So the UK voted to leave the EU, key political figures resigned, North Ireland and Scotland might want to leave the UK, and the stock market went into a free fall. What does it all mean? I don’t know, and nobody does. But don’t panic and close your 401(K) or move all the money into bonds.
I’ve seen this before.
There was talk on Slashdot on Friday about reselling digital media, and typical sky-is-falling predictions saying that secondhand sales will drive down prices and drive artists out of business. “Look!” some say. “There are used books on Amazon that sell for a penny!”
Yes there are. My book was one of those, until Windows 95 became old enough that retro computing enthusiasts became interested in it. Now when I want to buy a copy, I have to compete with those hipsters. But you know what? Copies of my book selling for a penny never bothered me. I’ll tell you why.
I have an opportunity to read Margin of Safety, the 1991 investment book by Seth Klarman that’s long out of print and regularly sells secondhand for hundreds, if not upwards of a thousand dollars.
Suffice it to say, I feel a certain obligation to read it since it’s highly regarded enough for people to pay those prices. Read more