The essence of a good investment manager is one who studies a given business and extrapolates the future cash flows that the business is likely to generate over the next several years. Based on the cash flow and asset assessment, they can then arrive at their expected rate of return if they bought a fraction of that business at a given price.
Globalization has produced a new of level of interdependence among us. The economy and multinational supply chains do not abide by political boundaries. A computer ordered in Brazil is designed in California and assembled in several other countries. Economic integration was the first strong evidence of a new era.
On a Friday night in 1983, I was in a taxi in New York riding home from dinner with friends. A drunk driver ran a red light and hit the cab, and I was thrown toward the glass partition. I tried to duck, but my face hit the glass, and the impact fractured my cheekbone, my eye socket, my collarbone and several ribs.