In a healthy vital economy, change is the norm. The process of replacing obsolete businesses and endeavors with new ones has been referred to as creative destruction. Our economy is now going through particularly wide ranging changes. Retailing is changing rapidly with the traditional store being more and more replaced by online purveyors. Health care delivery is on the forefront of massive change. Banking is going through another phase of consolidation as financial services are being delivered by a host of new financial-tech firms.

This rapid change can be unnerving. It is not, however, a sign of weakness, but one of strength. It is proof of an economy adjusting to new realities, technology and needs. As investors, we have to pick our way through these changes in order to benefit. Sometimes there is still value in a consolidating industry if played correctly, and all new businesses don’t work out.

All this makes the investment process an intellectual challenge; one that we love.

Stay steady, my friends.

The Lonely Bull