Author: admin (Page 11 of 20)
I am an idiot.
Dr. Marc Faber, the investment guru, concluded his monthly bulletin (June 2008) with the following comments.
Dr. Marc Faber tells it how it is:
“The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer, it will go to India. If we purchase fruits and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car, it will go to Germany. If we purchase useless crap, it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on prostitutes and beer, since these are the only products still produced in the US.
I’ve been doing my part…..”
‘Hello, is this the Police Office?’
‘Yes. What can I do for you?’
‘I’m calling to report ’bout my neighbor Jack Murphy…He’s hidin’ Marijuana inside his firewood! Don’t quite know how he gets it inside them logs, but he’s hidin’ it there..’
‘Thank you very much for the call, sir.’
The next day, twelve St. Johns Police Officers descend on Jack’s house. They searched the shed where the firewood is kept. Using axes, they burst open every piece of wood, but find no marijuana. They sneer at Jack and leave.
Shortly, the phone rings at Jack’s house. ‘Hey, Jack! This here’s Floyd….Did the Police come?’
‘Yeah!’
‘Did they chop your firewood?’
‘Yep!’
‘Happy Birthday, buddy!’
Moral of the story: Newfies know how to get’er done!
“I consider it completely unimportant who in the party will vote, or how; but what is extraordinarily important is this—who will count the votes, and how.” – J. Stalin
“Trust, but verify.” – R. Reagan
“The price of freedom is eternal vigilance” – T. Jefferson
If you grow up in Hawaii, raised by your grandparents, you’re ‘exotic, different.’ Grow up in Alaska eating mooseburgers, a quintessential American story.
If your name is Barack you’re a radical, unpatriotic Muslim. Name your kids Willow, Trig and Track, you’re a maverick.
Graduate from Harvard law School and you are unstable. Attend 5 different small colleges before graduating, you’re well grounded.
If you spend 3 years as a brilliant community organizer, become the first black President of the Harvard Law Review, create a voter registration drive that registers 150,000 new voters, spend 12 years as a Constitutional Law professor, spend 8 years as a State Senator representing a district with over 750,000 people, become chairman of the state Senate’s Health and Human Services committee, spend 4 years in the United States Senate representing a state of 13 million people while sponsoring 131 bills and serving on the Foreign Affairs, Environment and Public Works and Veteran’s Affairs committees, you don’t have any real leadership experience. If your total resume is: local weather girl, 4 years on the city council and 6 years as the mayor of a town with less than 7,000 people, 20 months as the governor of a state with only 650,000 people, then you’re qualified to become the country’s second highest ranking executive.
If you have been married to the same woman for 19 years while raising 2 beautiful daughters, all within Protestant churches, you’re not a real Christian. If you cheated on your first wife with a rich heiress, and left your disfigured wife and married the heiress the next month, you’re a Christian.
If you teach responsible, age appropriate sex education, including the proper use of birth control, you are eroding the fiber of society. If , while governor, you staunchly advocate abstinence only, with no other option in sex education in your state’s school system while your unwed teen daughter ends up pregnant , you’re very responsible.
If your wife is a Harvard graduate laywer who gave up a position in a prestigious law firm to work for the betterment of her inner city community, then gave that up to raise a family, your family’s values don’t represent America’s. If you’re husband is nicknamed ‘First Dude’, with at least one DWI conviction and no college education, who didn’t register to vote until age 25 and once was a member of a group that advocated the secession of Alaska from the USA, your family is extremely admirable.
Warren Buffet always has advice on finances. Considering his personal net worth, I think it’s probably a good idea to heed it.
Buy American. I Am.
By WARREN E. BUFFETT
THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary. So … I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities. Why? A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now. Let me be clear on one point: I can’t predict the short-term movements of the stock market. I haven’t the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turns up. So if you wait for the robins, spring will be over.
A little history here: During the Depression, the Dow hit its low, 41, on July 8, 1932. Economic conditions, though, kept deteriorating until Franklin D. Roosevelt took office in March 1933. By that time, the market had already advanced 30 percent. Or think back to the early days of World War II, when things were going badly for the United States in Europe and the Pacific. The market hit bottom in April 1942, well before Allied fortunes turned. Again, in the early 1980s, the time to buy stocks was when inflation raged and the economy was in the tank. In short, bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price. Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497. You might think it would have been impossible for an investor to lose money during a century marked by such an extraordinary gain. But some investors did. The hapless ones bought stocks only when they felt comfort in doing so and then proceeded to sell when the headlines made them queasy.
Today people who hold cash equivalents feel comfortable. They shouldn’t. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts. Equities will almost certainly outperform cash over the next decade, probably by a substantial degree. Those investors who cling now to cash are betting they can efficiently time their move away from it later. In waiting for the comfort of good news, they are ignoring Wayne Gretzky’s advice: “I skate to where the puck is going to be, not to where it has been.”
I don’t like to opine on the stock market, and again I emphasize that I have no idea what the market will do in the short term. Nevertheless, I’ll follow the lead of a restaurant that opened in an empty bank building and then advertised: “Put your mouth where your money was.” Today my money and my mouth both say equities.