Harry Newton's In Search of The Perfect Investment, Technology Investor. Harry Newton
AM ET, Thursday, December 24, 2009: The Christmas
present that keeps on giving:
to build your 2010 portfolio, Useful articles
Constructing a Cautious Portfolio for 2010 by Amit Chokshi in Seeking
+ Money Lessons
of a Lost Decade by Brett Arends of the Wall
column by yours truly (in case you missed it). Click InSearchOfThePerfectInvesment.
estate bargains are finally emerging. Rules (at least my rules):
+ Only buy what
you can rent.
+ You must earn
a minimum of 12% -- cash on cash. That means the net profit (before taxes
and before leverage) should be 12% on the total price.
+ Bargain your
heart out as if you don't care whether you win or lose the property. Be thoroughly
content to walk. There are plenty of fish in the ocean. You should buy something
today at less than half what it sold for three years ago.
+ Don't fantasize.
Don't figure in turning a rental into a condo. Don't fantasize about flossying
up the lobby and upping the rents. You get what you get.
+ Don't borrow
short-term, believing you'll refinance in two years. The banks might be just
as bad then. We don't know. And then, you could lose it all.
+ Don't figure
on any appreciation on your building. That's not just conservative. That reflects
the fact you could bulldoze a third of America's retail and office space and
probably not make one penny difference to rents.
+ And don't buy
a building whose design is dysfunctional.
Christmas present to me. I've spent a lot of
time in 2009 telling my investing mistakes and begging you not to follow my
idiocy. It's your turn to throw your best investing ideas my way. Please send
me an email. It may be my best Christmas present. .
I'll share the best ideas. Please send me that email.
see everyone on Monday after I've kissed the family and made good cheer.
A woman goes to the post office to buy stamps for her Chanukah cards.
She says to the clerk "May I have 50 Chanukah stamps please."
says the clerk.
The woman says
"Oy vay, my God, has it come to this? Okay, give me 6 orthodox, 12 conservative
and 32 reform."
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 on this site. Thus I cannot endorse any, though
some look interesting. If you click on a link, Google may send me money. Please
note I'm not suggesting you do. Read more about Google AdSense,
here and here.