What I've learned since moving to D.C. (some of which should be obvious): 0158

7851.  Goats can eat poison ivy and poison oak. . . . Who knew?

7852.  A superior cost structure is often fundamental to a business’ sustainable advantage;

7853.  For an airline, first-class pilots are essential so costs are very people-intensive;

7854.  In the carpet business, only 15% of costs relate to employees.  The big cost is the raw materials, the fibers;

7855.  In the insurance business, the big cost is future claims, which involves a lot of estimating because claims might be paid 5, 10 or 20 years later;

7856.  In retail, the big cost is rent with labor being a significant secondary cost;

7857.  The big cost can vary enormously by the type of business you’re in;

7858.  The key to investing is to understand a company’s costs and why it’s got a sustainable edge against its competitors;

7859.  The big problem with airlines is not so much aggregate revenue, but whether your average costs are out of line with your competitors.  Since the airline travel is pretty much a commodity business, costs are the key factors.  The biggest cost is labor;

7860.  The figure to look for with airlines is cost per available seat mile and the cost per occupied seat mile;

7861.  In airlines, as with many other industries in a capitalistic society, business will eventually gravitate to the low-cost player;

7862.  Warren Buffett suggested that for those who believe U.S. businesses will do well over time, dollar-cost-averaging into a broad-based index is a reasonable approach;

7863.  Charlie Munger noted that many corporations have large mergers and acquisitions departments spending huge amounts of time to do huge amounts of due diligence.  Yet at least two-thirds of acquisitions are duds;

7864.  It is helpful to list the qualities you would want in a friend and then seek to instill those qualities in yourself;

7865.  It’s a matter of choice (and) not DNA.  Anyone can develop good character and quality lifetime habits;

7866.  Warren Buffett recommended realism in defining one’s circle of competence and discipline to stay within the circle.  It helps to insulate yourself from popular opinions.  You’re better off sitting and thinking;

7867.  Read a lot of annual reports.  Learn accounting by reading good business articles especially those on accounting scandals.  Try to know how the numbers are put together.  If you cannot understand it, it is probably because management doesn’t want you to understand it.  Management always obfuscates the facts for a reason;

7868.  Warren Buffett warned investors if management refuses to expense options or has fanciful pension assumptions they will likely take the low road on other matters as well;

7869.  Charlie Munger advocates developing a temperament of owning securities without fretting.  If you focus on the price, you are really saying that you believe the market knows more than you do.  If you think of the value of the business instead of the price, you will sleep better;

7870.  Investing should be more like pari-mutuel betting, where you need only be right a few times as long as you don’t take a big loss;

7871.  Don’t poke Elizabeth in the cheek when she’s sleeping;

7872.  Anything I’ve ever done that ultimately was worthwhile initially scared me to death;

7873.  Sports are the main way in which people in the modern world actually achieve altered states of consciousness;

7874.  It’s a professional who shows up and does the work.  It’s an amateur who waits to be inspired or waits until they feel like it;

7875.  Life hack: At Starbucks, order a café misto for 50 stars instead of a handcrafted drink.  Make it a venti and add as many add-ons (including espresso shots) as you like.  Once you checkout, all of the additional charges are removed and it’ll only be 50 stars (for brewed hot coffee v. 150 stars for a handcrafted drink);

7876.  Elizabeth played a lot of Pac-Man growing up;

7877.  For inflation strategies, Warren Buffett suggested, as a first line of defense, one increase his/her earning power.  If you’re the best surgeon or the best plumber in town, your wages will more likely be indexed to inflation;

7878.  As a second strategy, (Warren) Buffet recommended owning businesses that can price through inflation and have low capital expenditures to maintain the business;

7879.  The worst sorts of businesses to own in an inflationary environment are ones that require a lot of capital to stay in the game and provide no real return;

7880.  While gold may be a refuge from a declining currency, (Warren) Buffett observed that is true for any physical asset;

7881.  Charlie Munger noted that Berkshire Hathaway does no asset allocation.  They merely go where the opportunities are regardless of categories and that is totally out of step with modern investment theory;

7882.  Regarding modern asset allocation, (Charlie) Munger noted, “If a thing is not worth doing at all, it’s not worth doing well;”

7883.  Apparently, state inspections are free if you bought your car at Brown’s Alexandria Mazda;

7884.  It is hard to fail, but it is worse to never have tried to succeed;

7885.  On Thursdays, Dave & Buster’s (DaveAndBusters.com) has unlimited wings and video game play for $19.99 from open to close;

7886.  (Out of all of the concerts I’ve been to) who has the oldest fans (by far)?  The answer is: “The Rolling Stones;”

7887.  I can say (that) I’ve seen “The Rolling Stones” live (again);

7888.  Warren Buffett has asserted that to a large extent gambling is a tax on ignorance.  You allow gambling and it ends up taxing many that are least able to pay while relieving taxes on those who don’t gamble;

7889.  (Warren) Buffett favors great businesses, which he defines as those having a high return on capital for a long period of time, where he thinks management will treat shareholders right;

7890.  Ideally, (Warren) Buffett buys businesses for $.40 on the dollar, but he’ll pay closer to a dollar for a really great business;

7891.  (Warren) Buffett claims that his best ideas haven’t done better than others’ best ideas, but he’s lost less on his worst ideas;

7892.  In modern portfolio theory, beta is a measure of volatility, which, in turn, is seen as a measure of risk.  The higher the beta, the higher the risk.  (Warren) Buffett begs to differ asserting volatility does not measure risk.  For example, a couple decades ago, farmland in Nebraska went from $2,000.00 to $600.00 per acre.  The theory would say the “beta” of farms went way up, so you would be taking far more risk buying it at $600.00 than at $2,000.00;

7893.  (Warren) Buffett believes that real risk comes from the nature of certain kinds of businesses by the simple economics of the business and from not knowing what you’re doing.  If you understand the economics and you know the people then you’re not taking much risk;

7894.  The “newspaper” standard: Behave as if your actions will be on the front page of the local newspaper;

7895.  Berkshire Hathaway has no budgets or earnings goals;

7896.  It takes about 2 seconds for a party popper to hit the ground when it’s (been) thrown from the 17^th floor (of a building);

7897.  Electric scooters can go pretty fast;

7898.  Truths about romantic relationships: 1.  Monogamy does not equal a healthy relationship; 2.  Another person cannot “complete” you; 3.  Romantic relationships are unconscious reenactments of what we witnessed in childhood; 4.  A healthy relationship can feel boring especially if you have a history of chaos and instability; 5.  People don’t change for other people; 6.  Love is rooted in accountability, honesty and vulnerability; 7.  Without doing re-parenting work, you’ll always have “communication problems;” and 8.  We pick partners with traits similar to a parent whose love we wanted the most and did not receive;

7899.  Refuse to allow yourself to have low expectations about what you’re capable of creating.  As Michelangelo suggested, the greater danger is not that your hopes are too high and you fail to reach them; it’s that they’re too low and you do;

7900.  A mind that’s open to everything means being peaceful, radiating love, practicing forgiveness, being generous, respecting all life and, most important, visualizing yourself as capable of doing anything that you can conceive of in your mind and heart;