July 2, 2010

The Macro Trumps All Else


When I read Security Analysis, the investment bible by Graham and Dodd, I am transported to a past era when investment life was easier. You could focus your energies on finding companies trading at less than fair value. You focused on the balance sheet and the income statement. The economy was static. It grew a few percent a year and economic life was rather uneventful. ... Read More
Categories: Comments On Events
Positions Mentioned:
June 28, 2010

Index Fund Shopping Day


Billions of dollars are invested in index funds. The index funds follow strict guidelines on what companies can and cannot be included in the index. These funds are rebalanced from time to time. When the guidelines say it’s time to sell—they sell. Index funds have grown to be so large that they move markets when they need to get out. It’s mechanical and sometimes ... Read More
Categories: Investments
Positions Mentioned:
June 23, 2010

Position Updates (June 23, 2010)


Every once in a while, it is useful to go over what has changed amongst the positions I have mentioned. I want to make one thing clear. This is a diary of my investing. This isn’t a list of recommendations for playing along at home. These are not recommendations to do anything. AXM.ax I have nothing to add. To the best of my knowlege, ... Read More
Categories: Investments
Positions Mentioned:
June 19, 2010

This Changes Things…


On thursday, I sat and watched the congressional grilling of BP (BP: NYSE) CEO Tony Hayward. Is anyone else embarrassed for everyone involved? I’ll admit that I know nothing about sub-sea cement bonding or fluid dynamics, but at least I don’t go on TV and pretend that I do. Did all dozen congressmen read the same cliff notes on the way into the hearing? ... Read More
Categories: Comments On Events
Positions Mentioned:
June 17, 2010

What Did I Miss?


It’s great to finally be home. After more than a month on the road, it’s time to get back and do some laundry. Travel is great. It lets you see so many things. You can take your mind off the details and get some deep thinking done. The downside is that you can get horribly behind on world events. While you can get the ... Read More
Categories: Comments On Events
Positions Mentioned:
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