Without crashing the economy

Last year the major financial story was stubbornly high inflation. In 2023, we’ve seen continual improvements as inflation […]

It’s easier when you already have customers

There’s tremendous excitement about the possibilities for AI in business. One of the most common […]

Nvidia drives a new wave of infrastructure investment.
When we first bought Nvidia in 2017, the catalyst was that large companies started buying Nvidia Graphics Processing Units (GPUs) for processing data for artificial intelligence (AI) calculations (see more here in our 2017 letter). Since the company’s products had traditionally been used for video games...

Riding out the bumps and valleys
What’s the “cost” of investing in stocks as a passive partner in a business? Passive, in the sense that we can buy and own a small percentage of large businesses, while the employees work and create for our benefit.

Using Artificial Intelligence to Get Things Done
There’s a lot of hype around Artificial Intelligence, particularly lately with OpenAI’s ChatGPT. Whenever there’s hype, there’s often a backlash. The main criticisms I’ve heard are either “it gets things wrong, so it’s useless” or “robots will take everyone’s jobs and kill us all!”

They benefit long-term owners of great businesses
Everyone loves dividends. Buybacks don’t get the same affection—but they should. This is probably because they’re a bit misunderstood.

Stocks go up 3 years out of every 4
The majority of people who could invest in stocks don’t do it. They perceive that the risks are too high and they settle for lower returns that promise a smoother ride.

What do Banks, Custodians, and Brokers actually do?
The last few weeks have brought heightened scrutiny of the companies we trust with our money. Each time there are high profile bank failures – today, 2008, the S&L crisis – savers, investors, and regulators are forced to ask questions about how our system is organized, regulated, and insured. 

Two extremes don’t equal balance
The Federal Reserve has been implementing emergency policies for over a decade now. In plain terms, they kept short term interest rates extremely low and made it easy to borrow. 

They often have
Last week Evan McGoff made the reasonable argument that a recession is unlikely when so many economic indicators trend higher, not lower. The bearish (pessimistic) view is that these same indicators will result in higher inflation readings and the Federal Reserve will keep raising rates until there’s a recession.