3-1a4b4a Financial cycles ≠ Product cycles

See Warren Buffett and Ludwig Lachmann

In Lachmann’s parlance, the Portfolio Structure ≠ the Plan Structure

Related:

• 7-1a4a1 Wealth created ≠ the P&L of a business. Remember - you get what you measure.

• 2-1a7a2 Assets with actual substance or weight have the best prospects over the long term

• 2-1a7a3 Ben Graham - ‘Markets are a voting machine in the short term and a weighing machine in the long term’

• 3-1a4b2a A great business at a fair price is superior to a fair business at a great price

• 3-1a4b2 Price can only convey so much

• 12-1f 言葉と物事の関係性が一対である必要性はない (e.g., 二項同体)

• 5-1b4a Amara’s law - we expect too much in the short-run, but too little in the long-run

  • 5-1b4a0 We overestimate the technological impact in the next 10 years, but underestimate the next 20 (and often right about 15 years later)

• 6-3b2.3a Credit is not money

• 6-3b2.3c When the money is printed, financial assets appreciate