Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
8:30 AM EST, Wednesday, April 4: How
much of my net worth do I give my best hedge fund manager? I met with him last
night. He has clients with 20% of their net worth with him and clients with
under 5%. I like him because the bulk of his own investible funds are in his
own fund. He has many times invested in his own fund than what I have invested.
This is good. I like him because he's conservative and doesn't use leverage
-- he doesn't borrow money from the bank and therefore he's not subject to margin
calls, like Amaranth (the hedge fund that went bust as a result of a leveraged
natural gas bet.)
he steal all the money and flee the country? Yes. Is he likely to? No. He points
out, "hedge fund managers who steal money typically don't have money in
their fund. Moreover, why would I steal my own money?"
hedge fund's net returns:
Hedge funds differ
from mutual funds in one BIG way: typically the hedge fund manager has his own
assets in his fund. His goal is to perform for himself. You go along for the
rise. The name of the game for a mutual fund manager or a traditional money
manager is to gather other people's assets.
How to say NO. It's
the hardest word in the English language. But you have to learn to say it. And
say it often. If you say Yes and don't deliver, you'll be pariah. When you say
No, don't give a detailed explanation. If you do, the person will argue with
your "logic." If you get into a discussion, your reasons will appear
vacuous and you'll look like an idiot. The real reason might be as simple as
"I don't trust you." But why hurt someone's feelings? Learn to say
NO and shut up.
your time again: Last weekend was daylight
savings time -- in years past. Check your computers and "automatic"
clocks again. I bet they added another hour. Mine all did. This is insane.
lemonade out of bad lemons: Advertising is
moving away from print to the Internet -- viz. Google's success. Hence, the
magazine business is collapsing. The newspaper business is hanging on, barely.
was one of my favorite magazines.
Here's the cover of their last issue. It was
36 pages, plus cover. I remember when it used to be hundreds of pages. It has
10 pages of advertising. In my days, the rule was 50% editorial, 50% advertising.
Their latest ratio 75% editorial, 25% advertising -- a guaranteed way to lose
for 29 years and 1,384 issues.
According to a
Pew Internet study, in April 1998 n April 1998 nearly half of all Americans
surveyed in the study said they had read a newspaper the day before, while 29
percent said they had read a magazine. By May 2006 those figures had dropped
to 40 percent and 24 percent, respectively. During the same period, people who
said theyd gone online for information more than doubled, from 25 percent
to 53 percent.
Many of my friends
have dropped all their paper subscriptions -- newspaper and magazines.
joys of self-love
Sister Candice: "If you keep playing with yourself Johnnie, you're going
to go blind."
Johnnie: "Can I keep doing it until I need glasses?
joys of loving someone else
Sister Josephine: "When you're tempted by fate, ask yourself
one question. "Is an hour of pleasure worth a lifetime of shame?"
Harry: asks: "Sister, how do you make it last for an hour?"
This column is about my personal search
for the perfect investment. I don't give investment advice. For that you have
to be registered with regulatory authorities, which I am not. I am a reporter
and an investor. I make my daily column -- Monday through Friday -- freely available
for three reasons: Writing is good for sorting things out in my brain. Second,
the column is research for a book I'm writing called "In Search of the
Perfect Investment." Third, I encourage my readers to send me their
ideas, concerns and experiences. That way we can all learn together. My email
address is .
You can't click on my email address. You have to re-type it . This protects
me from software scanning the Internet for email addresses to spam. I have no
role in choosing the Google ads. Thus I cannot endorse any, though some look
mighty interesting. If you click on a link, Google may send me money. Please
note I'm not suggesting you do. That money, if there is any, may help pay Claire's
law school tuition. Read more about Google AdSense, click
here and here.