooking, and music as much as I do finance. 
