It is natural to reflect on the events of the current year as it draws to a close. As we wrap up activities at The Rational Walk for 2010, we present a brief update for readers regarding the status of the website, future plans, and a selection of popular articles that have appeared over the past year.
Kindle and Calibre Presents a Powerful Solution for Newshounds
We recently published an in-depth article covering how investors can use Amazon’s Kindle 3 for reading SEC filings. The approach outlined in the article can be a viable solution for investors who would like to save paper, but it only scratched the surface in terms of the Kindle’s utility as a newsreader. While reading newspapers on the Kindle is not yet equivalent to traditional newsprint, the timeliness of delivery and the ability to subscribe to distant newspapers can be quite compelling. Unfortunately, the cost of subscriptions through Amazon.com can meet or exceed the price of print versions which seems like a poor value proposition. In this article, we will discuss a way to legally gain access to literally hundreds of newspapers and magazines at no cost. Read this article for more details.
Retailers ‘Stuck in the Middle’ May Soon Face Extinction
Much of what we do as investors involves studying businesses and critically evaluating the returns that are likely based on management’s competitive strategy. The elusive search for true “moats” is often frustrated by quick technological change which can make yesterday’s incumbent firm today’s dinosaur. Investors who pay a rich valuation for a business with a moat must be confident that the advantages leading to high returns today are not destroyed by new types of competition in the near term. Smart phones may soon threaten to drive retailers without a coherent competitive strategy to extinction.
Companies Switch to Shale Oil as Natural Gas Prices Remain Depressed
The shale gas boom in the United States has been something of a mixed blessing for independent oil and gas companies. While new technology has opened up vast new areas of exploration and production, natural gas prices have been in a serious slump since peaking in mid 2008 which has created challenges for companies seeking to justify the cost of shale production. At recent prices, shale plays may be delivering only marginal profitability at best given the high cost of production. However, while natural gas prices remain stuck in a trading range near $4/mcf, crude oil prices are approaching $90/barrel, a level not seen in over two years. Companies may be starting to respond to these price signals. Read the article for more details.
Holiday Book Recommendations for 2010
The holiday season is a good time to revisit books that have been read during the past year and plan reading lists for the new year. The eleven selections listed in this article are mostly recent books focusing on finance, economics, and business topics but not all were published during 2010. The reality is that many worthy books are written each year that cannot be read due to time constraints, and this has been particularly true as the avalanche of financial crisis books came to market over the past two years. However, in other cases, we simply overlook “must read” books for years or decades. Hopefully this list will provide at least a few ideas for your 2011 reading list.