Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
8:30 AM Monday, August 15, 2005: Buy
puts on oil. Think about the logic. Oil has skyrocketed. It closed at $67.18
on Friday. The logic? Refinery problems. Not logical. Refinery problems should
affect the price of gas, not oil. If refineries are having difficulties, they
are buying less, not more oil. Therefore oil should fall. What's driving up
oil at present? It has to be speculation. And it has to drop -- at least temporarily.
P.S. Oil inventories are high. The summer driving season is ending. Only concern:
another major terrorist act. That's why you buy puts -- they limit your exposure.
impressed with Disney's new chief, Robert A Iger. Or at least what
I read about him in today's New York Times. Click
here. The could be one of those classic turnaround situations:
costs: It's happened to all of us. A fantastic
investment at the time, turns sour later. Two lessons from the weekend:
1. A friend "invested" in a software company. He knows nothing about
software, whether it works or how you sell it. The company has run out of money,
again. And he is reluctant to put money in, again.
2. The New York Times led its Sunday business section with a $200 million
hedge fund whose entire funds have disappeared. The article was called "Paradise
and Money Lost." Click
The lessons are simple:
+ If it sounds too good to be true, it is.
+ If controls aren't in place (e.g. auditors) steer clear.
+ Previous high returns look great on paper, but could easily be fictional.
+ Don't put all your money into any "sure" thing. Nothing is.
+ A little due diligence and a little less enthusiasm go a long way.
+ Getting into something you know nothing about is a recipe for disaster.
+ Lose your principal. It takes a long time to get it back -- even at healthy
+ Capital preservation is the name of the game.
+ Learn to say "NO." It's cheaper and better for your sanity.
In 1914, when Britains
Mesopotamian Expeditionary Force entered Basra, Iraq did not exist as a state.
The three provinces that form modern Iraq Basra, Baghdad, and Mosul
were part of the Ottoman Empire and had been ruled well and badly by the Turks
and their Sunni Arab cohorts for several hundred years. -- The Creation of
Iraq, 19141921 by Judith S. Yaphe.
Zealand is gorgeous (and safe): I'm
trying to convince the family to go with me for a vacation.
to play golf:
A guy named Mulhany wanted to play golf and this was the only threesome
in which he could play. So, he joins the Rabbis and plays 18 holes.
At the end of
the 18 holes, his score was 104. The Rabbis had shot 69, 70 and 72. So, he says
to the Rabbis "How come you guys shoot such good golf?"
The lead Rabbi
says, "When you lead a religious life, join and attend the right synagogue,
you are rewarded."
Mulhany, a true
lover of golf, thinks "what have I got to lose?" He finds a synagogue
near his home, converts to Judaism, joins the synagogue, regularly attends services
and leads a holy life.
About a year later,
he again plays golf with the three Rabbis. He shoots a 104 and they shoot a
69, 70 and 71. He says to them: "OK, I converted, joined a synagogue, live
a religious life and I still shoot a 104. What's the deal?"
did you join?" asks the lead Rabbi.
is the reply
The Rabbi retorted,
"Schmuck, that one is for tennis!"
+ Manhattan Pharmaceuticals: Click
+ NovaDel Biosciences appeals. Click
+ Hana Biosciences appeals. Click
+ All turned on by biotech. Click
+ Steve Jobs Commencement Address. The text is available:
Click here. The full audio is available. Click
+ The March of the Penguins, an exquisite movie. Click
+ When to sell your stocks. Click
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. That money
will help pay Claire's law school tuition. Read more about Google AdSense,
here and here.