Charlie Munger reminds us that inversion helps us to solve problems we may not be able to solve in other ways. As an example, he says if you want to help India it's helpful to first ask "what's doing the worst damage in India....and how do I avoid it?" Said in a personal way: What … Continue reading The Power of Inversion, or What to Avoid.
The best companies lean towards the subtle and simple with their messaging. Nike says to "Just Do It", not that they're shoes will help you on your "journeys" or that they'll lower your cholesterol. Apple had the "think different" campaign but now the iPhone X welcomes you to: "Say hello to the future." Google moved … Continue reading Journey and Experience Inflation
5+ years ago at a Berkshire Hathaway shareholders' meeting, a doctor from California asked Buffett and Munger what they'd do to change healthcare and they said the didn't have any answers. As Buffett says now, "The ballooning costs of healthcare act as a hungry tapeworm on the American economy." I would add that it's a … Continue reading Tapeworm
To understand healthcare, pay attention to the stock market and companies earnings filings. This way you can capture a glimpse of how companies make money, how much they pay to acquire, how their incentives are aligned, how healthcare exchanges work and what value they deliver, how interest rates may affect their revenue (see HSAs), what … Continue reading 5.5%