May 20, 2010

My Currency Epiphany


I’m in Gundagai New South Wales at a charming café having buttered toast with canned spaghetti on top. I’m told it’s an Aussie delicacy. I’ve driven nearly 500 km from Sydney and have already had my first epiphany. It is said that generals always prepare to fight the last war. This cannot be truer when it comes to investing. For decades, currencies have fluctuated ... Read More
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May 16, 2010

Escaping The Next Data Point…


I am writing from Sydney Australia. Sometimes you need to just get away from it all and take some time to think things through. I’m an investor—not a trader. I am not trying to capture the next 3% move. Let someone else figure that out. PPI figures, CPI numbers, employment (or unemployment), bailouts and wild market gyrations, what does it all mean? Should I ... Read More
Categories: General
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May 10, 2010

Multiple Expansion


I look at smaller companies because they can offer much better upside than larger companies. Part of this upside is the result of rapid earnings growth. Small companies can be more nimble and efficient than larger companies.  However, earnings growth isn’t always where you make money.  Often, you can make just as much money on multiple expansion. What is multiple expansion?  It refers to ... Read More
Categories: General
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May 6, 2010

On Getting Splattered…


There are good days, there are bad days and there are awful days. Today was a debacle. Almost everything our fund owns was down. Some positions were down more than ten percent. Even worse, we stopped out on a number of trading positions. It was a mess. Our portfolio looks like a crime scene—all red. My dad tells me that some days you’re the ... Read More
Categories: General
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April 28, 2010

Designed To Fail…


I’m sitting here watching CNBC fill airtime with stories of how Goldman Sachs created securities that were designed to fail. We are supposed to feel sorry for the wealthy and financially savvy institutional investors who bought these things without doing their due diligence. This was a closed game that only a few very large investors were even invited to participate in. If you don’t ... Read More
Categories: Investments
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