In Search of the Perfect Investment

When in doubt, stay out.

It’s our most powerful investment philosophy. There are reasons:

+ Preserving our capital is our number one investment goal.

+ There always people — friends, family, brokers, investment bankers, venture capitalists, real estate syndicators — peddling us stuff. Some of them are really good salesmen. Sadly, most of their products are not really good. There’s a huge shortage of “really good.”

+ You’ll sleep better when you say NO.

+ There’s always another opportunity. When God closes a door (i.e. you say NO), she always opens a window. Often very quickly.

I got started on writing about saying NO, as I read what’s happening in Saudi Arabia.

The whole Saudi thing is baffling. Unless you understand that the new 32-year old boss of the Kingdom is naive, inexperienced, spoiled and unbelievably arrogant. His litany of insanities includes the war in Yemen, outrageous personal spending, and bruising up his relatives. He wants us to invest in Saudi securities (including the upcoming Aramco float) and bring our businesses and our money to Saudi Arabia. He’s certifiable.

Mohammad Bin Salman Al Saud, 32

Don’t believe me? Read this fascinating piece in the New York Times:

Saudis Said to Use Coercion and Abuse to Seize Billions

RIYADH, Saudi Arabia – Businessmen once considered giants of the Saudi economy now wear ankle bracelets that track their movements. Princes who led military forces and appeared in glossy magazines are monitored by guards they do not command. Families who flew on private jets cannot gain access to their bank accounts. Even wives and children have been forbidden to travel.

In November, the Saudi government locked up hundreds of influential businessmen – many of them members of the royal family – in the Riyadh Ritz-Carlton in what it called an anti-corruption campaign.

Most have since been released but they are hardly free. Instead, this large sector of Saudi Arabia’s movers and shakers are living in fear and uncertainty.

During months of captivity, many were subject to coercion and physical abuse, witnesses said. In the early days of the crackdown, at least 17 detainees were hospitalized for physical abuse and one later died in custody with a neck that appeared twisted, a badly swollen body and other signs of abuse, according to a person who saw the body.

The full article is engrossing. Read it here.

How to stop eating sugar. Click here.

United is a totally awful airline

Remember the doctor being dragged from a United plane? We now have a new awful United story:

Recently, a passenger boarded United Flight 1284 from Houston to LaGuardia with a small dog inside a TSA-compliant carrier. A flight attendant then demanded that the carrier and animal be placed in the overhead bin for the duration of the flight, instead of under the seat, as is common practice. A witness wrote on Facebook that the passenger protested, but eventually complied. The dog died sometime during the flight.

Per United’s in-cabin pet policy, “A pet traveling in cabin must be carried in an approved hard-sided or soft-sided kennel. The kennel must fit completely under the seat in front of the customer and remain there at all times.”

I’m a sucker for this stuff.

The 32 best things we ever bought on Amazon for under $25, courtesy, Business Insider

Click here.

Federer plays tonight not before 7 PM PST. It’s on the Tennis Channel.

Why do I think these are funny? 

From the Washington Post:

From elsewhere:

Harry Newton, who’s pleased that the SEC has found its teeth. Insider trading charges were announced yesterday against a former Equifax executive who sold his shares for nearly $1 million before the company’s massive data breach was revealed to the public and the stock price plunged. Theranos founder and Chief Executive Elizabeth Holmes surrendered voting control of her blood-testing company, paid a $500,000 penalty and agreed to a 10-year ban from being an officer or director in a public company in settling civil-fraud charges with the SEC.

At one stage Theranos was worth $8 billion. Now it’s effectively valueless. Lots of intelligent people put money into Theranos.

My rule remains: Stay away from biotech and other miracle health companies, like Theranos.