Tag Archives: Warren Buffett

Taxes – The Price We Pay For Civilization

“Taxes are the price we pay for civilization.” – Oliver Wendell Holmes.

Neil Armstrong on the surface of the moon

Your Tax Dollars At Work, Courtesy NASA

Tweet Taxes fund Medicare and Medicaid so the poor and the elderly can see a physician and get treatment when they are sick. Taxes fund education for our children and our neighbors children so they can grow up to be doctors, lawyers, engineers, architects, accountants, teachers, plumbers, electricians, carpenters, builders, actors, etc., so we can buy things that work properly, travel safely, enjoy life, so we can, in a word, thrive. Taxes fund police, fire-fighting, defense, judicial and other services so we can be secure in our homes and our persons, so the innocent do not go to prison, so the guilty pay their debts to society, and so we, when we do foolish things, can compensate those we accidentally harm. Continue reading →

Sustainable Investing

To paraphrase Warren Buffett and Charlie Munger, “Buying a good company at a good price is a good idea. Buying a great company at a bargain price is better.” But to note this in light of L’ Affaire Sokol – Lubrizol, “Buying a great company at a good price when a stick-picker on my staff just bought it for his account is a really stupid idea. And making excuses is even stupider.” (See this article by Joe Nocera at the NYTimes.)

Buffett claims to practice “Value Investing” as defined by Ben Graham, Phil Fisher, Ken Fisher, Joel Greenblatt, Bruce Greenwald, and others. I see “Sustainable investing” as a subset of “Value Investing.” Value Investing seeks to find companies that are currently undervalued by “Mr. and Ms. Market” but that are really effective at delivering Shareholder value. Sustainable Investing would seek to find companies that are currently undervalued but that are really good at delivering Stakeholder value. Continue reading →

Everything you need to know about Global Warming in 5 Minutes

Unlike Warren Buffett, Jeremy Grantham, chairman of Grantham Mayo van Otterloo, GMO.com, is not a “celebrity investor.” And also unlike Buffett, Grantham is an environmentalist. Jeremy and his wife, Hannelore, established the Grantham Foundation for the protection of the environment, and The Grantham Research on Climate Change and the Environment at the London School of Economics. Like Buffett, Mr. Grantham talks to investors who hire him, and via his investments, charities, and other work, he talks to the world. Mr. Grantham recently wrote “Everything you want to know about Global Warming in 5 minutes“,

Two ideas stand out:

Climate warming involves hard science. The two most prestigious bastions of hard science are the National Academy in the U.S. and the Royal Society in the U.K., to which Isaac Newton and the rest of that huge 18th century cohort of brilliant scientists belonged. The presidents of both societies wrote a note recently, emphasizing the seriousness of the climate problem and that it was man-made. … Both societies have also made full reports on behalf of their membership stating the same. Do we believe the whole elite of science is in a conspiracy? At some point in the development of a scientific truth, contrarians risk becoming flat earthers.

Conspiracy theorists claim to believe that global warming is a carefully constructed hoax driven by scientists desperate for … what? Being needled by nonscientific newspaper reports, by blogs, and by right-wing politicians and think tanks?

The full text is below:

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Wall Street and Climate Change

At Deutsch Bank, one of the world’s largest banks, there are some very bright people who understand that climate change is problem. An Internet search on “Deutsche Bank Climate Change” brings up links to Deutsche Bank Climate Change Advisors, which features a carbon counter, showing the tons of Carbon Dioxide in the atmosphere, 3.6659 trillion metric tons. Before the start of the “Industrial Revolution” there were approximately 2.5 trillion metric tons. The question for the scientists is “What are the effects of shifting all this carbon from under the ground into the atmosphere?” For the citizens and policy makers, “Is this good or bad, and if bad, what should we do?”

What should Obama do? What is Celebrity Investor and Adviser to Presidents Warren Buffett doing?