How to Avoid Investment Frauds like Madoff and Bayou?

Avoiding 99% of frauds like Madoff and Bayou is pretty easy if you do some basic due diligence. Madoff used itself as the administrator and custodian for its own assets. Every reputable investment fund uses 3rd-party administrators and custodians. For obvious reasons, it’s a lot harder to fake numbers if a 3rd-party is holding your … [Read more…]

Julian Robertson Interview on CNBC

-”This is a horror show world-wide” -U.S. now is like Japan in 1989, only worse. U.S. could see Japan-like collapse -He is still “very bearish.” “We have not solved this problem” -He hopes Congress will just pass the good/bad bank plan and then stop. The plan is crucial, however all these trillions of dollars of … [Read more…]

George Soros 2008 Investment Year

In an article in FT on January 28, 2009, George Soros outlined how his 2008 investment year went. -Problems facing Obama is even greater than FDR. Total credit outstanding was 160% of GDP in 1929 going to 260% in 1932. We entered the crash in 2008 at 365%, which he thinks will go to 500% … [Read more…]

John Paulson 2008 Year End Report

-Their largest fund, Paulson Advantage Plus, was up 37.6% net vs. SP500 -36.9% -They aggressively added to Anheuser Busch position in October 2008 becoming the largest shareholder as the deal spread blew out on InBev’s $70 cash offer. When it closed, they made the largest profit on a spread deal in their history -Their merger … [Read more…]

Dr. Ari Kiev on CNBC

Dr. Kiev spent 16 years working at SAC to help their traders perform better. Trade without Fear -Record emotions in a diary. Be willing to share feelings with others -Don’t be too macho. Keep impulsive urges in check -Practice meditation or yoga on a daily basis. Maintain your calm when under duress -Make a plan. … [Read more…]

Jim Chanos Interview

Jim Chanos, the best short-seller of our time, was interviewed for his current thoughts by FT. -Very bearish on infrastructure buildout in the world. China, Middle East. Long way to go on the down-side -Bad news for steel and cement companies -They look to where they can analyze long lead times, plant construction, etc. They … [Read more…]

Buffett’s Holy Grail of Investing

Notes from a speech by Alice Schroeder at Darden Value Investing Conference 2008. This is so much better than her mass audience oriented book for insights on how Buffett invests. -So much of Warren’s success has come from training himself into good habits. Aristotle said, “We are what we repeatedly do.” Excellence is not an … [Read more…]