This morning I had a lovely breakfast with a lady money manager, Lisa Svensson, of Morgan Stanley. She says her biggest job — over all her many years in investing — is to convince her clients to stay in the market.
Two hours later, I receive a quarterly report from
Rick Harris, superb money manager, Alex-Brown, Washington, D.C. He writes:
Why We Stay Invested Through Thick and Thin.
Just a quick word about why we generally stay invested within our Equity Index portfolio through thick and thin and especially now as we enter the home stretch of a very long bull market.
While it is true quite some time has passed since the last U.S. recession, data reflects since WWII, recessions occur 12 percent of the time. During that same period, the stock market has generated a positive return 81 percent of that time.
It’s been gorgeous here.
This is looking west to Manhattan from Roosevelt Island, early in the morning. The sun is reflecting off the East River and a big black residential building. On the left is the 59th Street Bridge, of Simon and Garfunkel fame.
Favorite Real Estate Headline
1894 Gilded-Age Mansion, Montclair NJ
A stately home “untouched by the passage of time” — except for boiler and air-conditioning problems.
No one needs one of these. Unless they want to quickly kill a lot of people. In which case it’s very effective.
From today’s Washington Post
GOP congresswoman, Rep. Claudia Tenney (R-N.Y.) claims “‘so many’ mass murderers end up being Democrats.”
She did not give evidence to back up her claim.
Favorite Reader’s Digest story
Gus took four tires to a friend’s garage sale and was asking $35 a piece. He needed to step away for a bit so he asked a friend to watch them for him.
“In case someone offers less, how low are you willing to go?” the friend asked.
“Try for more. But I’ll accept $20 each,” Gus said and left.
When he returned, the tires were gone.
“How much did you get for them?” Gus asked excitedly.
“Twenty dollars each.”
“Who bought them?”
“I did.”
Harry Newton, who has a deal, “Stop telling me about how much you love your Tesla. Stop telling me how it drives itself on the highway. Stop telling me how you never — ever — take it to the shop for service. Stop telling me how fast it accelerates. Stop telling me it’s your best, ever driving car.”
In return, I promise that my next car will be a Tesla. Though I love my Subaru, my next car will be a Tesla, I promise. I wish I owned more Tesla stock — it’s done well over the past few years. This is the past five years.
Tesla isn’t just a car company. It’s a battery company. It’s an energy company. One of its biggest successes is in the state of South Australia. And it’s one of two companies mentioned in the Tony Seba presentation that’s blowing everyone’s mind:
Jim, a reader, just emailed me:
“HI Harry what a great piece Tony Seba put on. It helps me realize just how out of touch I am and need to spend more time keeping up. I am hoping for a nice correction so I can do some buying again, I will try and see the future more now.”
If you haven’t watched Tony, you owe yourself a treat: Click here.
Seba mentions only two stocks in his presentation — Tesla and Nvidia. Both are expensive. Both keep going up.
