Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Berkshire Hathaway

The Death Spiral

Real Estate Bubble on the Coasts

The difference is that this real estate boom is confined to specific parts of the country; it is not happening on Main Street, and the middle class is not participating.

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Long Ideas

Musk Aims to Disrupt the Electricity Market

Both Tesla and SolarCity are losing a lot of money, and both could be in serious trouble if Mr. Musk cannot figure out a way to start generate cash and a lot of it—and fast. Musk has taken a very bold gamble here; he’s essentially betting two of his companies on a fundamental shift in the way the world gets electricity. If that change does not occur, both Tesla and SolarCity will find themselves caught in the death spiral.

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Market Insanity

Is Bank of Internet a Value Investment?

The number of delinquent loan balances at BOFI doubled between June 30, 2014, and September 30, 2014, which indicates that the bank’s loan book could quickly melt down.

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Market Insanity

The Strange, Brave New World of WWE and Digital Entertainment

The numbers indicate that WWE CEO Vincent Kennedy McMahon Jr. is some sort of visionary at the cutting edge of entertainment. He seemed to have the insight that wrestling fans would be willing to pay a flat rate of $9.99 a month for just the programming they wanted to watch.

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Good Stocks

What Is Going On at Walmart?

The only U.S. retailer that reported more TTM revenue growth than Walmart was Amazon.com Inc. (NASDAQ: AMZN). The online giant’s TTM revenue grew by $14.45 billion between December 2014 and December 2015. Amazon reported a TTM revenue of $74.45 billion in December 2014 that grew to $88.99 billion by December 2015.

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Long Ideas

What Will PayPal Do Next?

Something else that is also obvious is that PayPal would be an acquisition target; purchasing it would give a large bank, retailer or credit card company access to a vast financial network and tens of millions of potential customers.

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Politics

A Few Things That You Need to Know about Obamacare

All this being said, Obamacare is a very poorly designed and highly ineffective program that will fail. From what I have seen of it, it is clear that those who designed Obamacare have no real understanding of the realities of American business, economics, healthcare, and insurance.

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My Thoughts

California’s Megadrought, Why There’s No Water Shortage and Why the Market Could Be the Solution

We now have a glut of oil, and there’s a very good chance we’ll have a glut of water in a few decades after we implement all the new technology.

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Market Insanity

Is This Newspaper Company Warren Buffett’s Next Acquisition Target?

My prediction is that Buffett will make a bid for Tribune Publishing sometime this year. It seems like too tempting a bargain for him to pass up, and it operates in an industry he is passionate about: newspapers.

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