tag:blogger.com,1999:blog-5389144729834496735.post9152739737562687490..comments2024-03-17T05:15:55.634-04:00Comments on The Brooklyn Investor: World War III and the Stock Market (and other random thoughts)Unknownnoreply@blogger.comBlogger18125tag:blogger.com,1999:blog-5389144729834496735.post-54029761923277621962014-03-08T20:52:02.970-05:002014-03-08T20:52:02.970-05:00Hi,
Thanks. That's a good point; things can...Hi, <br /><br />Thanks. That's a good point; things can't keep going up above inflation every year. That's what happened to healthcare cost and it hit a ceiling recently. <br /><br />I think the point with these companies that have pricing power is that they have pricing power enough to offset cost. Their margins don't necesarily keep rising for 100 years, right? And if prices don't grow above inflation, they should be able to manage cost to maintain margin etc... <br /><br />So that's the way I would think about it. <br /><br />Thanks for reading. kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-82719122170257415142014-03-08T18:07:05.431-05:002014-03-08T18:07:05.431-05:00Hi kk,
This is a brilliant writeup. If you haven&...Hi kk,<br /><br />This is a brilliant writeup. If you haven't link it recently, I could have missed it.<br /><br />BTW, there is a dilemma that has been puzzleing me for some time. Some great businesses are great because they can increase prices above inflation. Eg. Coke, Sees Candy. But surely that can't continue indefinitely, right? At some point coke price has to grow in line with inflation. Otherwise a can of coke will become too expensive relative to other goods. If you have a meal, its OK the main dish cost $10 and the drink $2. But its not if the main is $10 and the drink is also $10. You would rather to have a full stomach than satisfy your crave. Thoughts?Johnhttps://www.blogger.com/profile/14682393043392310140noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-75806982734383086842013-04-18T05:06:32.284-04:002013-04-18T05:06:32.284-04:00This is a really good read for me. Must agree that...This is a really good read for me. Must agree that you are one of the coolest blogger I ever saw. Thanks for posting this useful information. This was just what I was on looking for. I’ll come back to this blog for sure!<br />Investing stockshttp://www.sanasecurities.comnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-79642402940293227522013-03-19T01:40:15.182-04:002013-03-19T01:40:15.182-04:00This page is very informative and fun to read. I a...This page is very informative and fun to read. I appreciated what you have done here. I enjoyed every little bit part of it. I am always searching for informative information like this. Thanks for sharing with us.Stock Tipshttp://www.capitalheight.comnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-6236208405737571602013-03-04T03:25:57.047-05:002013-03-04T03:25:57.047-05:00This article is full of excellent informative cont...This article is full of excellent informative content. The points you make are interesting and original, and I agree on many of them. Thank you for writing on this topic.<br /><br /><a href="http://www.stvincentibc.com/" rel="nofollow">offshore banking</a><br />Anonymoushttps://www.blogger.com/profile/14001713324253418834noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-16881640649080922782013-03-02T08:27:45.680-05:002013-03-02T08:27:45.680-05:00Very nice and helpful information has been given i...Very nice and helpful information has been given in this article. I like the way you explain the things. Keep posting. Thanks.. <a href="http://capitalbuilder.in/stocktips.asp" rel="nofollow">Stock tips </a>Sock tipshttp://capitalbuilder.in/stocktips.aspnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-85827968154888992972013-02-22T05:53:12.087-05:002013-02-22T05:53:12.087-05:00Thanks for posting this informative post. I like t...Thanks for posting this informative post. I like the content because its rather easy to understand. And the topic captures my attention. Keep on posting like this and more power<br />Learn Stock Markethttp://www.sanasecurities.comnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-9151537056864479912013-02-12T14:33:16.067-05:002013-02-12T14:33:16.067-05:00Hi,
Thanks for posting. I did make a post about...Hi, <br /><br />Thanks for posting. I did make a post about inflation and the stock market. Check it out here:<br /><br />http://brooklyninvestor.blogspot.com/2012/03/on-gold-and-inflation.html<br /><br />Buffett also wrote an essay about how inflation swindles the stock investor back in the 1970s. He explained how inflation is not good for stock investors, but ended the article by saying that he was buying stocks. <br /><br />Over time, if you have a good business model, you are going to be able to earn what you deserve. If you do add value and provide a product or service people want, you will be able to earn a fair return on your time, capital etc... <br /><br />Inflation has been positive in just about every single year in the past century and stocks did very well. A Coke cost, what, $0.01 per serving? $0.05 per serving? And now it's more like $1.00. Coke investors did just fine. <br /><br />Of course, it would have taken a genius to find Coke back then to invest and hold through everything, but even if you just stuck with stocks in general you would've done fine. <br /><br />High inflation like the 1970s will depress stock prices due to the impact on earnings and higher capitalization rate caused by higher interest rates, but when it inevitably settles down, the economy will reprice and the good businesses will earn decent profits again. The trick is to be able to have confidence and hold on until you get to the other side. Many don't (and that's why there are so few Buffett-like billionaires). <br />kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-14605082024292918772013-02-12T14:20:14.886-05:002013-02-12T14:20:14.886-05:00How does inflation affect the stock market? How do...How does inflation affect the stock market? How does it affect your stock investments? Some companies compensate for inflation by raising prices. However, globally competitive companies are unable to stay competitive against foreign producers who don’t have to raise their prices to fight inflation. Also, inflation robs companies of the value of their increased prices. This means they are paying more for less, and this forces them to overstate their actual income, when in fact, the raised prices have no real value at all.