USD | rob-thompson.com

Tag Archives: USD

Mar201014

Why should smokers pay for fatties?

Americans get really weird when we talk about obesity. They’re terrified of hurting the feelings of fat people and treat their condition as a mystery, a phenomenon that modern science may someday unravel. If you can’t drink four litres of cola a day and stay skinny, it must mean you have a slow metabolism or something – anything rather than admit that junk food creates porkers. Take California. Research shows that obesity costs the state almost $7.7bn a year. With this in mind, the state legislature last week proposed a new tax on… tobacco.

Just 13% of adults smoke in California, yet lawmakers want to penalise this harassed minority to help pay for the ballooning costs of obesity. But why not tax fast food instead? American shops are awash with sugary and fried snacks that contain almost no nutritional value. It’s not food, it’s calorific entertainment – so charging extra for it is reasonable. It wouldn’t bankrupt junk-food makers, and junk-food eaters might not even notice. But it finally would force junk food to contribute to healthcare instead of just weighing on the system.

feed icon16x16 Why should smokers pay for fatties?

Enjoy this post? Get more like it by subscribing

Originally posted 2008-11-18 00:02:05.

Mar201014

admin

1

4 tips to achieving wealth

The Chairman’s Letter in most annual reports makes a pretty good cure for insomnia but not so Warren Buffett’s annual missive to Berkshire Hathaway’s shareholders – invariably packed with wise and pithy observations. In his 43 years at the helm, Buffett has grown Berkshire’s assets by 21.1% annually. Here are some highlights from this year’s letter:

Only four things really count when making an investment: “a business you understand, favourable long-term economics, able and trustworthy management and a sensible price tag”. Everything else is speculation.
Avoid the unnecessary risk of the next “new” thing: Buffett’s biggest investments include American Express, Wells Fargo, Procter & Gamble and Coca-Coca, all founded in the 19th century.
Even long-term investors should recognise when it’s time to sell: Last year Buffett cashed in his 1.3% stake in PetroChina: bought for $488m in 2003; sold at an eightfold profit of $4bn.
Investors should be realists, but the best are optimists too: Buffett has taken insurance premiums worth $4.5bn from investors betting that markets will be lower in 15-20 years than they are today. He’s confident he’ll hang on to them.