More warning signs are rising, companies margins are at their peeks: „A slowdown in profit growth would hardly be surprising, given that profits are at their highest as a proportion of American GDP since the second world war. But that points to another oddity. On the best long-term measure, the cyclically-adjusted price-earnings ratio (which averages profits over 10 years), American equities trade on a multiple of 25.4, according to Professor Robert Shiller of Yale University, well above the historic average.“ Read the full article of the Economist here.
Probably the biggest money scandal in Germany in the year of 2014: The nearby bankruptcy of Prokon, where over 75.000 Germans have invested a part of their money. Another example of the famous economic quote: There is no free Lunch! English short version.
Very good blog and a very good article over the moat of financial service companies on Punch Card Investing, which perfectly fits in our current research process.
And for the first time, a video Link to an interview with the World’s Best Investment Advices from valueinvestors like Warren Buffett, Peter Lynch, John Templeton, Seth Klarman, Charlie Munger, Walter Schloss, Bill Ackman, Bruce Greenwald, …
And one quote to think about for the week: “When he was dry, he believed it was alcohol he needed, but when he had a few drinks in him, he knew it was something else, possibly a woman; and when he had it all — cash, booze, and a wife — he couldn’t be distracted from the great emptiness that was always falling through him and never hit the ground.”
― Denis Johnson