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Harry Newton's In Search of The Perfect Investment Newton's In Search Of The Perfect Investment. Technology Investor.

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8:30 AM Thursday, January 19, 2006: "All I need is one transaction," the CEO pleaded. I was there to provide it. Write a check. Give him the money. Put him out of his misery. Here was a magazine publisher whom The Great Boom of the 1990s had passed by and The Great Publishing Depression of the early 2000s had hit with a vengeance. His sales were by down two-thirds, but his expenses had stayed up -- buoyed by the CEO's fantasy that bad times were temporary. Just create some new successful magazines and a persuasive web site. Then the former glory would all come back.

Fact is that Greenspan's "productivity improvements" have brought sea changes to many industries. The Internet has replaced print media. Magazines and newspapers are suffering. The Wall Street Journal has figured a profitable Internet "solution." The New York Times hasn't. Some newspapers are trying to morph their classified advertising into a local eBay, offering the ads for cheap and taking a piece of the final sale.

Sadly, my friend is still searching for an Internet strategy. Meantime, his $62,000 a month rent bill and bloated accounting staff is eating him alive.

I escaped out a side door.

The Internet continues to wreak havoc on traditional businesses. The Internet creates low-cost competition from tax-free places, putting local high-cost retailers at a terrible disadvantage. My friend closed his Toshiba laptop distributorship because Toshiba went direct for sales and service. And then Toshiba started having "sales" on its own site.

You can't predict sea changes. But they're coming faster than ever. My father's words ring even more true today: Take some money home. My words remain: Stick with 15% stop losses.

They're renting prime office space for over $100 a square foot in Manhattan: What's more people are paying it. And, guess what? It's driving the price of Manhattan office buildings up even higher. Yes, I'm about to own a tiny part of a building with over-$100 a square foot rents. Will we be able to sell the building for more than the $500 a square foot or so we're paying? I asked this question last night and was told we could flip the building before we had paid for it. And who said the real estate boom was ebbing?

Why America remains the greatest place to live: From a reader:

Harry,
I hope I'm not being too familiar, but I've been reading your column for about a year now. I'm surrounded by pessimists who insist America is going down the tubes.

You mentioned in your column how, before leaving Australia, you were told that Americans "substitute enthusiasm for intelligence." That struck me, but I can't recall the story behind it and how you eventually took that as a compliment. I recall it meant not giving in when you are told that "it can't be done".

Could you please recount the story for us. We could all use a reminder why the United States is still one of the great places to live in the world.

Regards,
Cody Dunagan

Happy to oblige. When I left Australia in 1967, my boss said I'd love the Americans because, just like me, they substituted enthusiasm for intelligence. Initially I thought he was being insulting. But, later after working with Americans, I found him to be profoundly complimentary. He was highlighting the fact that we (I'm now an American) pushed through and made big accomplishments because we believed, because we were enthusiastic.

By contrast, Europeans tended to analyze things to death, losing the opportunity and often not starting that new business or introducing that new product. Personally, in my career, I had introduced many successful products because I believed in the product. And my belief -- my enthusiasm -- was contagious. My customers caught it and bingo we had success. In later years, Nike tried to codify this philosophy with "Just Do It."

America remains the greatest place to live. It rewards enthusiasm with success beyond your wildest imagination.

A sea change is coming to eBay: My eBay seller bargained with me but insisted on a money order. I asked how much eBay/PayPal was costing him. He answered, "Normally 9-10% depending on the item and value. Some items as high as 14% and some as low as 9%." That's very expensive, I thought. Another friend told me he sells faster (and far cheaper) on Craigslist.

No exercise yesterday: I didn't play tennis yesterday. I didn't bike. It was raining. I feel awful. I feel old. I'm tried -- from what? From doing nothing? From sitting at my desk, moving electrons around? Fortunately I've scheduled two hours of tennis today. We've all got to exercise every day.

