I’ll continue the discussion on compounders and the importance of ROIC next week. I have a few thoughts I’d like to discuss on that subject in the next few weeks.
In the meantime, I thought I’d share just a few links to some good reading material. Memorial Day here in the US always marks the beginning of summer for me, and I always have a long list of reading material ready for summer. This is not a comprehensive summer reading list by any stretch, but a few of these might be good weekend reading for you:
- He Put the Kick Back Into Coke: An old Fortune article on Robert Goizuieta, who was the CEO at Coke in the 80’s. The piece demonstrates the importance of a great manager, even when it’s a business that could be “run like an idiot” as Peter Lynch would say. Thanks to Odd Lot Invest for the link.
- Walmart Annual Reports. I have been enjoying reading through these old reports, which Walmart generously makes available. Reading through these old reports are like watching old highlight reels from the Pittsburgh Steelers from the 70’s, the NY Islanders from the 80’s, or the Chicago Bulls of the 90’s–a great collection of management (coaching), business model (gameplan), and brilliant execution that leads to incredible long term dominance.
- Q&A Session with Alice Shroeder. I am always interested to read/listen to interviews with Alice Schroeder because 1) one of the few people who have gotten very close to Warren Buffett in recent years and also have written about it, and 2) I think she is a very talented writer. She also is great at diving into details about old Buffett investments that make for interesting case studies. Here is another post I did some time back that contains an interview she gave: How Warren Buffett Thinks About Risk
- Short Video Clips from Sears Annual Meeting. I’m always interested to hear what Eddie Lampert has to say, who I think is one of the best investors of his generation. He seems to be fighting an uphill battle, but one day SHLD will be a great case study regardless of the outcome of Lampert’s efforts. These are interesting clips from the annual meeting, where Lampert seems to be as resolved as ever to continue his “transformation” of Sears Holdings.
- The Pyschology of Human Misjudgment: A great lecture from Charlie Munger.
Have a great weekend!