The Profitable Idea

The profitable idea involves being in the right place at the right time. A discontinuity between what was and what will be.

Wall Street?

The future is denied to those who have been cynical and calloused and self-deceiving enough to rejoice in the present ordering and are unable to grieve about the ruin toward which the status quo is headed.

Is Bank of América a Criminal Organization?

This is the article Bloomberg and The Financial Times are supposed to be writing:

http://ow.ly/1Jreif

The Validity of a Hypothesis

The only relevant test of the validity of a hypothesis is comparison of prediction with experience.--
Milton Friedman

The Black Market

The black market was a way of getting around government controls. It was a way of enabling the free market to work. It was a way of opening up, enabling people.--Milton Friedman

Protection From The Government

Many people want the government to protect the consumer. A much more urgent problem is to protect the consumer from the government.--Milton Friedman

Get Rid of the Money Center Banks

You don't have to take it from the left or the right, or even me. Take it from the Dallas Fed: "Achieving an economy relatively free from financial crises requires us to have the fortitude to break up the giant banks."

—Al Lewis is a columnist for Dow Jones

Nature Does Not Leap- Natura non facit saltus

The principle expresses the idea that natural things and properties change gradually, rather than suddenly

Natura non facit saltus (Latin for "nature does not make jumps") has been a principle of natural philosophy since at least Aristotle's time.It appears as an axiom in the works of Gottfried Leibniz (New Essays, IV, 16) and Isaac Newton, the co-inventors of the infinitesimal calculus,see Law of Continuity. It is also an essential element of Charles Darwin's treatment of natural selection in his Origin of Species.The phrase comes from Linnaeus' Philosophia Botanica.

It is also true in economics. Change is gradual and slow in economic behavior.

A Client wrote this about HP.

I used to buy HP PC’s, but no more, not professionally nor for personal use. They sent their support to India, causing their service to be aweful. They used to be #1 rated in customer support.

The last PC I bought from them had to have the motherboard replaced twice & the problems took 5 months to resolve. During this time I was dealing with multiple support techs from India, wasting hours & hours of my time. It would have been much more economical for me to have thrown my brand new computer in the trash and bought another from someone else.

Get Your Yield while You Can

Some investors still haven't figured out we are going to see interest rates at Japanese levels at the low end. Get your yield while you can.

The Solvable Problem

No matter what the financial problem it is solvable. The world is not going to end and life will go on. History is filled with financial bubbles and mankind has moved on.

Investment Performance

Our performance is so high I chuckle when I read this, but it should be remembered that we paid the price in hard work, patience and superior research.-@TylerInvestment


Buffett made a bet in 2008 with the money managers who own Protege Partners LLC. The winner will be able to donate at least $1 million in the charity of their choice at the end.
The latest results were reported first Wednesday by Fortune magazine. Buffett did not immediately respond to a message.

Buffett's chosen low-cost S&P 500 fund gained 2.08 percent in 2011 to beat the five portfolios of hedge funds Protege chose, which were down 1.86 percent.

Through four years, the hedge funds are down 5.89 percent. Buffett's index fund is down 6.27 percent.

Both sides of the wager performed poorly in the first year when the stock market collapsed in 2008. But the portfolio of hedge funds fell 23.9 percent, while the Vanguard S&P 500 index fund Buffett chose plummeted 37 percent.

Buffett has said that most investors will do better over time with a low-cost index fund than by paying steep fees to investment managers. In the past, Buffett has devoted parts of his annual letters to Berkshire shareholders to highlighting the perils of paying hefty fees.

Sent from my iPhone