I think I heard the term “no noting investor” from Buffet. I also call it Mr. Magoo investing. Catastrophes abound around him but Mr. Magoo just keeps going through them, Maybe sometimes ignorance can be bliss.
My brother was a claims adjuster. An insured had killed a 17 year old girl, the parent’s only child, in a car accident. How much do you think the company should have paid them?
I had this published as a comment to the editor at Forbe's several years ago. Your comments on umbrella insurance (which I agree with) reminded me of it. The agonizing problem of valuing human life after an accident ("Human values," June 14, p. 189) has no easy solution. But one quick method would be to pay the same amount the deceased carried on themselves in life insurance. It's always amazing that someone who carries $100,000 in life insurance is worth S2 million after they've been killed in a situation where someone else is liable. Let them fall asleep at the wheel and they're worth S100,000. Let someone else fall asleep at the wheel and all of a sudden they're worth S2 million.
I read this, "In a study of more than 20,000 mutual funds..." and thought about the people just starting out in investing and cringed at the amount of options they have to wade through to come up with a plan (or turn it over to a broker). It's complexity on top of excess choices.
In debate class we prepared to argue both sides of an issue and didn't know until we stood up at the front class which side we would be arguing for. It helped me over time listen to other points of view.
On life insurance: Something I notice most people don't account for is inflation. If you take out a $500,000 policy its purchasing power is $276,577 twenty years later at 3% average annual inflation (it could be better or worse).
Electronic switching displaced a lot of “plug a cable in to make the connection” phone operators. Imagine waiting for a connection to be made by cable for every smartphone call today.
I was always encouraged by the Charlie Munger comment: "Berkshire has not thrived in the past from making macroeconomic predictions. Therefore, we don't think a lot about it. We just try to do sound things and we figure economic trends will average out over the long run. We're agnostics on the economy."
Comments
I think I heard the term “no noting investor” from Buffet. I also call it Mr. Magoo investing. Catastrophes abound around him but Mr. Magoo just keeps going through them, Maybe sometimes ignorance can be bliss.
Post: How Not To Invest
Link to comment from October 11, 2025
I didn't want a cop out. Give me a dollar amount that you think a 17-year-old girls life is worth?
Post: Navigating the Unknowns of Financial Decisions
Link to comment from September 14, 2025
My brother was a claims adjuster. An insured had killed a 17 year old girl, the parent’s only child, in a car accident. How much do you think the company should have paid them?
Post: Navigating the Unknowns of Financial Decisions
Link to comment from September 13, 2025
I had this published as a comment to the editor at Forbe's several years ago. Your comments on umbrella insurance (which I agree with) reminded me of it. The agonizing problem of valuing human life after an accident ("Human values," June 14, p. 189) has no easy solution. But one quick method would be to pay the same amount the deceased carried on themselves in life insurance. It's always amazing that someone who carries $100,000 in life insurance is worth S2 million after they've been killed in a situation where someone else is liable. Let them fall asleep at the wheel and they're worth S100,000. Let someone else fall asleep at the wheel and all of a sudden they're worth S2 million.
Post: Navigating the Unknowns of Financial Decisions
Link to comment from September 13, 2025
I read this, "In a study of more than 20,000 mutual funds..." and thought about the people just starting out in investing and cringed at the amount of options they have to wade through to come up with a plan (or turn it over to a broker). It's complexity on top of excess choices.
Post: Harder Than It Looks
Link to comment from August 16, 2025
In debate class we prepared to argue both sides of an issue and didn't know until we stood up at the front class which side we would be arguing for. It helped me over time listen to other points of view.
Post: Under Pressure
Link to comment from July 19, 2025
The Dutch Tulip Bubble lasted 3 to 4 years. I don't know how long you wait until something is "mature."
Post: Lindy’s Law
Link to comment from July 12, 2025
On life insurance: Something I notice most people don't account for is inflation. If you take out a $500,000 policy its purchasing power is $276,577 twenty years later at 3% average annual inflation (it could be better or worse).
Post: Room to Maneuver
Link to comment from July 5, 2025
Electronic switching displaced a lot of “plug a cable in to make the connection” phone operators. Imagine waiting for a connection to be made by cable for every smartphone call today.
Post: The Jevons Paradox
Link to comment from June 28, 2025
I was always encouraged by the Charlie Munger comment: "Berkshire has not thrived in the past from making macroeconomic predictions. Therefore, we don't think a lot about it. We just try to do sound things and we figure economic trends will average out over the long run. We're agnostics on the economy."
Post: Good in Theory
Link to comment from June 14, 2025