{"id":33320,"date":"2015-12-07T11:27:53","date_gmt":"2015-12-07T16:27:53","guid":{"rendered":"http:\/\/www.technologyinvestor.com\/?p=33320"},"modified":"2015-12-07T11:27:53","modified_gmt":"2015-12-07T16:27:53","slug":"the-drain-in-your-brain-of-watching-losses-mount","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=33320","title":{"rendered":"The drain in your brain of watching losses mount"},"content":{"rendered":"<p style=\"text-align: left;\">Back in New York to a pile of Christmas gift catalogs that wouldn&#8217;t quit and the excellent news that I&#8217;ll now be getting $1,718.40 a month from social security.<\/p>\n<p style=\"text-align: left;\">I once sent them a check for $40 million in taxes.<\/p>\n<p style=\"text-align: left;\">So $1,718.40 a month is an excellent return.<\/p>\n<p style=\"text-align: left;\">Should I do the IRR calculation?<\/p>\n<p style=\"text-align: left;\">An amazing number of people are begging for Christmas presents &#8212; from the guy who delivers our left-wing newspaper to the nice people at the car park who scratch up our car.<\/p>\n<p style=\"text-align: left;\">My eye doctor billed Medicare $500. Medicare approved $220.36 and paid $176.29. AARP paid $44.07.<\/p>\n<p style=\"text-align: left;\">Go figure.<\/p>\n<p style=\"text-align: left;\">But we can be grateful and happy, since there are powerful healthcare forces rooting for us.<\/p>\n<p style=\"text-align: left;\">Remember Martin Shkrell, the 32-year old CEO of Turing Pharmaceuticals? He bought and raised the price of an old drug from $13.50 to $750 a pill.<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/MartinShkrell.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33324\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/MartinShkrell.jpg\" alt=\"MartinShkrell\" width=\"350\" height=\"246\" srcset=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/MartinShkrell.jpg 350w, https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/MartinShkrell-300x210.jpg 300w\" sizes=\"auto, (max-width: 350px) 100vw, 350px\" \/><\/a><\/p>\n<p style=\"text-align: left;\">He&#8217;s apparently very bright, and now very rich. For a fascinating article, &#8220;<em>The Bad Boy of Pharmaceuticals Hits Back,\u00a0<\/em>click <a title=\"The bad boy of pharmaceuticals hits back\" href=\"http:\/\/www.nytimes.com\/2015\/12\/06\/business\/martin-shkreli-the-bad-boy-of-pharmaceuticals-hits-back.html?_r=0\" target=\"_blank\"><strong>here.<\/strong><\/a><\/p>\n<p style=\"text-align: left;\"><span style=\"color: #0000ff;\"><strong>This is fraud. Do not open the attachment. <\/strong><\/span>I received this email this morning:<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/UPSNotification.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33325\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/UPSNotification.jpg\" alt=\"UPSNotification\" width=\"776\" height=\"322\" srcset=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/UPSNotification.jpg 776w, https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/UPSNotification-300x124.jpg 300w\" sizes=\"auto, (max-width: 776px) 100vw, 776px\" \/><\/a><\/p>\n<p style=\"text-align: left;\"><span style=\"color: #0000ff;\"><strong>This is getting really boring: The bank is right. It&#8217;s fraud. <\/strong><\/span>The thief is testing my account before ripping it off:<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/postmates.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33326\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/postmates.jpg\" alt=\"postmates\" width=\"800\" height=\"94\" srcset=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/postmates.jpg 800w, https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/postmates-300x35.jpg 300w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/a><\/p>\n<p style=\"text-align: left;\"><span style=\"color: #0000ff;\"><strong>Thoughts for a desultory day:<\/strong><\/span><\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/livethislong.png..png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33327\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/livethislong.png..png\" alt=\"livethislong.png.\" width=\"410\" height=\"504\" srcset=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/livethislong.png..png 410w, https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/livethislong.png.-244x300.png 244w\" sizes=\"auto, (max-width: 410px) 100vw, 410px\" \/><\/a><\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/thenewnormal.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33328\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/thenewnormal.png\" alt=\"thenewnormal\" width=\"593\" height=\"415\" srcset=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/thenewnormal.png 593w, https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/thenewnormal-300x209.png 300w\" sizes=\"auto, (max-width: 593px) 100vw, 593px\" \/><\/a><\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/SeniorDiscounts.jpg\"><img decoding=\"async\" class=\"alignnone size-full wp-image-33329\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/SeniorDiscounts.jpg\" alt=\"SeniorDiscounts\" \/><\/a><\/p>\n<p style=\"text-align: left;\"><span style=\"color: #0000ff;\"><strong>And for your silly quiz<\/strong><\/span><\/p>\n<p style=\"padding-left: 30px; text-align: left;\"><strong>Retiree Mental Fitness Evaluation<\/strong><\/p>\n<p style=\"padding-left: 30px; text-align: left;\"><em>Giraffe Test<\/em><\/p>\n<p style=\"padding-left: 30px; text-align: left;\">1. How do you put a giraffe into a refrigerator? Stop and think about it and decide on your answer before you scroll down.