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Sep28
Invest With A Tailwind
Warren Buffett said it was better to invest with a tailwind than against a headwind.  As I've thought about this, it can apply to companies as well as industries.  Let me give a couple of examples.

General Motors and Ford are working against a headwind of high pension costs, some outdated factories, restrictive union rules and a vehicle line that emphasizes power and results in low gas mileage while gas prices are high.  Toyota is working with the tailwind of low pension costs, the most efficient factories in the world, flexible work rules and a vehicle line that emphasizes fuel efficiency.

Examples of industries might be the energy companies that have been benefiting from high energy prices and airlines where many went bankrupt because of overcapacity, high inflexible labor costs, and high energy costs.
Some industries aren't really clear whether they have a headwind or a tailwind.  Wind power has the tailwind of government subsidies but has the headwind of not being cost competitive without it.

What are companies or industries that you think have tailwinds?  Do you think the tailwinds will persist?  Why?

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Other entities which should benefit from experiencing tailwinds include regional turboprop airplane carriers, flight training instructors, sail makers for ocean racing yachts, salt flat timed trials for speed testers, long-haul truck drivers, racing cyclists, kite flyers, bow-and-arrow hunters, thoroughbred horse racing track owners, racing skiffs, New York Yankees, sky divers, hot air balloonists, swallows, eagles, vultures, and other migrating birds.

Will tailwinds persist? That depends upon which way the wind's blowing...

Very funny Bob :-). One of my brokers today sending over a run of energy related bonds put the title: Sheer Energy--At the Tights Again. Very funny pun.

Also, geese -- I nearly forgot the geese!

So how's THIS for punny? -- After some grumbling about the significant expense involved, I went ahead anyway and hired a local electrician (who calls himself "Mr. Electric") to install a master surge protector for the entire house at the outside electrical connection box (rather than fool with several dozen multiple-outlet circuit breaker surge protectors -- each of which takes up precious wall plug space -- to protect all the computer, cable, phone, and audio gear scattered throughout my home). Mr. Electric showed up to do the work in his custom-painted panel truck, with an advertisement for his local business emblazoned in bright red, blue, and yellow across the sides of his vehicle. It read, "By the time I finish your job, I will also have completely removed your shorts!"

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