Archive for the ‘Investing’ Category
Investing Illusions and Delusions
The latest issue of my company’s newsletter, Chiefist Positions, went out today. In it, we examine “investing illusions and delusions,” through the lens of two powerful and outstanding books:
- Thinking, Fast and Slow, by Daniel Kahneman
- The Halo Effect, by Phil Rosenzweig
You can find Kahneman’s book on Amazon or in most bookstores. You can find Rosenzweig’s book in used bookstores, Amazon marketplace, Alibris.com, Abebooks.com or Bookfinder.com. With shipping, it will cost you about $6, which will be the best $6 you spend all year. Get them both, and read them.
GE’s Financial Situation
Now The Economist examines Secretary Paulson’s conversation with Jeffrey Immelt in September 2008.
Credit Unions Act Like Lottery to Drive Savings
A friend sent this article to me about some Michigan credit unions which have begun a creative savings program. The article also contains some startling statistics about saving practices among low-income individuals. Many of them believe that playing the lottery “is the most practical way” to save. As another way to look at it, many of these low-income people do not pay income tax (on a net basis), but they contribute to state finances through the lottery. This cancels out the tax benefit they receive; they de facto pay taxes. If they simply paid taxes, and the states did not run a lottery, I wonder, would state tax receipts decline?
Immelt on GE’s Financial Situation
If General Electric CEO Jeffrey Immelt did, in fact, act as Henry Paulson’s book alleges, he and the company could face some uncomfortable discussions with regulators and in court. I have stated on this blog before that Mr. Immelt has enjoyed more than eight years to prove he can succeed as chief executive. He has done little good for GE, either financially or in the public’s perception. At what point does he recognize this, or does the board decide a change makes sense? (Full disclosure: I am a GE shareholder.)
Revised: About Capitolism
I have revised the About page, to more fully explain what Capitolism is, er, about. I have elucidated upon the goals of Capitolism and the issues in view. As I mentioned in a previous post, I am in the process of drafting a strategic plan for Capitolism in 2010, and will share that on the blog when I complete the plan.
About Capitolism:
Capitolism addresses, explores and focuses on issues concerning business, trade, leadership, management, economics and small business. Issues at the intersection of these topics will attract Capitolism’s particular interest. In probing these matters, Capitolism will rely on lessons from philosophy, history, literature, current events, great speeches, newspapers, magazines, sports, academia, science, theology, military history, poetry and the authors’ own experiences, as appropriate. The aims of Capitolism are threefold:
1. To explore challenging and even subterranean issues pertaining to business, economics and leadership
2. To offer a hopefully interesting and unique perspective on these issues to readers
3. To create a venue for wide-ranging, thoughtful, penetrating discussion on these issues
You, the reader, will judge how well or poorly Capitolism achieves these aims. We encourage your comments, whether you agree, disagree or violently disagree with our writings.
Review: Investment Biker
A few years ago, I read Adventure Capitalist by Jim Rogers. That book so intrigued me that I wanted to read his first book, Investment Biker, about his 1990 to 1992 travel across the globe. Other books intervened, and I only just finished reading this book. Even though it relates events from two decades ago, I found it enlightening, punchy and fascinating. Read the rest of this entry »
John Mauldin’s Weekly e-Newsletter
John Mauldin’s newsletter is a must-read every week. This week, he muses on what will happen when the Fed halts its quantitative easing. You can subscribe to his newsletter here.
Four for Thursday — Articles I’ve Read and You Should Too
Interview with Bill Gross, by John Curran.
