Hi there… Today, we're exploring Blockbuster's digital downfall, flipping the pancake on price gouging policies, and spinning a yarn about Gandhi's nonviolent revolution.

— Jeff

Wisdom of the Day

Blockbuster's Downfall

Blockbuster, the video rental giant that went from Hollywood hero to box office bomb faster than you can say "Be kind, rewind." It's a story that brings to life Philip Fisher's wisdom: "Companies that have failed to go uphill have invariably gone downhill."

Blockbuster, once a $5 billion behemoth with 9,000 stores, turns down an offer from Netflix to handle their online business. It's like being offered a sturdy umbrella on a sunny day and saying, "No thanks, it never rains here." But the digital storm was coming, and Blockbuster was caught without so much as a raincoat.

In business, as in cycling, you're either moving forward or falling over. Blockbuster stood still on an escalator moving down, thinking they were maintaining their position. But in a changing market, standing still is the same as going backwards.

So, next time you're eyeing an investment, ask yourself: Is this company pedaling uphill, or are they coasting towards a Blockbuster-sized pothole? Because in the market, as in movies, the sequel isn't always as good as the original.— Jeff

The Inverted Lens

Could Predicting Elections Be Its Biggest Blunder?

Read Article

In a move that's got economists reaching for the antacid faster than you can say "inflation," Vice President Kamala Harris has proposed banning price gouging in food and groceries. It's a plan that's as popular with voters as free samples at Costco, but before we all start cheering for cheaper cheese, let's flip this economic pancake over and see what's cooking on the other side.

What if this well-intentioned policy leads to empty shelves instead of full stomachs? By capping prices, we might inadvertently discourage suppliers from bringing food to market. It's like telling a farmer they can only charge peanuts for their produce – they might just decide it's not worth planting at all.

Moreover, this focus on price gouging might distract us from the real ingredients in the recipe for high food prices: supply chain snarls, increased demand, and a hefty dose of government stimulus. We could end up with cheaper food, but it might be less nutritious or diverse. It's like ordering a bargain buffet only to find it's all rice and beans.

Remember, in economics, as in cooking, sometimes the simplest-looking recipes can be the trickiest to get right. Let's make sure we're not curing our economic indigestion with a policy that could give us a much worse case of financial heartburn down the road.

MULTIDISCIPLINARY WISDOM

The Architect of Nonviolence

Mohandas Karamchand Gandhi, the architect of nonviolent resistance. His life's work is like a master class in turning moral conviction into a force more powerful than any army.

A shy lawyer transforms into the father of a nation, armed with nothing more than a spinning wheel and an unshakeable belief in the power of truth. Gandhi's philosophy of satyagraha, or "truth-force," wasn't just about passive resistance; it was an active pursuit of justice that could melt the hardest of hearts.

Gandhi's approach was like judo for the soul – using the opponent's strength against them, not through force, but by appealing to their conscience. His Salt March of 1930 wasn't just a protest; it was political theater that exposed the absurdity of colonial rule.

Gandhi believed that to change the world, you first had to change yourself. "Be the change you wish to see in the world," he said, and boy, did he walk the talk. His simple lifestyle and commitment to manual labor weren't just for show – they were his way of spinning a new reality, one thread at a time.

REC

📚 Book: Gandhi's Experiments with Truth

Dive into Gandhi's autobiography for lessons in patience and persistence. It's like getting life advice from the master of nonviolent resistance himself. In today's volatile market, Gandhi's principles of truth and steadfastness are more relevant than ever. A must-read for investors looking to build a principled approach to wealth creation.

🎥 Video: Munger on Life's Mistakes

Watch Charlie Munger's insights on avoiding life's pitfalls. It's like getting a free masterclass in decision-making from Buffett's right-hand man. His wisdom on learning from mistakes is particularly relevant in today's unpredictable market. A great reminder that in investing, as in life, our biggest losses often come from our own errors.

🎓 Course: Valuation of Goodwill (Free)

Sharpen your valuation skills with this free online course. It's like learning to read between the lines of a company's balance sheet. In today's market, understanding intangible assets is crucial. Perfect for investors looking to spot hidden value in companies.

🔧 Tools: SeekingAlpha.com

Keep your finger on the market's pulse with this comprehensive investment research platform. It's like having a team of analysts at your fingertips. In today's information-driven market, staying informed is half the battle. A must-have for any investor serious about making data-driven decisions.

*A message from our sponsor.

Compounding Wisdom

👀 In Case You Missed It

MY WATCHLIST

$SBUX, $GOOGL, $CELH, $DIS, $CHWY, $CROX, $ULTA

Support Our Work ☕️

If you’ve enjoyed our content and would like to support our work, consider buying us a coffee! Your contributions help us continue delivering valuable insights and keep The Wisdom Compounder thriving. Every cup fuels more wisdom!

Thank you for your support!