Reading across disciplines is one of the best ways to improve our investment acumen. Here is a summary of some of the best articles I read this week.
I especially try to not post Corona related articles as that is all one gets to read in all traditional media.
The great investors who no
one knows about
brothers from New Zealand have perhaps THE best long-term track record in the
investing world. Starting in 1986, the two turned $10 million of family money
into over $5 billion just 20-years later. That’s an astounding 36% CAGR. The
two brothers have gone to great lengths over the years to maintain a low
profile and keep their faces out of the news. They were amongst the first
investors to plunge into emerging markets like Russia, Brazil, and the Czech
Republic. They are the Chandler brothers: Richard and Christopher. They ran the
Sovereign Global Fund for 20-years (the two have since split off to manage
their own money with Legatum and Clermont Capital).
The unknown Pharma
blockbuster drugs is the pinnacle of pharmaceutical industry success, then the
next best thing is getting rich by earning pennies from every pill sold. For 24
years, that is exactly what a little known Wall Street investor named Pablo
Legorreta has been doing. Few have heard of him, but millions have benefited
from the top selling drugs his company Royalty Pharma draws income from. Names
like Humira for sufferers of Crohn’s disease, Lyrica, the most successful
anti-epileptic remedy and blood cancer treatment Imbruvica. The giant companies
behind these drugs, names like Pfizer, Johnson & Johnson and AbbVie, do all
the heavy lifting— producing and marketing the drugs while Legorreta sits back
and collects his mailbox money.
How to reduce imports from
structural question is whether we can permanently reduce the share of Chinese
imports. This must be seen in context. India typically incurs a current account
deficit, which means that we typically import more goods and services then we
export. There are two reasons for this. We export when the price and quality of
what we sell is attractive to foreigners. We import because the same is
attractive to us. This, in essence, is the theory of comparative advantage and
a current account deficit simply means that our overall comparative advantage
is lower than that of our trading partners. However, as an economy evolves,
there is another reason why this may happen, which is that our pattern of
consumption becomes more import-intensive.
A gift of love from father
to daughter made her a multimillionaire
When Hiroe Tanaka’s
father died, he left behind something that would change her life: a recipe for
fried meat on a stick. It was an act of love. His daughter adored the Japanese
street food known as kushikatsu, and he’d spent endless hours working out how
to make it just right.
memo, which detailed how to cook the seemingly simple dish, helped save a
restaurant business from bankruptcy in 2008, elevated Tanaka from part-time
employee to vice president of a company named after her, and made her a
multimillionaire. The university dropout who once worked as an office lady now
sets strategy for the $82 million Kushikatsu Tanaka Co.
A therapy for permanently
reducing LDL & Triglycerides
A novel gene-editing
experiment seems to have permanently reduced LDL and triglyceride levels in
monkeys. In the first gene-editing experiment of its kind, scientists have
disabled two genes in monkeys that raise the risk for heart disease. Humans
carry the genes as well, and the experiment has raised hopes that a leading
killer may one day be tamed. But it will be years before human trials can
begin, and gene-editing technology so far has a mixed tracked record. It is
much too early to know whether the strategy will be safe and effective in
humans; even the monkeys must be monitored for side effects or other treatment
failures for some time to come.