“We have listened to the wisdom of an old Russian maxim, doveryai, no proveryai – trust, but verify.” — Ronald Reagan Trust is the foundation of society. Without a basic level of trust regarding the intentions and expected behavior of other human beings, our modern civilization would very quickly disintegrate into total chaos. If you
Much of what we do as investors involves studying businesses and critically evaluating the returns that are likely based on management’s competitive strategy. The elusive search for true “moats” is often frustrated by quick technological change which can make yesterday’s incumbent firm today’s dinosaur. Investors who pay a rich valuation for a business with a moat must be confident that the advantages leading to high returns today are not destroyed by new types of competition in the near term. Smart phones may soon threaten to drive retailers without a coherent competitive strategy to extinction.
Many readers will relate to this scenario: The printer is hard at work producing a 100+ page SEC Filing when the room becomes strangely silent. Surely not enough time has passed to signal a completion of the job? Sure enough, the printer has run out of paper, depleted its toner, or may even require a new drum unit. The only positive aspect of the breakdown is that fewer fine particles of indoor air pollution are being produced, at least for the moment. Surely there must be a better way? We think there is: The Kindle 3 from Amazon.com. Read this article for more details.