Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
8:30 AM Monday, October 31, 2005: Gorgeous
weekend fall weather. Only idea -- Qualcomm (QCOM), under pressure from
news that six mobile phone and component makers -- Nokia, NEC, Panasonic,
Broadcom, Texas Instruments and Ericsson --
had reported it to the European Commission for not licensing its promised WCDMA
technology to them. Actually their real bitch is that Qualcomm is charging too
much for its royalties. I can't imagine how this will go anywhere. Qualcomm
has the technology. They need it. They'll pay. End of story. Might be a good
to pick some up for a bounceback.
Qualcomm is not for long-term holding, however. The company is now being run
by the founder's sons, who are not as competent as Daddy.
Qualcomm is one of Investors Business Daily's "10 Highest-Rated Stocks
that Investors Love to Own." The other nine are Apple (AAPL), United
Health Group (UNH), Motorola (MOT), Halliburton (HAL), Amgen (AMGN), WellPoint
(WLP), Starbucks (SBUX), Schlumberger (SLB) and Prudential Financial
How you feel about the remaining two months of this year -- your quess is as
good as mine -- will figure in whether you want to own any these stocks.
October in the stockmarket was terrible. It hurt a lot of people. Reports today's
New York Times,
the year's best-performing hedge funds are nursing big losses for October,
stung by reversals in energy stocks, takeovers and investments overseas.
Some large hedge
fund managers are facing losses of 5 to 10 percent for the month, according
to people briefed on the results. The losses may be tied in part to many funds
selling their biggest winners at the same time, putting pressure on prices.
the cruelest month for investors, has been rocky. Despite a rally on Friday,
the Standard & Poor's 500-stock index is down more than 2 percent
for the month, and Treasury yields have recently spiked. Comments by Federal
Reserve officials early in the month set off fears of rising inflation, while
crude oil prices have eased.
control your financial destiny. There is no
one else. I've reiterated this theme a thousand times. It was underlined on
the weekend by Roger Lowenstein, author of two great books -- Buffett --
the Making of an American Capitalist and When Genius Failed -- the Rise
and Fall of Long-term Capital Management. He wrote the weekend's cover story
on the New York Times Magazine. The illustration was:
The heading was "We regret to inform you that you no longer have a pension."
The article talked about three recent corporate bankruptcy filings -- Delphi
Corporation, Delta Air Lines and Northwest Airlines -- "have blown the
lid off America's latest, if long-simmering, financial debacle. It is not hedge
funds or the real-estate bubble - it is the pension system, both public
and private. And it is broken."
Virtually all pension promises are underfunded. The worst underfunding appears
in the public sector, with cities facing huge problems. To read the entire gruesome
Need a small digital camera? I
love my new Canon PowerShot SD-450. Things I like about:
+ At 5 megapixels and with great Canon optics, it produces remarkbly good photos.
+ I bought it on eBay for $309. Normal retail price is around $400.
+ It's tiny and light. Fits in the palm of your hand, in your pants pocket.
+ It has a huge 2.5" LCD screen -- great for previewing and viewing photos
you've just taken.
+ It has a straight-through viewfinder also. I prefer taking pictures with a
+ It's fast. There's virtually no shutter lag. In the old days, you pressed
the shutter and waited until the shutter went off, thereby missing great family
expressions. No more. Now it goes off instantly.
+ To capture photos, it uses an SD memory card. I take that card and slide it
directly into my Toshiba Tecra laptop -- at which point the card becomes another
hard drive. I don't connect the camera with a cable and I don't load software
into my PC. I simply copy the photos across to my hard drive, just as I do with
Word files, Excel spreadsheets and PowerPoint presentations.
The new Canon PowerShot SD-450.
The only negative of this camera is that it doesn't do bounce flash, which is
far more flattering than the straight-on strobe this one does. For bounce flash,
you're looking at a big Nikon -- say a D50 or D70 and a SB-800 strobe. Cost:
friend has a house in hurriance world in the Caribbean. He sent me
I email back:
"The awnings over the doorway dont look hurricane proof. Am I wrong?"
