Reading Counts

I tend to share articles of interest with colleagues. I like to share. Maybe I’m still affected by the dogmatic Reading Counts program from childhood.

I read a tweet recently, that was quickly deleted, indicating the tweep both loved and hated to receive recommended articles. In spite of the tweeps personal doubt evidenced by the prompt tweet delete, I took the view to heart.

Rather than email articles to friends and colleagues I’m going to test posting articles of note here. I will update as often as I can with new reading I find notable.

As for my tweeps, I will continue to share liberally.

I hope you enjoy.

May 14, 2016

We have friends in Argentina and I am excited to watch the country develop after Kirchnerism. We share a love of the land and share a respect for the vitality of housing in dynamic communities. The article shared above is a sober and well considered look at opportunities and challenges ahead for Argentina.

Secular Stagnation?

Article is interesting discussion of secular (i.e. long lasting vs. cyclical (short-term)). Here’s my key take away that’s relevant to our business:

Summers’s deeper argument is that world growth is stuck in a rut because there’s a chronic shortage of demand for goods and services and a concomitant excess of desired savings. The U.S. and other industrialized nations tend to save more as their populations age, he says. Meanwhile, growing inequality puts a bigger share of the world’s income in the pockets of rich people; they can’t spend everything they make, so they save it. The investment that would ordinarily soak up those savings is falling short. That’s partly because the new economy is asset-lite: Companies such as Uber and Airbnb prosper by exploiting assets (cars and houses) that already exist. Software, which is pure information and doesn’t require the construction of factories, accounts for a bigger share of the economy. Slow growth in output and productivity reduces investment as executives lose faith in the payoff from capital spending.

The world needs asset intensive businesses to create investment opportunities in service of global savers/investors. Capital intensive investment benefits 3 natural stakeholders in the economy: asset users, producers and investors.

April 27, 2016

Long tweetstorm by @gasnerpants that does a nice job explaining banks and their role in the traditional economy and how modern trends may alter banks beyond recognition.

The article referenced is located here:

Both are worth a read, but the tweetstorm is tops.

April 24, 2016

Goldman moves into retail savings offering savings rates to small balance depositors 3x-5x better than the national average. Interesting times for banking…

Morgan Stanley makes a call for slow adoption citing the complexity of broad industry cooperation.

With this in mind, the researchers argue that there is no chance of widespread adoption of distributed ledger technologies for at least five to 10 years and that they are not going to be material to earnings in 2017/18.

April 23, 2016

Technology is profoundly impacting the flow of capital into real estate. We have seen progress in recent years, but I expect much more is to come. The interests of real estate’s organic stakeholders have long been supplanted by the external interests of banks, insurers and brokers with the aid of state and national regulation — technology holds the promise tipping the scale in the favor of direct real estate consumers, producers and investors.

A New Book to Read

Starting to learn of the violence in El Salvador and other Central American countries. It’s complicated, but the United States is a key actor in the past, present and future of all Central America.

April 22, 2016

But I have hope that the justices will decide in our favor. If that happens, I think that the next day I won’t sleep at all — thinking of everything I will do, thinking of how everything will change.

April 21, 2016

Contribution from Bill Gurley that lays it on the table.

April 20, 2016

My favorite language to hear sung and spoken is Spanish. My wife is from Laredo. I’m beginning to learn about the plight of central Americans and why so many flee their violent homes for the United States and Canada.

April 16, 2016

I’ve not read any of the cited books, but I loved the way they talk. I generally covet the skills of talented writers. Particularly liked this quote from Álvaro Enrigue, “It’s also a writer’s duty to produce a discourse that renews language, that faces hate.”

W-2 salaries don’t have many advantages as evidenced by this article on Tesla executive compensation.

Vertical integration is in vogue again. The control and cost-efficiency of self-performance is alluring.

April 3, 2016

Bitcoin holds fascinating potential.