Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
8:30 AM Thursday, November 3, 2005:
The stockmarket gotcha. I take a little Whole Foods (WFMI) off the table
and this animal goes even higher. If I hadn't, it would have plummeted.
Whole Foods is way expensive, with a P/E of 61 times their expected full year
earnings. We'll hear more next week when they reports their third quarter results.
The key to Whole Foods burgeoning stock price is threefold:
The organic/natural foods food sector is hot -- though not for all. United
Natural Foods, Whole Foods' biggest supplier, tanked recently after its president
and CEO left. .
2. Whole Foods' stores are great and its products even better. 100% of
our families' meals this week have come from Whole Foods.
3. There's plenty of potential growth.
Whole Foods has only 180 stores. By contrast, Wal-Mart has 5,434
Where will this end? I'm guessing not for a while. I'm glad I got many of you
into Whole Foods.
The Wall Street Journal picked up on theme I've been
writing about. Says the Journal, "There's an unprecedented wave
of capital around the world, and its owners are all anxiously looking for a
better return. The result is a potentially problematic "global game of
chicken" that has investors diving into riskier assets." For the Journal's
All this is why
I keep saying: Capital preservation is the name of the game. When in
doubt stay out. When 2005 is done, treasuries and muni bonds will have done
far better than many, many hedge funds, private equity funds, etc.
Time to smell the roses. Yesterday
was gorgeous. It was not for sitting in my office and searching for the perfect
investment. I took my new camera -- the Canon PowerShot SD-450 (for more, click
here) and walked through New York's Central Park, down Fifth Avenue
to lunch at the University Club (where I said "NO" to a great new
opportunity.) Let me share my walk (not the opportunity).
The two tall buildings are the Time Warner Center. In the basement is a 57,000
square foot Whole Foods.
This nice man was fixing a fence. I used fill-in flash.
About 200 yards from Fifth Avenue is this delightful grotto.
He had his music and his sun. He was happy.
They sell photographs to the tourist next to the park opposite the GM building.
And sell them rides on horse-drawn carriages.
The American flag looks especially great in the sun.
The vendor was shy about posing. But my attention got him some business. So
he was happy.
Two English and one Welch lady were on their lunch break from selling at Abercrombie
and Fitch. They came over for a working holiday and were loving America.
Many talented artists will draw you for money. I hope you don't come out looking
like this fellow.
Central Park has a small zoo. Note the seal.
The zoo has an amazing variety of animals. If you're over 65, it costs only
$1.25. Younger, it's $6.
This is a favorite statue to climb on be photographed with. Central Park is
rife with surprises.
These are the famous Central Park elms. They're probably the most expensive
elms in the entire world. Most American Elms have died of Dutch Elm disease.
Not these. Everyone should have such good medical care.
New York's Marathon this weekend will attract around 40,000 runners. This is
the finish line, which most will see. Last year Hendrik Ramaal won the male
race in just over 2 hours. Paula Radcliffe won the women's race in two hours,
23 minutes. I couldn't run in 5 hours.
As they run the final few yards, they'll run over a bunch of logos from the
race's many sponsors, one of which is New York City's Sanitation Department.
This is softball field just down from the finish line.
When the weather
is nice, I take my friends into the softball field, seat them on a park bench,
feed them a $7 sandwich and make pose silly. We did this on Tuesday.
A friend sent me the first photo. It's clearly the most clever collection
of urinals I've ever seen. I wanted to know where it came from. He didn't know.
So I googled "urinal.jpg."
There are many uirinal.jpg photos on the web. The only one of note was this
one. I don't know where it is either.
yet another dumb blonde joke
A contestant on "Who Wants to be a Millionaire?" had reached the final
plateau. If she answered the next question correctly, she would win $1,000,000.
If she answered incorrectly, she would pocket only the $32,000 milestone money.
And as she suspected it would be, the million-dollar question was no pushover.
It was, "Which of the following species of birds does not build its own
nest, but instead lays its eggs in the nests of other birds? Is it A) the condor;
B) the buzzard; C) the cuckoo; or (D) the vulture?"
The woman was
on the spot. She did not know the answer. And she was doubly on the spot because
she had used up her 50/50 Lifeline and her Audience Poll Lifeline. All that
remained was her Phone-a-Friend Lifeline. The woman hoped she would not
have to use it because ... her friend was, well .... blonde. . She had no alternative.
She called her friend and gave her the question and the four choices. The blonde
responded unhesitatingly: "That's easy. The answer is C: The cuckoo."
had to make a decision and make it fast. She considered employing a reverse
strategy and giving Regis any answer except the one that her friend had given
her. And considering that her friend was a blonde, that would seem to be the
logical thing to do. On the other hand - the blonde had responded with such
confidence, such certitude, that the contestant could not help but be persuaded.
"I need an
answer," said Regis.
Crossing her fingers,
the contestant said, "C: The cuckoo."
your final answer?" asked Regis.
is my final answer."
Two seconds later,
Regis said, "That answer is ... absolutely correct!! You are now a millionaire!"
Three days later,
the contestant hosted a party for her family and friends including the blonde
who had helped her win the million dollars.
just do not know how to thank you," said the contestant. "How did
you happen to know the right answer?"
on," said the blonde. "Everybody knows that cuckoos don't build nests.
They live in clocks."
+ Dumb reasons we hold losing stocks. Click
+ How my private equity fund is doing. Click
+ Blackstone private equity funds. Click
+ Manhattan Pharmaceuticals: Click
+ NovaDel Biosciences appeals. Click
+ Hana Biosciences appeals. Click
+ All turned on by biotech. Click
+ Steve Jobs Commencement Address. The text is available:
Click here. The full audio is available. Click
+ The March of the Penguins, an exquisite movie. Click
+ When to sell stocks. Click
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
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