Circle Of Competence Issue #6
Department of History
- Brief history of the Fed and its creation after the 1907 financial panic. Another great introduction here on the financial panic of 1907.
Department of Technology
- Excellent introduction into the qualities of different types of money including commodities (gold etc.), cash, commercial deposits, and cryptos etc. as well as how central banks may use them as another form of currency.
- One of my favorite investors, Mohnish Pabrai, has written about how spinoffs can outperform markets post-spin and has issued his algorithm's predicted spinoff outperformers for 2018. In fact, his spinoff portfolio returned 30.6% in 2017.
- Interesting article not only on Elliott's stake but also on the South Korean family owned conglomerates called chaebols.
Department of Letters
- Excellent set of letters from Prem Watsa at Fairfax Holdings. I am on a mission to finish all of his shareholder letters to learn more about how he replicated Buffett's approach at Berkshire Hathaway - i.e. using insurance float as a (near) cost-less means to boost return on shareholder equity as well as acquire more operating companies. Would highly recommend these letters!