Successful investing is knowledge. The best knowledge is knowledge few know.
The stockmarket is an open book. Everything is public. And everyone can find everything on everything with a laptop, an Internet connection and Google.
That’s good and bad. But no one has an edge.
Great investors look for an edge. Something you can do that few know about. Your own business works. But so does real estate. Walmart moves out. You buy the building ultra-cheaply and re-purpose it for light manufacturing, cheap office space, indoor tennis, whatever.
Every investment works if the price you buy in at is low enough.
My friend bids cheaply on ten projects. The sellers are offended. But my friend says “I’ll be around and ready to close fast, with cash.”
A week later the seller has spent the proceeds from his sale, but the sale has fallen through. Now desperate, he takes my friend’s ridiculously low offer.
The key is knowledge. Learn. Study. Become an expert. Then pounce. I’m presently pouncing. We’ll see.
Pouncing with enthusiasm is the best.
Weekend reading:
+ I just priced an online bachelors degree at a quarter of a live-in four year college degree. Many colleges will go broke in coming years as online courses eat their lunch. For more read, Business School Disrupted. A fascinating study of what the Harvard Business School is doing, or trying to do. Click here.
+ After 5 Months of Sales, Colorado Sees the Downside of a Legal High. Change isn’t always pretty. But better than Prohibition. Click here.
+ The Economist publishes its quarterly on Technology. Click here.
+ I’m also reading Robert Cringely’s new book, The Decline and Fall of IBM. Maybe I’ll short IBM today? Pick up the kindle edition here.
Yesterday’s column was among my better ones. I talked about the virtues of borrowing at today’s low rates. And the idea of shorting IBM. If you didn’t read it, click here.
The classic Jewish joke.
Walking along the beach, Goldstein finds a bottle, picks it up, and-surprise! surprise!-a genie emerges. The genie instructs Goldstein that he will grant him one wish, and one wish only. Goldstein says he wishes for world peace. The genie tells him he gets that wish a lot, but it is impossible to fulfill, so, if he doesn’t mind, please try another wish.
In that case, Goldstein says, he would like more respect from his wife, who maybe would spend less time and money on shopping and prepare a decent home-cooked meal for him every once in a while and possibly make some attempt to satisfy his sexual desires.
The genie pauses, then says, “Goldstein, tell me what, exactly, it is you mean by world peace.”
The two classic Gentile jokes:
+ A Gentile goes into a men’s clothing store, where he sees an elegant suede jacket. “How much is that jacket?” he asks the clerk.
When the clerk tells him $1,200, the Gentile replies, “I’ll take it.”
+ At the last minute, a Gentile calls his mother to announce that, owing to pressure at work, he will be two hours late for the family Thanksgiving dinner.
“Of course,” his mother says, “I understand.”
Harry Newton loves to watch Stephen Colbert. Last night, when referring to the swapping of Bowe Bergdahl for five nasty Talibans, Stephen said “On this my feelings are somewhere between complete ignorance and righteous indignation.” Mine too. He said it so much better.
It’s a wonderful world. Daughter Claire, son Michael, daughter-in-law Anne, son-in-law Teddles and new 6-month old granddaughter Eleanor are visiting this weekend. My birthday is on Tuesday. Having the kids around and still being alive … what else is there? I’m blessed.
Djoko is killing Gulbis this morning. The French Open finishes this weekend. It will be on The Tennis Channel and NBC.Should be good.
Today’s employment report was OK, actually in line with what the economists expected (maybe the first time ever). Hence I feel comfortable going off to play tennis at 10:00 AM.
Have a great weekend. I will.
