Weekend Reading

22 April 2016 | by Paul Perrino, CFA

A summary of this week’s best articles. Follow us on Twitter (@intrinsicinv) for similar ongoing posts and shares.

Why crude oil prices keep taking us by surprise (Brad Plumer, Vox)

Referencing a recent paper in the Journal of Economic Perspectives, Brad highlights four reasons oil prices continue to surprise investors. Similar to global macro forecasting, the inability to accurately forecast the impact of technology and political crises are two prominent causes.

Bruce Greenwald: From Graham to Buffett and on to Modern Value Investing (HurricaneCapital)

HurricaneCapital shares a video from Columbia Business School’s centennial celebration. They highlight a portion of the video that focuses on Bruce Greenwald’s thoughts on Warren Buffet’s approach and the development of modern value investing.

16 Favorite annual letters from an investor who’s read more than 1,000 (Jason Zweig)

Building upon an article Jason wrote earlier this month (It’s time for investors to re-learn the lost art of reading), he lists out the first half (sorted alphabetically) of noteworthy annual letters to shareholders. One shareholder letter that’s not included on the list, but we feel is worth reading, is Jeff Bezos’ letter in Amazon’s 2004 Annual Report. We referenced it in our recent posting about ROIC, which can be found here.

Billing by Millionths of Pennies, Cloud Computing’s Giants Take In Billions (Quentin Hardy, NYT)

Amazon Web Services has become a toll taker. Starting late last year, Amazon started charging customers a very small amount (millionths of a penny) for each computer cycle (or line of code) they run on Amazon’s servers. Other companies, such as Microsoft, are starting to follow suit.

 

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