If there were just two questions to ask about a CEO, ask these: Does he run the business well? Is she good in utilizing shareholders’ capital? The first question requires no explanation—this is obviously any CEO’s number one task. The second question is a bit more complex. We … [Read more...] about Grading CEOs as capital allocators
PublicCompanies
My investments with founder CEOs
The median tenure of public company CEOs is about five years [1]. They come and go. Many of them are paid handsomely to run a company—in either cash or stocks that vest in 3 to 4 years. They’d own some shares while they work for the company and then cash out as they leave. They … [Read more...] about My investments with founder CEOs
CEOs who take pay cuts
Most CEOs make token statements about taking care of shareholders. Some mean it, others don’t. We investors don’t have a good way to judge them. We are not privy to discussions in boardrooms or corner offices. We can’t read their minds either. We don’t get to observe many … [Read more...] about CEOs who take pay cuts
Are moats really lame?
Elon Musk, Tesla’s CEO, said last month that economic moats are lame: “If your only defense against invading armies is a moat, you will not last long. What matters is the pace of innovation. That is the fundamental determinant of competitiveness.” A few days later, I was in … [Read more...] about Are moats really lame?
Rise above dividends!
Some investors are fascinated with dividend paying stocks. They invest in them exclusively. Often times, they are looking to generate income. Some investors also believe that dividend paying stocks are safer to invest in. There are investment services and portfolio managers who … [Read more...] about Rise above dividends!
Apple, Starbucks, Facebook, Tesla
These are all well-known companies. They are also very successful stocks since their respective IPOs. And they all have been rising with the market for last few years. Then what am I doing still buying them today? I own all four companies for many years. You can see my portfolio … [Read more...] about Apple, Starbucks, Facebook, Tesla
Quarterly portfolio update – March 2018
I don’t pay much attention to quarterly stock market changes. I don’t spend time trying to read tea leaves either. However, when the market goes down 10% or more from its peak, it spurs me into action. Why? As I detailed in this blog entry, I have a cash-as-dry-powder strategy. … [Read more...] about Quarterly portfolio update – March 2018
My lucky break with Roth IRA
This was the year 2000 -- at the height of the Internet craze. I had two years of cash contributions ($2K max was allowed at the time) piled up in my Roth IRA. So, in March 2000, I bought $4K worth of Amazon shares (at about $70 per share) in my account. I can’t be sure why I … [Read more...] about My lucky break with Roth IRA
My quest for commercial real-estate
My portfolio has some real-estate (RE) assets but not much. The only commercial real-estate that I have come to own (indirectly) is via public REITs (publicly traded real-estate investment trusts). I have been looking into adding a dose of commercial real-estate in my portfolio. … [Read more...] about My quest for commercial real-estate
A lesson from Buffett
Warren Buffett’s shareholder letter came out last weekend. It’s an annual ritual and it makes for great weekend reading. I am a long-time shareholder and I appreciate how he comments on the general state of investing – besides his own company, Berkshire Hathaway’s affairs. As … [Read more...] about A lesson from Buffett