Punit Kumar

Why Core Inflation?

In my opinion the best definition of inflation is increase in money supply. That is what the "Austrian Economist" use and it was confirmed by studies of Milton Friedman. Whenever there is increase in money supply there is boud to be inflation. If you look at money supply increase over the last 20 years or so, it has been increasing a the pace of 6-7%/year. So inflation in the long-term is going to be around that number.

There are many inflation deflators used to underestimate inflation if you use CPI as inflation indicators. For example, 1) Hedonistic adjustments
2) Using Substitution pricing 3) using rent equivalents for housing.

Also, many costs including medical costs, cost of college education, tuition, fees, books etc are under-represented in calculation of CPI.

The Long Case for Fidelity National Information

I read the FIS and FNF proxy statements. I like the companies, but I don't like the management. I believe the executive compensation is out of control at both the companies. The same CEO runs both companies, draws full-time salaries, options, perks/benefits etc. I don't believe board is acting in the best interest of the common shareholders. Related party transactions are a pain to untangle.

I like FAF, Fiserv (their competitors) better. Even though, these are good businesses in the long-run. They are down due to real estate markets. Finding honest management is hard.

What You Can - And Can't - Learn from Warren Buffett

I think Vahan Jahijian is an idiot, he is trying to stir up controversy where nothing of any substance exists. Yes, there is some problems with his views on Estate Taxes. WB is arguing it one way, but doing things around estate taxes. But WB has long said that none of his money will go to his children and it is actually true. After his death none of his money will be going to his children. So, this is less of a controversial view than laid out in this book.

As for investment success, one of the best thing about WB is his ability to realize businesses with stretegic advantage over their competitors (economic moats) and then making large bets on those businesses.