It all started with two western railroads needing access to Chicago and all of the rail traffic that flowed through there.  James J. Hill and Edward H. Harriman the opposing railroad magnates ultimately set in motion an epic battle of wills to control access to Chicago—in the process, they nearly destroyed the entire financial system of the US and created one of the most Read More

The rule with oligopolies is that eventually, someone cheats a bit—then everyone cheats a lot. That’s the reason that oligopolies rarely last very long—particularly when you are dealing with global commodities that are not all that scarce. Or at least, that’s how most economists think of the world. I would like to offer a slightly different axiom—if you are making too much money, you Read More

Last night, a friend sent me this video    http://www.youtube.com/watch?v=hlxHoboDz2k&feature=player_embedded       with the subject line—“Bull market in tear gas. How do we get exposure…??” That got me thinking—I bet there is a raging bull market for the guys who produce this stuff. As I watch the chaos in Egypt, Brazil, Greece, Turkey and other countries, I am reminded that even within the chaos, there are bull markets. Uncertainty Read More

Over the last few months, I have had this recurring thought. It sort of takes the form of a girl having a conversation with Ben Bernanke. I know, very odd, but bear with me. Girl: Mr. Ben, why are you so sad? You’re the most powerful person on earth. Bernanke: This deflation is unstoppable. I keep trying, but I just cannot figure out how to create Read More

What if the Central Bankers have it all wrong? What if low rates are actually the problem, not the solution? We all know and basically accept that low rates thwart the creative, destructive process of capitalism, where inefficient companies go bankrupt and remove competition from the marketplace so that stronger companies can thrive. If you can forever refinance and reduce your interest cost, it’s Read More

Following a number of requests, I have attached my presentation from the Las Vegas Value Investor Congress.             Please remember that I am the Chairman and CEO of Mongolia Growth Group and this is clearly not a recommendation to do anything regarding the shares. Categories: Comments On Events Positions Mentioned: none To receive email updates on new posts, use the subscribe Read More

“It took Zimbabwe twenty-five years to destroy their currency. With Japan’s spirit of innovation, I believe that we can destroy ours in less than five years!!” Mind you, I don’t speak Japanese, but last month, as I watched some remarks from the new head of the Japanese Central Bank, and I could have sworn that I actually understood Japanese for a brief moment. Then, Read More

I’m in Las Vegas for the Value Investor’s Congress where I am presenting today (wish me luck). After a few dozen trips to Vegas over the years, I have to admit that the bright lights, gaudy furnishings and generalized circus atmosphere leave me somewhat numb. Vegas just isn’t “my sort of place.” That doesn’t mean that I cannot be stimulated in other ways. It Read More

Tomorrow morning, the Non-Farm Payroll number will be released. It’s the moment in time where the world’s fastest computer algorithms square off against each other to access the government number first and then launch market orders before someone else’s algo does the same thing. While the fireworks are going off at 08:30:01am, investors will be spending time to understand what the numbers actually mean. Read More