I have lived in Marin County, possibly America’s preeminent left wing enclave, for over two decades. Marin residents are old (and getting older), white, and vote heavily Democratic. They overwhelmingly embrace abortion rights, drug rights, and gay rights. Church attendance is extremely low; mind-altering pharmaceutical drug use and therapist attendance is extremely high. The cult of self is Marin’s dominant religion. And outside of Greenwich, Connecticut there are probably more money managers, per capita, in Marin than anywhere else in America. Marin’s attitudes are not unique. The investment community and the media/cultural elites on both coasts share a suspicion (or dislike?) of religious, socially conservative Americans. That might explain why companies that cater to the values of Red State residents are poorly understood, poorly followed, and often undervalued by the stock market. Continue reading
[note: a slightly different version of this post originally appeared on my Yahoo! Finance contributor page]
I’m a sports fan, but I don’t plan on watching the Final Four this weekend. Sure, the players are inspiring and the games are usually exciting and dramatic. I just can’t bring myself to tune in to a bunch of unpaid employees generating billions for one of the most corrupt rackets in the world, the NCAA. But–as regular readers of this blog know all too well by now–my distaste for so-called amateur athletics pales next to the utter disgust I feel for our broader system of higher education.
Talk about an industry desperately in need of disruption.
Wednesday was a big day for my fund. Earnings season is upon us and two of our largest longs reported quarterly results. I expected both companies to smash analysts’ estimates. Sure enough, that’s exactly what happened. You’d think I’d be celebrating big gains in both stocks, but unfortunately, you’d only be half right.
Too bad this isn’t baseball. Batting .500 will get you into the Hall of Fame in that sport. In my game, though, it generally won’t get you too far.
I glanced at a recent issue of the Stanford alumni magazine the other day. It featured an interview with former school president Gerhard Casper and an excerpt from his book on “addressing the challenges of higher education.” The piece was underwhelming, to put it mildly. There was the usual pabulum about school rankings, measuring outcomes, and fostering diversity. But there wasn’t a single word about the biggest problem facing higher education today:
It costs too damn much!
Our nation’s universities, public and private, have crushed an entire generation with debt. All told, young adults owe more than a trillion dollars in student loans. That’s a huge drag on our economic growth. And where is all that borrowed money going (besides the Wall Street banks that underwrite many of the loans)? It’s propping up one of the most backwards and wasteful industries in the world: academia.