I love monopolistic profits and free markets
Reading the blog posts, I noticed one interesting fact. Everybody here is presenting himself as a free-merketer. Whatever disagreements there may exist are really about the fine gradations of the free market orthodoxy. Everybody agrees that we need maximum economic freedom and minimum interference from the bureucrats. But when it comes to picking stocks, the tone changes immediately. Nobody wants to have anything to do with companies that operate on that very same free market they praise so ardently (think GM, F, AMR, DAL, XMSR, SIRI). That's a bad business becuause there is too much competition. Everybody wants to own a company insulated from competition, ideally due to the courtesy of bureacrats whose regulations keep competitors away. Something like ISRG, PFE, MRK, OMAB, PAC, MWA, BBBB, MSFT. Maybe SIRI if regulators rid them of the competition. Maybe PHM is enough competing builders go belly up. HAL would be perfect if Cheney could stay in Washington, DC after November. As we know form Buffett, most shareholder profits are made off of companies that have some kind of "moat". Now, when it comes to legitimizing these profits, these same shareholders once again recall their mantra that this is a free country and that profits should not be regulated by the bureucracy. I'm wondering how many proponents of free markets would still be left in the blogosphere if only they realized that a free market means profit margins that hardly ever rise above 5% and that often go negative every other year.