California’s drought conditions continue to reflect the effectiveness of conservation measures and increased precipitation.  The state’s second snow survey indicated that the snow pack was at 130% of average at the measurement point in the Sierra Nevada.  Reservoir levels are up, but still well below desired levels.  El Niño-fueled storms have delivered January rainfall at … Continued

The following phrase is taken from then Secretary of Defense Donald Rumsfeld’s response to a question during a news briefing on February 12, 2002. “Reports that say something hasn’t happened are always interesting to me, because as we know, there are known knowns; there are things we know we know.  We also know that there … Continued

This excerpt from S. T. Coleridge’s “Rhyme of the Ancient Mariner”, while generally an apt description of coastal areas like California, doesn’t have to be true. California’s water shortages have made the national news with increasingly severe restrictions on water usage.  The State’s problems stem from increasing population, natural fluctuations in precipitation and other factors. … Continued

Investors would be well served by carefully considering dollar announcements relating to auto industry results and activities in the context of the industry’s size. For example, GM and Lyft recently announced an alliance and a $500 million investment by GM.  Lyft management has stated that the partnership reflects a common view on a number of … Continued

The political class seems to think that a household income of $250,000 per year is middle class.  What do you think? Even a rudimentary familiarity with the realities of incomes in the U.S. would recognize that household earnings in that area are near the top of the range.  The most recent Census Bureau data showed … Continued

I thought one of my favorite quotes would be very timely today by Dr. Martin Luther King, Jr., “Darkness cannot drive out darkness; only light can do that.  Hate cannot drive out hate; only love can do that.” Whether discussing political issues, personal challenges, or economic and market forces this quote provides great perspective. Fear … Continued

Anyone that has actually waded through all of the footnotes that accompany public company financial statements should be aware that the accounting treatment for certain portions are complex and not as uniform as one might have thought.  In assessing an investment opportunity it is important to understand the ramifications of the applicable accounting standards and … Continued

It appears very likely that, in 2016, U.S. sales of motor vehicles will exceed 18.0 million, a new record, handily topping the previous record of 17.35 million vehicles in 2000. This is very good news, supporting an improving economy and providing the background for strong wage gains for auto workers.  Unfortunately, history tells us that … Continued

One of the more interesting business conundrums is; are prices set by costs or are costs reflective of prices?  Clearly, there are no easy answers.  Many business contracts are negotiated on a “cost/plus” basis, while others are based on a firm bid price for a specific product or service. Investors should be aware of the … Continued

A proliferation of rapid-delivery apps has turned the smart phone into a magic wand that can direct a wide variety of products and services to your door.  Of course, instant gratification tends to carry a price, with a plethora of fees, and delivery and service charges.  Is it worth it?  That is the critical question … Continued

This is an old adage, generally applicable to golf, in that if you have a good shot, you like it, if you have a bad shot, your opponent likes it. This concept tends to be just as true away from the game of golf.  For example, lower oil prices are good for motorists and other … Continued

Successful investing is not rocket science.  Morgan Housel, a columnist at the Motley Fool, recently wrote in The Wall Street Journal, “Live below your means.  Save the difference.  Invest in a low-cost, diversified portfolio.  Have a long-term outlook and be patient as compound interest works its magic.” This is an exceptionally clear and concise guide … Continued