Monday, May 5, 2008
qwestions and answers
The stock market exists so that a company can sell a portion of itself in order to reinvest in its business plan and grow larger than if it had stayed private. Companies believe they are making the most money possible with their resources or they would switch to a more profitable business model. A Railroad company may think that they can make more money if they lay fiber optic cables below their tracks but, it is more likely that they can maximize profits with their expertise and experience in the logistics industry. If you do not manage an old publicly traded company, then you can shy away from business models that seem antiquated. Casinos are a great example of businesses that do not lose money.(Oil refineries and luxury brands are not too shabby either.) An undervalued stock is a stock whose market cap is below what would be offered if the whole company was bought out and went private. (That description allows you to trade at any volume; if you simply say any stock that will go higher is undervalued, you are not taking into account what might happen if you buy a lot of shares and try to unload them all at once.) If you ever wake up and hear that a stock you own was bought for more than it was trading at the previous day, that is a very good day. Hope you have a good day!
Friday, April 25, 2008
Short people short stocks the same way tall people do
I always felt if I was approved for short selling when I had no income, things would be quite different. I can't say for the better or worse though. I once tried to get a job at bear, that would have been a mess. I'm not gonna explain short selling, go to another website and come back when you are ready. The greatest short was world poker tour, they don't even deserve to capitalized on my blog. It was the biggest show on TLC, big deal. It wasn't the WSOP on ESPN. I would never invest in a poker company but at least the World Series is sort of reputable. World Poker Tour was slightly more than a TV show. They also sold a few decks of cards with their logo on it. They didn't even have an offshore gaming site. You can't invest in a fad unless the company is making the fad. Buying AAPL because of IPODs makes a lot more sense than buying a poker franchise because poker was big. Poker is to 05 what cigars were to 95. It only took a few years to realize they would rather inhale cigarettes and die than pretend cubans are less nasty than other cigars. Not everyone profits when a stock goes up. Don't forget to hedge your bets. If you like coke, buy it and short pepsi. Did I just figure out what a hedge fund does? Remember It's good to have options. Buying puts right before a crash is brilliant. You can make a fortune when people say "everyone lost money". Shorting stocks, buying puts and writing calls are all bearish moves. Anyone who was bearish during the tech downturn did well. It is like the tech boom in reverse. You just need any boom not necessarily an upward one. So remeber kids; I can beat you in poker, so you better invest well.
Sunday, April 20, 2008
Warren Buffet plays bridge like a rich little girl
I have heard that the oracle of omaha drove a lincoln continental. This man owns geico and drives around like a man that works at dairy queen. It's not really a cheap car, I t is just that it ain't all that cool. Buffet is the greatest investor of all time. Only stock to hit 6 figs ever. Richest man in the world and giving his money to bill's wife. Buffet is famous for buying stable companies like coke and gillette. He went to sleep quite content knowing that most of america would shave the next day. He has moved from touting coke to the much tastier bud light. He has explained that when he buys a stock he acts as if there is no stock market. He just asks himself if someone would pay more for it in 5-10 years. He avoided the tech boom and still made a killing on level three, years later. Made good money on qwest bonds because he realized the intrinsic value of qwest was high and bonds are the first security to collect if anything does go wrong. Buy brk.b boys and girls.
Sunday, February 17, 2008
CMG
I went to CU-Boulder. I ate Illegal Pete's burritos. they were perfect. I moved to NYC; people would line up in midtown for an inferior product( I do like chipotle). CMG the giant copy of quality. long cmg. rosex.
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