Sunday, May 17, 2009
From Alan Abelson this week; ...such as President Obama's remarkable revelation that China might grow tired one of these years of lending us money (who knew?). And that, he posited, might pose a serious threat to our ability to continue to happily live beyond our means. Wow! Good stuff.
This article brings up some of the reasons I favor Norway as an investment destination.
According to this guest post in Barron's about demand for natural resources there are 306 million farmers in India. According to Google Public Data that exceeds the US population. Yikes.
Yesterday a reader asked what type of tools I use for stock selection with the context, as I took it, being along quantitative lines. Obviously there are plenty of quants who are wildly successful by every definition of the word but there must be an element of what's right for you in this discussion as well.
The reason I am not comfortable with quantitative analysis is that I perceive there to be a too much of a head down in the books and never looking up aspect to it. Generically speaking models cannot account for everything and occasionally when a quantitative model misses something the ensuing blow up becomes newsworthy.
While the tone of this may be unfair, it is my perception so my reality. I feel as though value can be added by relying on common sense.
A possible tie in to this week's video; I was saddened and shocked to hear (three months after the fact) that former pro-beach volleyball player Mike Whitmarsh committed suicide in February. Whit and his partner Mike Dodd were one of the dominant teams on tour, mostly in the 1990s and a little into this decade. He was living in San Diego, working in real estate in some capacity, had a beautiful wife and two kids. As a player he earned $1.6 million which may not have made him wealthy after netting everything out but handled intelligently it was enough to make things easier than for most folks.
I believe the tie in to the video is along the lines of the importance of figuring yourself out (which may not be easy and may be an ongoing process) before getting too caught up in how much your portfolio is up or down. Very sad news indeed.
The picture is from a simpler time for our fire department picking up hose after a drill (if you watched this weeks video that comment will make sense).
Full plate=short post
Posted by Roger Nusbaum at 5:03 AM