Broadband access from your laptop: The Wall Street Journal's Walt Mossberg waxes enthusiastically today portable broadband access from Cingular and Verizon. Cingular, he says, is faster. Verizon is more ubiquitous. They both charge $60 a month. I've been using the Verizon. I absolutely love it. To use either service, slide one of these things into your laptop's PCMCIA slot.



For Walt's piece, click here. Some things Walt doesn't mention:
1. Some companies have several of these things and lend them out to road warriors as they need them. You can easily switch machines. Verizon and Cingular don't care.
2. Try using one without installing the software. It will work.
3. The Verizon one works in a Mac (despite what Walt says). I'm guessing the Cingular one will also.

The funniest video I've seen in a long, long while. I'm still laughing. It's perfectly clean, and tasteful (for a change). Click here.

The Australian Tennis Open has started. Here's the TV schedule. Best is to ask TiVo to record tennis. Be wary. Because of the huge time difference -- 16 hours -- ESPN plays it live and repeats it, so you can get duplication.

Jan. 19
2:00pm-6:00pm
Early round play
ESPN2
Jan. 19
11:00pm-2:00am
Early round play
ESPN2
Jan. 20
2:00pm-6:00pm
Early round play
ESPN2
Jan. 20
10:00pm-1:30am
Early round play
ESPN2
Jan. 21
12:00pm-4:00pm
Early round play
ESPN2
Jan. 21
10:00pm-1:00am
Early round play
ESPN2
Jan. 22
11:00am-2:00pm
Round of 16
ESPN2
Jan. 22
7:00pm-11:00pm
Round of 16
ESPN2
Jan. 23
2:00pm-6:00pm
16/Quarterfinals
ESPN2
Jan. 23
9:30pm-1:30am
16/Quarterfinals
ESPN2
Jan. 24
2:00pm-6:00pm
Quarterfinals
ESPN2
Jan. 24
10:00pm-2:00pm
Quarterfinals
ESPN2
Jan. 25
2:00pm-6:00pm
Mens Qtrs/Women's Semis
ESPN2
Jan. 25
9:30pm-12:30am
Mens Qtrs/Women's Semis
ESPN2
Jan. 26
3:30am-6:00am
Men's Semifinals
ESPN2
Jan. 26
3:00pm-5:30pm
Men's Semifinals
ESPN2
Jan. 26
11:30pm-12:30pm
Men's Semifinals
ESPN2
Jan. 27
12:30pm-1:00am
Men's Semis/Women's Finals
ESPN2
Jan. 27
3:30am-6:00am
Men's Semis/Women's Finals
ESPN2
Jan. 27
3:00pm-5:20pm
Men's Semis/Women's Finals
ESPN2
Jan. 27
9:30pm-11:30pm
Men's Semis/Women's Sinals
ESPN2
Jan. 29
3:30am-6:30am
Men's Finals
ESPN2
Jan. 29
12:00pm-3:00pm
Men's Finals
ESPN2

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+ Dumb reasons we hold losing stocks. Click here.
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+ Manhattan Pharmaceuticals: Click here.
+ NovaDel Biosciences appeals. Click here.
+ Hana Biosciences appeals. Click here.
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+ Steve Jobs Commencement Address. The text is available: Click here. The full audio is available. Click here.
+ The March of the Penguins, an exquisite movie. Click here.
+ When to sell stocks. Click here.


Harry Newton


This column is about my personal search for the perfect investment. I don't give investment advice. For that you have to be registered with regulatory authorities, which I am not. I am a reporter and an investor. I make my daily column -- Monday through Friday -- freely available for three reasons: Writing is good for sorting things out in my brain. Second, the column is research for a book I'm writing called "In Search of the Perfect Investment." Third, I encourage my readers to send me their ideas, concerns and experiences. That way we can all learn together. My email address is . You can't click on my email address. You have to re-type it . This protects me from software scanning the Internet for email addresses to spam. I have no role in choosing the Google ads. Thus I cannot endorse any, though some look mighty interesting. If you click on a link, Google may send me money. Please note I'm not suggesting you do. That money, if there is any, may help pay Claire's law school tuition. Read more about Google AdSense, click here and here.
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