Lake Tahoe is a second home, vacation real estate market. It got hit heavily by the 2008 downturn. But it’s coming back. Prices still lag.
Fortunes were made by buying foreclosures “on the courthouse steps.”
Bloomberg has a piece While Many Panicked, Japanese Day Trader Made $34 Million. The trader placed a big bet against the market with puts — as I suggested in one of my blogs — I suggested LEAPS. The Bloomberg article is here.
The lessons:
1. The BIG money is made when the blood flows in the streets. It takes serious guts.
2. The blood doesn’t flow often. But when it does it makes fortunes.
3. When the blood is flowing, most of us are too depressed to see bad times as good times.
4. Sadly, most of us think good times will continue forever.
5. If you have the discipline, it’s better not to play most of the time — i.e. when the blood isn’t flowing. As Todd says, “When in doubt, stay out.“
6. It’s increasingly difficult to find great opportunities. The applies to us as individuals and to the funds were often (but mistakenly) invest in. If I see a PPM (private placement memorandum) for yet another money transfer operation to compete with PayPal, I’ll puke.
America is SO in play. Peggy Noonan writes in the Wall Street Journal that Trump is winning many Latinos. Apparently the legal ones don’t like the illegal ones. Meanwhile Trump soars int the polls. Fascinating stuff. Click here.
Funny:
The serious lesson: Do not “upgrade” to Windows 10. Give them a year to work the bugs out.
Harry Newton, who’s leaving Lake Tahoe today to drive to Yosemite. We snagged two nights at the Ahwahnee Hotel right in the valley. To me, Yosemite is among the most beautiful places in the world — if not the most beautiful. Yesterday I played tennis at 6,000 feet, which is weird. We took the MS Dixie across the Lake from Zephyr Cove to Emerald Bay.
Lots of fat, out-of -condition retirees on the boat. Sad commentary on the state of the country.
Have a great weekend. We live in a beautiful country.