He emails back: "Nothing is hurricane-proof as a reading of my insurance
claims will quickly verify."
is the greatest way to sell and inform your customers: It's not junk
email or spam when you contact your customers about your new products
or services, or new prices or new features, etc. I don't read emails about Viagra
or penis-enlargement. But I do read emails from my suppliers -- the ones
I spend money with.
The greatest software for sending professional emails to lists of customers
is AY Mail. You get an HTML editor for colorful messages and a library
of templates, so it's even more idiot-proof. I used the earlier version for
years. It was fabulous. Now there's a new version out. At between $90 and $400,
this is the greatest bargain in the history of software. It will pay
itself off with the first few orders it generates. Get it. Click
Carlyle Group revisited:
Remember those great PowerPoint slides on Friday showing "The Ten Reasons
Why You Really Went into Private Equity." A friend read the slides
and reminded me of the ultra-famous email sent 5 1/2 years ago from Korea. In
case you missed it (I had), here it is:
most dangerous food
Life Was Good,
a young buy-side analyst in the Carlyle Groups Seoul office, sent the
following e-mail message to a group of 11 recipientsincluding
one at UBS Warburg and another at Credit Suisse First Bostonon
Tuesday, May 15, 2001, via Carlyles system.
One or more
of Mr. Chungs "friends" loosed it, and it has been circulating
around Wall Street since. According
to Bloomberg News, Mr. Chung resigned from the firm on Friday. Neither he
nor Carlyle returned calls for comment.
Like a King.
been in Korea for about a week and a half now and what can I say, LIFE IS
a spanking brand new 2000 sq. foot 3 bedroom apt. with a 200 sq. foot terrace
running the entire length of my apartment with a view overlooking Koreas
main river and nightlife . . .
Why do I need
the main bedroom is for my queen size bed
is going to fu*k every hot chick in Korea over the next 2 years (5 down, 1,000,000,000
left to go)
the second bedroom is for my harem of chickies, and
the third bedroom is for all of you fu*kers when you come out to visit my
ass in Korea.
I go out to
Koreas finest clubs, bars and lounges pretty much every other night
on the weekdays and everyday on the weekends to (I think in about 2 months,
after I learn a little bit of the buyside business Ill probably go out
every night on the weekdays).
I know I was
a stud in NYC but I pretty much get about, on average, 5-8 phone numbers a
night and at least 3 hot chicks that say that they want to go home with me
every night I go out.
I love the buyside
... I have bankers calling me everyday with opportunities and they pretty
much cater to my every whim - you know (golfing events, lavish dinners, a
night out clubbing). The guys I work with are also all chill -- I live in
the same apt building as my VP and he drives me around in his Porsche (1 of
3 in all of Korea) to work and when we go out.
What can I say
... live is good ... CHUNG is KING of his domain here in Seoul ...
So ... all of
you fu*kers better keep in touch and start making plans to come out and visit
my ass ASAP, Ill show you guys an unbelievable time ... My contact info
is below ... Oh, by the way ... someones gotta start fedexing me boxes
of domes (condoms) ... I brought out about 40 but I think Ill run out
of them by Saturday . . .
The Carlyle Group
Suite 1009, CCMM Bldg.
12, Yoido-dong, Youngdeungpo-ku
Seoul 150-010, Korea
Tel: (822) 2004-8412
Fax: (822) 2004-8440
A Doctor was addressing a large audience in Tampa. "The material we put into
our stomachs is enough to have killed most of us sitting here, years ago. Red
meat is awful. Soft drinks corrode our stomach lining. Chinese food is loaded
with MSG. High fat diets can be disastrous, and none of us realizes the long-term
harm caused by the germs in our drinking water. But there is one thing that is
the most dangerous of all and we all have, or will, eat it. Can anyone here tell
me what food it is that causes the most grief and suffering for years after eating
seconds of quiet, a 75-year-old man in the front row raised his hand, and softly
said, "Wedding Cake."
Pray for Vanessa
A friend coaches soccer. This morning he emails me: "One
of my soccer girls, Vanessa Pean (16 years old, gorgeous, brilliant, great athlete),
died Saturday night in a car accident -- FANTASTIC kid. She died around the
corner from my house."
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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, click
here and here.