A reader emailed: If you’re so excited about new industries, list a few. Here’s a few:
3-D printing, solar on your roof (solar continues to drop in price), in-home computer-controlled greenhouses, LED lights, some breakthrough drugs (see Gilead), tiny portable refrigerators (a la Bill Gates), portable toilets (for use in poor countries), the cloud, heavy duty data analytics (helping companies find value in their massive data stores), new materials (as in the Dreamliner), private social network sites, new drugs (look at Gilead), new ways of financing ventures — crowd-sourcing, microfinance, at-the-market equity line equity financing, new ways of managing your money online, etc.
5 Reasons Why the Bears Are Wrong About Berkshire Hathaway. Warren Buffett is smarter than you. Berkshire is my largest holding. Of late it’s eased a tinge:
Motley Fool just did a piece that began:
Berkshire Hathaway’s growth over the last year would be impressive, at least, if you ignored the upward drift of the Dow Jones Industrial Average. However, taken together with the massive run up in the rest of the market, Berkshire’s prospects look less rosy. In fact, Berkshire-favored stocks like DaVitaHealthCare Partners and Chicago Bridge & Iron have given back most of their gains from Spring.
On May 13, Michael Price of MFP Investors gave a slide presentation at London Value Conference arguing that the fair value of Berkshire Hathaway’s stock should be roughly 20% lower than it is today.
So are the bears right about Berkshire? Here’s five reasons why I believe the answer is an emphatic “No.”
1. Berkshire has better accounting practices than 95% of U.S.-listed companies.
2. Heinz is likely to surprise.
3. Burlington Northern Sante Fe has a lock on US shale oil transportation.
4. Berkshire’s entry into the commercial underwriting market will dramatically increase the company’s float.
5. Buffett’s protégés are a chip off the old block.
You can can read the entire Motley Fool article. Click here.
I bought BA on a its recent dip — when the fire broke out in an Ethiopian Airlines 787 Dreamliner. It’s bounced back. And today’s New York Times story has a positive piece on repairing the hole the fire made. BA is high-priced, with a P/E of 19.2. I think it can climb another 10% to 15% this year. The new Dreamliner has a big order book and is cheaper to fly. But whether the plane is build from carbon fiber, aluminum, titanium or gold, won’t stop Delta losing Susan’s luggage. Remember, Delta stands for Don’t Expect Luggage To Arrive.
15 Charts That Should Terrify Saudi Arabia, according to Business Insider. They basically show oil and gas production outside Saudi skyrocketing and prices ebbing. Which is bad news for Saudi Arabia. Couldn’t happen to a more deserving country. I’m not a fan of their form of radical Islam and the many ills it has foisted on the world. Click here.
The tale Scottish Jew and the golf club he couldn’t join..
A Scottish Jew decided to retire and take up golf, so he applied for membership at a local golf club.
About a week later he received a letter that his application has been rejected.
He went to the club to inquire as to why.
Secretary: You are aware that this is a Scottish golf club?
Scot: Aye, but I am as Scottish as you are, ma’am, my name is MacTavish.
Secretary: Do you know that on formal occasions we wear a kilt?
Scot: Aye, I do know, and I wear a kilt too.
Secretary: You are also aware, that we wear nothing under the kilt?
Scot: Aye, and neither do I.
Secretary: Are you also aware, that the members sit naked in the steam room?
Scot: Aye, I also do the same.
Secretary: But you are a Jew?
Scot: Aye, I be that.
Secretary: So, being Jewish, you are circumcised, is that correct?
Scot: Aye, I be that, too.
Secretary: I am sorry, but the members just would not feel comfortable sitting in the steam room with you, since your privates are different from theirs.
Scot: Ach, I know that you have to be a Protestant to march with the Orangemen. And I know that you have to be a Catholic to join the Knights of Columbus. But this is the first time I’ve heard that you have to be a complete prick to join a golf club.
Harry Newton whose handsome, intelligent and favorite son was in town yesterday:
The only time they’ll “pose” these days is when they have that cursed cell phone glued to their head. Photo by Nikon 7100 and 18-200 mm lens, the best all-around Nikon lens.
Most Newton family “vacations” seem to begin at B&H Photo on Ninth and 35th and end walking home through Times Square, where the “famous” Naked Cowboy continues to ply his meager talents for the tourists:
After reading this week’s Economist on the slowing BRIC, I’m much less excited by BHP, Rio and FCX, and will probably dump my small holdings today.
I’d give you a link to the Economist’s article (hint: it’s in this week’s issue). However…
In reference to micro-finance… I am involved with our local high school Interact Club (the youth branch of Rotary International). This past year the students decided to raise money and then to use Kiva http://www.kiva.org/ — a micro-finance service- to loan out the money. It was a tremendous learning experience. They had about $400 and as a group (as much as you can get group action from any bunch of teens) they reviewed hundreds of Kiva applications for funds.
The most challenging aspect was in getting the public school bureaucracy to understand what Kiva is and to get their heads to accept the idea. Fortunately, we have several Rotarians in the administration who made it happen, but the initial bureaucratic reaction was shock and fear.
The Interact club settled on loaning funds to a woman in Bangladesh who plans to use it to buy a stove to use in a local bakery. The students found many applications that were nothing but begging and many that were superficially fraudulent. Even if the money is never paid back (and there have been regular tiny payments) it was a great experience.
I don’t know if Kiva even tries to make a profit or if this story has anything to do with investing, but direct micro loans are possible, helpful, and instructive. And, in my philosophy, a hell of a lot better than having governments involved!
Just flew on Delta from Denver to JFK, NY. The flight was fine, though late, and the crew were very helpful once airborne. But, Denver was a fiasco! As they we boarded the gal informed me, running my ticket through the reader, that I wasn’t registered! Same for the fellow behind me. Turned out they were loading the NYC flight to LaGuadia from the same gate, apparently scheduled to leave roughly the same time. Yet the sign said JFK flight! Hey, what about the JFK flight scheduled to leave in 15 minutes? Where’s it? Boards all still said “On time” and listed that gate. Lots of confusion. Finally plane arrived after its departure time, the LaGuadia flight took off and almost an hour late, we taxied out.