"Oil Discovered In Hell"
Warren Buffett's favourite story
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Good morning, everyone.
I’m in New York this week. The World Cup buzz is huge - much bigger than I’d expected. Everywhere you look there’s a TV screen with the football on. I was in a bar last night off Wall Street where a cluster of 20-something Croatian’s were drinking and singing with a 77-year-old Panama fan.
I spoke to Paul McNamara, one of the head honcho’s at ITV (British TV network). Paul has set up an incredible outdoor studio for their World Cup footage in Brooklyn, which I wanted to see in person. In the most British excuse known to man, he told me their Health & Safety had banned any future visits.
I’m going to Keen’s Steakhouse tonight. Send any NYC bar or restaurant recommendations my way!
This week’s newsletter: The new black trainer trend, John Paulson gets his AMEX reward points back, Warren Buffets favourite story and Lloyd Blankfein day trading from his iPad.
The Investors Route To Heaven...or Hell
When faced with questions on valuation, Warren Buffett tells a story passed down by his mentor Benjamin Graham...
It’s the story of an oil prospector who dies, and meets St. Peter at the Pearly Gates.
When told his occupation, St. Peter said: “Oh, I’m really sorry...”
“You seem to meet all the tests to get into heaven. But we’ve got a problem...”
“See that pen over there? That’s where we keep the oil prospectors waiting to get into heaven. And it’s packed - we haven’t got room for even one more.”
The oil prospector thought for a minute.
Then he said: “Would you mind if I just said four words to those folks?”
“I can’t see any harm in that”, said St. Peter.
So the oil prospector cupped his hands, took a deep breath and yelled at the top of his lungs:
“OIL DISCOVERED IN HELL!”
Immediately, the oil prospectors broke the lock off the door and stampeded out, on a mission to reach hell as fast a possible.
“You know, that’s a pretty good trick”, St. Peter said.
“Come on in! The place is yours - you’ve got plenty of room in heaven now.”
The oil prospector paused...
He scratched his head, then said:
“No. If you don’t mind, I think I’ll go along with the rest of ’em. There may be some truth to that rumour after all!”
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Finance Culture
Big controversy on investing Twitter this week as a shipping exec called working from home “white collar fraud”. Near unanimous sentiment from all quarters that this is nonsense. I really like Ryan, but strongly disagree with his take. Watch his clip below and see what you think:
Ex-Goldman Sachs CEO and all round banking superman Lloyd Blankfein was asked about his personal portfolio as a retired man. He’s heavily invested in “risky assets”, 95% of his personal book is in equities, with the vast majority in single stocks. He trades every day, usually from his iPad.
Hedge Fund billionaire John Paulson won a case against his old business partner, who now has to pay him $48 million. As part of the fee, Paulson was also paid back “$112,936 connected to American Express rewards points that the arbitrator found were improperly retained.”
Ex-UK Prime Minister Rishi Sunak was wearing this pair of On Cloud trainers on stage with Goldman Sachs International Co-CEO Anthony Grutman this week. As a trend, I’ve noticed that dress shoes seem to be on the way out. The majority of senior finance figures now opt for comfortable black running trainers with a suit, no tie. We’re not talking fancy $1200 Loro Piana trainers. I mean actual running trainers - black ASICS, black AllBirds, black Saucony’s. On stage, in the office, everywhere. It’s like there’s now a positive correlation between seniority and black running trainers.
All replies to this newsletter are confidential, so let me know what you think.
Recommendation
Check out this recent interview with Warren, 94-years-old but as sharp as ever. I found the exact 1985 Berkshire Hathaway Shareholder Letter where Warren re-tells the oil prospector story.
I have started an X/Twitter account, with 25 followers, and have no idea what I’m doing. Follow me here.
The King of Charts
Torsten Slok at Apollo was given one of the most valuable things you can get in finance this week - and he got it for free. Here’s what happened…
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Joseph Cass