Weekend Reading

14 October 2017 | by Paul Perrino, CFA

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

We’re Going to Need More Lithium (Jessica Shankleman, Tom Biesheuvel, Joe Ryan, and Dave Merrill; @Jess_Shankleman@tbiesheuvel@JoeRyanNews@merrill_dave; Bloomberg Business Week)

The rise of electric vehicles has put additional pressure on the need for Lithium. “Starting about two years ago, fears of a lithium shortage almost tripled prices for the metal, to more than $20,000 a ton, in just 10 months.” But, the actual impact to the cost of batteries is minimal. “Even if the price of lithium soars 300 percent, battery pack costs would rise only by about 2 percent.” ”

Victoria’s Secret Is on the Right Runway (Sarah Halzack; @sarahhalzack; Bloomberg Gadfly)

The CEO of L Brands (the parent company of Victoria’s Secret) Les Wexner had to make some tough choices. This had some short-term consequences, but is expected to benefit the company in the long-run.

Mastering three strategies of organic growth (Kabir Ahuja, Liz Hilton Segel, Jesko Perrey; @AhujaKabir@JeskoPerrey, McKinsey&Company)

Most well run firms seek to grow their business through organic growth. The best approach to achieving this goal is through a diversified approach of strategies. Continuous investing and creating leads to the best results.

No, That Robot Will Not Steal Your Job (Ruchir Sharma, NYT)

The employment landscape looks very different now than it did in more than 25 years ago. “…McKinsey & Company, the consulting firm, has pointed out, about a third of the new jobs created in the United States were types that did not exist or barely existed 25 years ago.”

Hash Power – A Documentary on Blockchains & Cryptocurrencies (Patrick O’Shaughnessy, @patrick_oshag, The Investor’s Field Guide)

A 3 part podcast series that explores blockchains and cryptocurrencies.

Clients of Ensemble Capital own shares of L Brands (LB).

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.