Random Reads - week ending Nov 18, 2017

Warren Buffett says, “I just sit in my office and read all day.” Not everyone can afford to devote themselves to reading to that extent so here's a shortcut - the headlines that caught our eye this past week and compelled us to click and read.


Feeding the world | Raconteur

Diets are changing as millions of consumers in Asia and Africa join the global middle class. Their governments are subsiding agriculture to boost production while the US and Europe are trying to cut farm payments as they seek to reduce government deficits.



The acquisition... represents about 50 per cent of Reckon's business in terms of revenue and earnings before interest, tax, depreciation and amortisation... with MYOB paying almost the equivalent of the company's entire market capitalisation (including Thursday's 30 per cent jump).

Disclosure: Equitable Investors and its associates have an interest in the shares of Reckon.


Economists like to explain the constant churn of the economy as “creative destruction.” It implies a silver lining when a single company breaks up—something better might take its place. An interesting way to think about this concept is by looking at historical examples of companies that have come and gone.


"The idea of having more than 800 of these currencies and seemingly more joining the queue is interesting because among the qualities you want in a currency is some scarcity value. But right now you are seemingly able to start your own currency."


Factor Investors Beware: Positive SMB May Not Mean You Own Small-Caps | Alpha Architect

So (on average) any portfolio with a small allocation (above 7%) to smaller stocks, can generate a positive SMB ["Small Minus Big" factor] loading!



Bio-gene is slated to list on November 30, having raised $7m in an oversubscribed issue at 20c apiece. The company’s premise is that pests such as cattle mites, mosquitoes and grain weevils have become resistant to the standard treatments that have been around for decades.

Disclosure: Equitable Investors and its associates have an interest in the shares of  Bio-Gene.

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