It sounds cliché to repeat it again just like a mom’s tip to kids “Don’t be afraid of challenges and changes, my darling”, but there are probably some good reasons for us to revisit this motherhood statement. This year has been tough and challenging for many of us. The Covid-19 pandemic has dramatically changed people’s […]
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Moral Hazard
Moral hazard is when they take your money and then are not responsible for what they do with it. ~ Gordon Gekko 1. Relevance of Moral Hazard THE unemployment rate in the United States is now around 9%. Over 13% of all US mortgages are either delinquent or in foreclosure (Mortgage Bankers Association). Total loses […]
BACK IN 1998, Warren Buffett gave an inspirational talk to a group of MBA students at the University of Florida, College of Business. In the speech, Buffett gives his perspective on investing, in which he outlines the need to understand the underlying economics of the businesses that you invest in, and the need to stick […]