Gongol.com Archives: August 2016
The stalwart publication of classical liberalism argues that Buffett's investing style -- which depends heavily upon businesses that have some defense against competition, whether through natural monopoly or some other meaningful "moat" -- isn't especially good for making good things happen inside a dynamic capitalist economy. And, in a sense, The Economist is right: Buffett's style is about safety, not innovation. But on the other hand, Buffett's style is really suited more to the idea of cautious investment as preservation of capital than to economic dynamism, and if people choose to invest with Buffett as an alternative to other "safe" investments like government bonds, then it could be argued that even if the innovations emerging from Berkshire Hathaway are minimal, it's still better for the money to go to work within the private sector than to prop up additional government spending. A great deal of the good that comes from capitalism, though, does come from the willingness of entrepreneurs and daring proprietors to take risks with no certainty of returns.
And the losses hitting health-insurance companies may permanently undermine Obamacare. Probably the biggest single shortcoming of Obamacare is that it did nothing to reduce the actual costs of health care -- it only sought to realign who paid for them. That didn't deal with the root problem, and in introducing more government oversight and interference may very well have made the situation worse.
It may be correlation without causality, of course, but it may also be rooted in the same kind of effect that some people experience from having pets: Daily reading may serve to give the reader a valuable period of physical rest and mental de-stressing that end up delivering physiological benefits.
Pushed into a precarious financial state by an expensive lawsuit, Gawker is heading into the arms of a media company with its eyes squarely on one of the most important growth demographics in the United States. Very interesting.
Just one more indignity we didn't need right now