cho, page-91

"Reminiscing"
AHHHHH...If only Clark Kent were around to share his words during the GFC we just had to have. His thoughts and words were appreciated [by me] on this thread.

The show must go on and I am sure if he is reading this, he would have got a kick out of the Doug Kass interview on CNBC regarding his prediction of Mr Buffett retiring in 2010. Mr Kass has been a critic of the Oracle of Omaha for a while (maybe out of sheer frustration that he just keeps performing and is so damn wealthy), but what strikes me was his comment that Buffett has now completed his canvass and theres really very little left for him to do.
Complete garbage!
Doug Kass may have profitably shorted Berkshire Hathaway stock, but he demonstrates a fundamental lack of understanding of Berkshire Hathaway and Warren Buffett.

Anyhow....

....as nothing has changed in the way we select companies for investments and the books out there which cover the material (not that they bore me, but we all know which are TOP SHELF), I have focused on the macro events over the past year and a half. I think that we all should read about the events that unfolded and recommend two books on the subject;

Too big to fail & Lords of Finance.

Never stop learning and these two brilliant books stare us down the barrel of what would and has become due to stupidity, greed and outright folly. The readings make us aware that irrationality is out there and despite similar patterns in the past - the THIS TIME IS DIFFERENT syndrome just does not cut it. It NEVER is different!

Two other important books I have been over with a fine tooth and is crucially important to read every no and again is John Kenneth Galbraith's: "A short history of financial euphoria". A classic short book that summarises past folly and panics. A must buy, hold and keep book.
Keeping with the Macro theme, get your hands on "This time is different: Eight centuries of financial folly". A great book that studies in quantum terms the causes and events of financial history.


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Australia has been let off lightly by the onslaught of the GFC. A worry I have moving forward is that our growing debt, both personal and national is at an all time high. Caution is needed moving forward. Debt/leverage is a force that works well when everything else is going well. But, can ruin in an instant.
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A great 2010 to all!