Linkfest: January 30, 2018

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What I am reading today

This Bond Bull Market Still Has Legs (Daily Reckoning)
New Cars in a New Economy: China's Two Speed Car Market (CKGSB Knowledge)


The Robots are Getting Owned (The Reformed Broker)
Famous Value Investor Howard Marks Shares His Thoughts on the Stock Market in 2018 (Vintage Value Investing)
Bill McDonough in memoriam (Lawrence H. Summers)
Smithsonian Leader Who Helped Launch the American Indian Museum Dies at 91 (mithsonian History)
Retirement Foolishness or Retirement Tragedy? (Subramoney)
More on talent optimization and where it is weak and strong (Marginal REVOLUTION)
Think You're Immune to Advertising? Think Again (INSEAD Knowledge)
What Drives Long-Term National Debt Growth? (Visual Capitalist)

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Warren Buffett's 2017 Letter: Takeaways for Indian Investors

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Warren Buffett's shareholder letter for the year 2017 was released a few days back. I am going to take some of the themes in this year's letter and provide an Indian context and takeaway. (For a collection of past shareholder letters organised and annotated around major themes, please check - ' The Essays of Warren Buffett ' by Lawrence Cunningham ). 1. Valuations are expensive. So Buffett didn't do any big deals last year. Others may ignore the level of prices and pay any price to do deals. But not the Oracle of Omaha. - Indian valuations are stretched too. The Sensex P/E currently stands at 23.xx. High PEs tend to foreshadow lower returns in the next few years, till valuations moderate. A wonderful table compiled by Stableinvestor.com  shows this trade-off very well. With a starting PE of 24+ (which is very close to current levels), the 3 year return has been -5% historically. The takeaway for Indian investors is: valuations are stretched. The thing to do now...
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