<br /><br /><a href="http://www.forexmalibu.com/" rel="nofollow">Neil Salser</a>Anonymoushttps://www.blogger.com/profile/02455296677542866286noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-3396289210860899552012-12-31T06:30:32.873-05:002012-12-31T06:30:32.873-05:00Very nice and helpful information has been given i...Very nice and helpful information has been given in this article. I like the way you explain the things. Keep posting. Thanks..<a href="http://www.capitalbuilder.in/stocktips.asp" rel="nofollow">Stock Tips</a>Stock Tipshttp://www.capitalbuilder.in/stocktips.aspnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-13131078966350350182012-09-04T10:22:18.234-04:002012-09-04T10:22:18.234-04:00A nice article with a great stuff of information, ...A nice article with a great stuff of information, I really like that. This is really interesting site that gives huge of information to all readers thanks a lot.<br /><a href="http://www.sjs-group.com" rel="nofollow">Structured finance</a>SJSGrouphttps://www.blogger.com/profile/15984454646254253426noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-28122456458680954522012-08-27T09:16:27.043-04:002012-08-27T09:16:27.043-04:00Your post is really good providing good informatio...Your post is really good providing good information.. I liked it and enjoyed reading it. Keep sharing such important posts.Stock Markethttp://www.research4u.co.in/noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-79036440282338899142012-08-24T06:42:27.337-04:002012-08-24T06:42:27.337-04:00This comment has been removed by a blog administrator.Commodity Tips | Stock MarketTipshttps://www.blogger.com/profile/01359309220767389673noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-44582038251613637992012-08-12T16:23:06.592-04:002012-08-12T16:23:06.592-04:00Great post! Had the same feeling about the researc...Great post! Had the same feeling about the research boutiques and hedge fund returns - peculiar coincidence.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-84917754351955829732012-08-12T14:52:56.542-04:002012-08-12T14:52:56.542-04:00The way I think about inflation and other items is...The way I think about inflation and other items is that it affects everyone. Thinking in only relative terms and not absolute terms, inflation is something that affects everyone, and so prices will adjust. In some though, price changes may take more time than in others, and some companies may stay ahead of the inflation instead of responding to it - if you have pricing power, you can adjust pricing very quickly, whereas others may be lagged. Inflation in and of itself isn't an issue as much as unexpected inflation is specifically for insurers.<br /><br />Regarding stocks for the "really long term" - it's interesting to note the different mentality among some investors. Some want prices to go up, but when I invest in a rock solid company, I would prefer the stock price to go down and stay that way for years. Good operators will get a chance to retire shares at a very low price and it will provide more time for me to accumulate the stock. With a 20-30 year time horizon, I think this will out perform those chasing instant gratification.<br /><br />The challenge with investing, in my opinion, is the feedback loop. The markets let us think that their movements are our feedback loop, but I don't buy that - our feedback loops are really long. If you write a set of 1,000 auto loans that are set to be repaid in 2 years, then you know how you did on an absolute basis in 2 years, or whenever everyone has paid off their loans.<br /><br />In a business though, that feedback loop can be 10, 20, or even 30 years. Even if a stock price rises over 1 year and you exit with a big success, is that something to celebrate? I think we need to continue monitoring the performance of the company to see what happens, otherwise if it's going to blow up, then it's an adult version of hot potato.<br /><br />This 10+ year feedback loop also means that investors only have a certain number of opportunities in which to run their "experiments," because our lifetimes do not allow for 100's of tests to be run. If you assume that someone starts investing shortly after college, at 25, and do it till they are 75, then you're at 50 years of total time. In that period, your 10-year feedback loops mean that you'll only experience 5 iterations in sequential order. There are other ways of viewing this to argue that there are 50 iterations, however the point is still that there is a really long *real* feedback loop versus the *artificial* one of the stock market.<br /><br />(I know there are also arguments for the way the stock market operates, because there is an element of probability embedded in it, so your thought process could be right despite the stock falling, and I will grant you that this is a good argument. The challenge I see is that 1) I don't think any investor can distinguish between 76% odds of something succeeding and 78% of the same thing happening, and even then, the results can be so widely distributed that it's tough to quantify, and 2) It lends us to a shorter time frame in which we are focusing on what others are telling us rather than what we believe to be correct)Ankit Guptahttps://www.blogger.com/profile/02258415457971042051noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-62583032042212723592012-08-10T13:44:14.801-04:002012-08-10T13:44:14.801-04:00Thanks for the comment. Yeah, maybe that would ha...Thanks for the comment. Yeah, maybe that would have been better. My posts do sort of end up as stream of thought kind of thing; I wasn't sure where I was going. I don't want to change it after posting, though (except fixing typos and minor changes).kkhttps://www.blogger.com/profile/06299974418283948333noreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-63497590208231704202012-08-10T13:42:48.534-04:002012-08-10T13:42:48.534-04:00great post tho!great post tho!sjchttp://google.comnoreply@blogger.comtag:blogger.com,1999:blog-5389144729834496735.post-73910978995486103002012-08-10T13:40:49.894-04:002012-08-10T13:40:49.894-04:00i really think you should start this post with the...i really think you should start this post with the Hard Assets or Stocks? <br />and finish it with the Book part. get us str8 to the good stuff.sjchttp://www.google.comnoreply@blogger.com