8 Fascinating Reads

Good reads, short quotes.

Aug 22, 2014 at 11:29AM

Here are 8 fascinating things I read this week. 


Angelo Mozilo, the former CEO of Countrywide Financial, one of the worst culprits in the subprime mortgage bubble, made a prescient call in 1991:



The S&P 500 went up 30% last year. Only 7% of Americans know this fact:

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Unforeseen problems

Google is building an underwater fiber cable system that is literally being eaten by sharks:


Stocks at all-time highs is pretty common, writes Ben Carlson: 



I never tire of these charts showing how poorly the average investor performs:

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Warren Buffett is building up cash while the average investor is cutting it:

Cash at Berkshire Hathaway stood at just over US $55 billion at the end of June, a record high and 21/2 times the level Buffett had said in the past he liked to keep on tap to meet extraordinary claims at his insurance businesses. It was also up more than 50 percent year on year.

Buffett's green pile was in sharp contrast to individual investors, who had cut cash in portfolios to 15.8 per cent, a 14-year low, the July asset allocation survey from the American Association of Individual Investors showed.


The world is getting older very quickly:

By 2020, 13 countries will be "super-aged" -- with more than 20% of the population over 65 -- according to a report by Moody's Investor Service.

That number will rise to 34 nations by 2030. Only three qualify now: Germany, Italy and Japan.


Cullen Roche gives a good take on stock valuations:

The point is, if valuations and market perceptions are as dynamic as I believe then the history of something like CAPE really doesn't tell us much at all.  After all, "value" is really all in the eye of the beholder.  If investors are willing to pay more for stocks today than they were in 1950 then maybe a CAPE of 15 has no bearing on what a CAPE of 25 means.  That is, stocks could simply be perceived differently than they were in the 1950s.  Perceptions change.  And there's no reason why stocks can't be perceived to be inexpensive at a CAPE of 25 just because they once sold at a CAPE of 15.  In other words, what if a CAPE of 35 is the new "expensive"?   Now, I don't know if that's true, but in the process of managing one's risk I think you have to consider that possibility.

Have a good weekend. 

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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