· On Wechsler and Coombs compensation (new investing dudes): Additional data points on Wechsler and Coombs compensation: They take a $1 million salary home, get paid 10% of their outperformance against the S&P (e.g.--if they outperform by 10%, they get 1% of that outperformance), and get a 25% split of the other guy's take. These stats are figured on a rolling 3 year basis. [more]
· WEB on GOOG and AAPL: Both look very tough to dislodge, excellent companies, and I wouldn’t be at all surprised to see them earning a lot more money 10 years from now. But I couldn’t get to the level of conviction that I would ever buy them. But we wouldn’t have predicted what would happen with AAPL 10 years ago, and we can’t predict the future. And what do we know about computers? Nothing. [more]
Buffett took on the gold issue, again. His quote: "It's very hard for an unproductive investment to be a productive investment over a long period of time."
I agree Something that has little industrial use, does not produce anything, and does not serve "something" cannot be judged as fundamentally valued. That sounds about right. It might be worth more, but how should I know?
Just mused that he thinks BNSF's competitive position has improved over the past years. Couldn't agree more. Think for a second on railroads: They're truly one of the most unbelievable asset footprints out there. The regulatory, practical, and capital barriers associated with reconstructing nationwide rail network are almost inconceivably huge. And with oil prices higher than $100, I'm reasonably certain they're going to earn huge returns for some time to come. [more]
"It sounds to me that if that 84 year old man is making a decision on his investment based upon his politics, he belongs on Fox." [more]