Overnight the US was down with Trump saying he could be agreeing to some trade deals but said he would not be meeting with China’s President Xi Jinping.
Of course, the major news over the weekend was Warren Buffett handing over the reigns to Greg Abel at the Berkshire Hathaway (NYSE: BRK.A) (NYSE:BRK.B) AGM. It was done in true Buffett style downplaying it, almost burying it in the Q&A.
- S&P 500 = -0.60%
- Nasdaq = -0.70%
- Aussie dollar up 0.5% to 64.69US cents
- Iron positive 0.9% to $96.55 US a tonne
Berkshire and risk
There are going to be many many articles written about Warren Buffett, his legacy and his fantastic catalogue of quotes. Not to miss out I thought I’d share one that has been on my mind recently.
“Rule number one: never lose money. Rule number two: never forget rule number one”.
Of course, Buffett isn’t saying to never lose a cent in the stock market, that’s impossible but it is to understand risk, invest in companies with strong balance sheets and invest in businesses that you understand.
If you don’t have a framework for assessing risk for companies here’s a decent starting point. This is the 25 step risk checklist (first episode of a three part series) from the Motley Fool co-founder, David Gardiner.
David is a great investor and fantastic at breaking down the complicated. This risk metric is something any one can do. The information you need for each step is readily available and you don’t have to wade through technical jargon.
What I find working through this is it’s a launching point for understanding a business better and you’ll find yourself naturally digging deeper into areas of risk you otherwise would not have thought of.
I also found this blog that breaks each section down into a daily challenge to make it even more manageable.
CAR Group CEO interview
Today I will be interviewing Cam McIntyre, the CEO of CAR Group Limited (ASX:CAR). CAR Group has grown from a humble classifieds business founded in a Melbourne suburban garage, to a $13 billion giant operating around the world.
Cam moved over from Telstra’s Sensis business (remember the White Pages?) back in 2007. I heard him mention on a podcast that the decision came after reflecting on advice from a Harvard lecture he attended. When asked for life advice, the lecturer simple said, “Do something cool.” It’s fair to say – this was cool.
In the interview I’ll dive deep into the culture of the business, its international expansion, and do a bit of crystal ball gazing into the world of autonomous vehicles.
I’m not sure if Cam will think this afternoon’s podcast counts as something cool but I definitely will.
If you want to get in touch with me and talk about your nest egg of optionality, relive gigs at music venues that no longer exist or anything else please use the chat in the bottom right, jump across to Rask Invest or find me in the Community.
