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Articles tagged with: Warren Buffett

Hedge Funds, Investing, Leadership, Trading »

[24 Nov 2008 | One Comment | 2,920 views]
Thick Turbid Transparency

You have to like Hank Paulson. The Treasury Secretary grew up on a farm in Illinois. Many leaders in American history learned the value of hard work while planting seed and harvesting crop. George Washington was a farmer. Thomas Jefferson was a farmer and envisioned our country as a republic of farmers with a strictly limited federal government. That was when agriculture dominated the economic composition of the United States. Since then, the original federation of thirteen states has grown to fifty while the percentage of the citizenry employed in …

Entrepreneurship, Features, Hedge Funds, Investing, Latticework, Randomness, Startups, Technology »

[1 Nov 2008 | 8 Comments | 4,597 views]
Thriving in Tough Times

I don’t get things right as much as I’d like when it comes to the market but my Latticework Linkfest back in late February was spot on:
In times of recession, when unemployment is high, the unemployed go back to school to add marketable skills and increase future earnings power. The leading companies in for-profit education include Strayer Education (STRA), DeVry (DV), ITT Educational Services (ESI), Career Education Corporation (CECO), Capella Education (CPLA), Corinthian Colleges (COCO), and industry giant Apollo Group (APOL). Apollo operates the ubiquitous University of Phoenix campuses. This …

Hedge Funds, Investing, Trading »

[26 Oct 2008 | 4 Comments | 3,955 views]
Long Term Capital Mismanagement

Henry Paulson, the Secretary of the U.S. Department of Treasury, recently announced a plan to purchase equity stakes in large public financial institutions to stem the tide of bankruptcies and failures brought on by the credit crisis. By buying shares in big banks, the government is essentially providing much needed cash to stabilize the companies and provide for some liquidity and credit stimulus. This is just one of many actions announced in an attempt to diffuse the credit crisis. Equally busy are Ben Bernanke and the Federal Reserve. Paulson swears …

Entertainment, Investing, Sports »

[24 Oct 2008 | No Comment | 24,313 views]
Dominance Postponed

It was another suspenseful postseason for my precious Boston Red Sox. Although the fat lady has shattered the Nation’s dreams and any glass in her vicinity, the Fenway Faithful were treated to another epic battle. You just cannot say that this team is boring. Even I was surprised that they tied the series after being down 3-to-1 to force the seventh game! The Tampa Bay Rays played well and showed how formidable a force young hunger can be. They won handily, but the last game could’ve been won by either …

Business, Investing, Leadership, Technology, Trading »

[9 Oct 2008 | 13 Comments | 2,944 views]
When CEOs Become the Soul of a Company

Have you ever wondered what could happen to the stock price of Berkshire Hathaway (BRK-A) when its amazing CEO, Warren Buffett, is no longer able to captain the ship or passes away? This topic has swirled atop investors’ minds for at least a few years now and consistently keeps getting addressed by the Oracle of Omaha himself during Berkshire’s annual shareholder meetings. Last year, I sent my wife Cynthia to the shareholders’ meeting and she reported that the continuity or succession topic was one of the most widely talked about.
Let’s …

Business, Features, Investing, Latticework, Randomness, Strategy, Venture Capital »

[1 Oct 2008 | 12 Comments | 9,449 views]
The Pareto Principle for Careers

My good friend Dan and I were talking shop about our recent business challenges. He works for Omniture (OMTR), the leading Web analytics software company, and is one of the top sales guys there. As an aside, we were both at the University Venture Fund when I sourced our Omniture deal and we had the privilege to co-invest with Hummer Winblad Venture Partners and Scale Venture Partners in one of Utah’s shining technology successes. Every quarter, my friend handily beats his quotas and makes good money doing so. Life ought …

Business, Hedge Funds, Investing, Strategy, Trading, Video »

[23 Sep 2008 | 2 Comments | 6,137 views]

Even the mighty are falling. The last two major independent investment banks on Wall Street, Goldman Sachs (GS) and Morgan Stanley (MS), have received permission from the Federal Reserve to convert from traditional investment banks into commercial banks or bank holding companies. Plenty of ink, digital or otherwise, has been spilled about the disappearance of investment banks so I won’t dwell much on that. We’ve seen the collapse of Lehman Brothers (LEH) and Bear Stearns. Still somehow, I’m sure there were some who sentimentally held out hope that the two …

Hedge Funds, Investing, Trading, Video »

[22 Sep 2008 | One Comment | 10,239 views]
Patrick Byrne Vindicated

Patrick Byrne, CEO of Overstock.com (OSTK), was one of the lone voices sounding caution while the market was steadily marching upward to record levels. In good times when everyone in the market is making money, few will listen to the radical iconoclast in the corner warning of an impending end to the party. Contrarians are often seen as party poopers. The financial press regularly ridiculed Byrne for his passionate crusade against naked short selling. Many perceived his actions as a desperate attempt to save his own company from short sellers. …

Investing, Linkfest, Technology »

[4 May 2008 | 2 Comments | 3,416 views]
Investing Linkfest 5/4/08

The technology sector gets a big surprise with Microsoft (MSFT) announcing that it will cease to pursue the acquisition of Yahoo! (YHOO). Most analysts and market pundits expected Jerry Yang & Company would ultimately accept a deal, albeit at a higher price than Microsoft’s initial offer. Expect Yahoo! stock to take a precipitous plunge at the market open and the announcement of class action lawsuits from its larger shareholders. While this saga of two tech giants unwinds, plenty of news in the rest of the tech sector deserves attention.
The Nasdaq …

Investing, Trading »

[18 Feb 2008 | No Comment | 438 views]
Speed Traps and Value Traps

Two finance professors from UCLA and the Helsinki School of Economics released a study exploring the correlation between individuals prone to getting speeding tickets and the tendency to churn investment portfolios. They conclude that an average investor’s portfolio saw an 11 percent increase in the turnover ratio for each additional ticket received. This is a highly significant finding according to statistical methods.
A couple of possible explanations the academics propose are overconfidence and thrill seeking behavior. Although overconfidence might play a small explanatory role, they find that the trait of thrill …