<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">The correct answer: Open the refrigerator, put in the giraffe, and close the door. This question tests whether you tend to do simple things in an overly complicated way.<\/p>\n<p style=\"padding-left: 30px; text-align: left;\"><em>Elephant Test<\/em><\/p>\n<p style=\"padding-left: 30px; text-align: left;\">2. How do you put an elephant into a refrigerator?<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">Did you say, Open the refrigerator, put in the elephant, and close the refrigerator?<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">Wrong Answer.<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">Correct Answer: Open the refrigerator, take out the giraffe, put in the elephant and close the door. This tests your ability to think through the repercussions of your previous actions.<\/p>\n<p style=\"padding-left: 30px; text-align: left;\"><em>Lion King Test<\/em><\/p>\n<p style=\"padding-left: 30px; text-align: left;\">3. The Lion King is hosting an Animal Conference. All the animals attend &#8230; except one. Which animal does not attend?<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">Correct Answer: The Elephant. The elephant is in the refrigerator. You just put him in there. This tests your memory.<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">Okay, even if you did not answer the first three questions correctly, you still have one more chance to show your true abilities.<\/p>\n<p style=\"padding-left: 30px; text-align: left;\"><em>Crocodile Test<\/em><\/p>\n<p style=\"padding-left: 30px; text-align: left;\">4. There is a river you must cross but it is used by crocodiles, and you do not have a boat. How do you manage it?<\/p>\n<p style=\"padding-left: 30px; text-align: left;\">Correct Answer: You jump into the river and swim across. Haven&#8217;t you been paying attention? All the crocodiles are attending the Animal Conference.<\/p>\n<p style=\"text-align: left;\">According to Anderson Consulting Worldwide, 90% of the Retirees they tested got all questions wrong, but many preschoolers got several correct answers. Anderson says this conclusively proves that most retirees do not have the brains of a four-year-old.<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2013\/07\/HarryNewton.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-21218\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2013\/07\/HarryNewton.jpg\" alt=\"HarryNewton\" width=\"200\" height=\"199\" srcset=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2013\/07\/HarryNewton.jpg 200w, https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2013\/07\/HarryNewton-150x150.jpg 150w\" sizes=\"auto, (max-width: 200px) 100vw, 200px\" \/><\/a><br \/>\nHarry Newton who sent out the real estate syndication materials on the weekend. If you didn&#8217;t get yours, email me.<\/p>\n<p style=\"text-align: left;\">VW&#8217;s sales are plummeting. It&#8217;s being hit with all sorts of large government penalties. Yet its shares are climbing:<\/p>\n<p style=\"text-align: left;\"><a href=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/VLKAYrising.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33331\" src=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/VLKAYrising.jpg\" alt=\"VLKAYrising\" width=\"643\" height=\"353\" srcset=\"https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/VLKAYrising.jpg 643w, https:\/\/www.technologyinvestor.com\/wp-content\/uploads\/2015\/12\/VLKAYrising-300x164.jpg 300w\" sizes=\"auto, (max-width: 643px) 100vw, 643px\" \/><\/a><\/p>\n<p style=\"text-align: left;\"><script>\/\/ <![CDATA[\n(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){\n  (i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),\n  m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)\n  })(window,document,'script','\/\/www.google-analytics.com\/analytics.js','ga');\n\n  ga('create', 'UA-45200733-1', 'technologyinvestor.com');\n  ga('send', 'pageview');\n\/\/ ]]><\/script><\/p>\n<p style=\"text-align: left;\">\u00a0I sold them short, thinking VW was a cockroach stock &#8212; which it is. Bad news has piled on top of bad news. I covered quickly when I saw the market didn&#8217;t agree with me. I was wrong for all the right reasons.<\/p>\n<p style=\"text-align: left;\">Hence, this is the single biggest investment lesson of our lives:<\/p>\n<p style=\"padding-left: 30px; text-align: left;\"><strong> Get out when you&#8217;re wrong. Get out fast. And move on. You don&#8217;t want the drain in your brain of watching your losses mount.<\/strong><\/p>\n<p style=\"text-align: left;\">2015 may end us as the first year in seven that cash out performed stocks, and most bonds. I just got word that my favorite commodities fund is down 22.96% for 2015. Oil today is way under $40. It&#8217;s been a hard year, though residential real estate at moderate $700 to $1,100 monthly rents is doing fine.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Back in New York to a pile of Christmas gift catalogs that wouldn&#8217;t quit and the excellent news that I&#8217;ll now be getting $1,718.40 a month from social security. I once sent them a check for $40 million in taxes. So $1,718.40 a month is an excellent return. Should I do the IRR calculation? An [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-33320","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/33320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33320"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/33320\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}