Hosomichi Strategy

I started writing an essay about the lessons learned running a paper portfolio these last 2 years, but I don’t think anyone reading this needs to hear more about the importance of Bayesian updating and the principles of value investing. I bored myself while writing it! Instead, I am just going to write about what’s been on my mind. If you don’t live here, you probably can’t understand how unbelievably rainy it has been this summer in Tokyo. In September we received nearl

Are you annoyed by investors who go on and on quoting Warren Buffett? Then you are probably not going to like this essay! Especially because it has not one, but two (!) Buffett stories about ham sandwiches. But I hope these are “deep cut” enough that you are not bored to tears. An Exceptional Ham and Cheese There is a story from Carol Loomis’ “Tap Dancing to Work” biography of Buffett. He has dinner with his friend Marshall Weinberg on a visit to New York in the 80s. Buff

A number of well-known investors extoll the benefits of investing in family-run businesses. I used to be favorably inclined as well. The large ownership stakes, long time horizons and conservative financing of family businesses align with my own goals of steady compounding with minimal risk of a blow-up. However, in reality, some of my worst returns have come from family-run companies. What gives? Evidence in Favor of the Family-run Company There is some evidence that famil