Weekend Reading

2 September 2017 | by Paul Perrino, CFA

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

The Internal Combustion Engine Is Not Dead Yet (Norman Mayersohn, @n_mayersohn, NYT)

While many automakers, like Ford, have shifted to developing hybrid or electric cars, Mazda has developed a new combustion engine that is “20 to 30 percent more efficient than the company’s best existing engines.” The professor of mechanical engineering at MIT thinks the combustion engine will still have a major role to play for some time.

Robopocalypse Not (James Surowiecki, @JamesSurowiecki, Wired)

This counter-piece to many Silicon Valley leaders, like Y Combinator’s Sam Altman and Tesla’s Elon Musk, argues that there isn’t any evidence that this is occurring. “Back in the heyday of the US economy, from 1947 to 1973, labor productivity grew at an average pace of nearly 3 percent a year. Since 2007, it has grown at a rate of around 1.2 percent, the slowest pace in any period since World War II.”

The Housing Industry Still Hasn’t Realized It’s Building Too Many Homes for Rich People (Daniel Gross, @danielgross, Slate)

There could be a number of new home buyers being priced out. The number of high-end homes being developed isn’t keeping pace with overall income growth. “In July, 9,000 new homes worth more than $500,000 were sold in the U.S.—only 8,000 homes worth less than $200,000 were.”


While we do not accept public comments on this blog for compliance reasons, we encourage readers to contact us with their thoughts.

The information contained in this post represents Ensemble Capital Management’s general opinions and should not be construed as personalized or individualized investment, financial, tax, legal, or other advice. No advisor/client relationship is created by your access of this site. Past performance is no guarantee of future results. All investments in securities carry risks, including the risk of losing one’s entire investment. If a security discussed in this blog entry is owned by clients invested in Ensemble Capital’s core equity strategy you will find a disclosure regarding the security held above. If reviewing this blog entry after its original post date, please refer to our current 13F filing or contact us for a current or past copy of such filing. Each quarter we file a 13F report of holdings, which discloses all of our reportable client holdings. Ensemble Capital is a discretionary investment manager and does not make “recommendations” of securities. Nothing contained within this post (including any content we link to or other 3rd party content) constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instrument. Ensemble Capital employees and related persons may hold positions or other interests in the securities mentioned herein. Employees and related persons trade for their own accounts on the basis of their personal investment goals and financial circumstances.