Along with stocks we are also seeing a plunge in housing prices. The mortgage payment/rent equation is still wacko (it should be about 1-1) but 3 weeks ago I decided to place a tender offer on an apartment that I liked in Wellington. With tenders you place a binding bid into a box, and when …
Category Archives: Investing
Invest now – but only in quality businesses
Linked in just raised US$76m from some strategic investors, while over in Western Australia Tanami Gold grabbed AU$12m from almost all exisiting shareholders. In Canada vBrick systems got $11.9m – they make enterprise video systems, and managed to get Menlo Ventures and Morgan Stanley on board, amongst others. China is also showing life, with Intel …
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Saving New Zealand from the crisis
Mark Welden and David Skilling went to Davos, got back to NZ, clearly talked a lot over beers and came up with what I can only term a business first over-reaction to the current global gyrations. Good on them for the doing this though, and for the intention which they are following through of starting …
Portfolio judgement month hits hard
It’s been a rough ride for everyone on the equity markets. I really have not followed my own advice and got out of my short positions far too early and went hard into Apple long options. I’m too scared to look at the money I left on the table by existing the Fannae Mae short …
Three business ideas: 1: Baby Business Bank
It’s easy to take advantage of today’s doom and gloom, but you need a stiff will and plenty of freed up capital. Here is the first of three ideas. 1: Baby Business Bank It’s hard enough these days to get finance for a house – but it has always been hard to get bank finance …
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Economic Judgement Day: 2008 edition
Markets have them all the time, and it is finally here – judgment day. The day when lousy economics and fundamentals get confronted with harsh reality and bright lights. Prices plummet, businesses fail and jobs and economies fall. My portfolio was hedged against this day – indeed it even went up, though not to the …
Time to return
From beautiful Cape Leveque, which is North is Broome, I woke in my tent to the dawn light. After visiting a local community, it is time to return. The day before I fielded several phone calls from companies I am involved with, received the final investment documents and call for cash for a new one, …
Top 10 things to change at eBay
I’d love to get into the numbers in the recent changes to eBay, but it is too hard on this iPhone. But regardless, here are my top 10 suggestions for change at eBay: 1: allow google checkout and integrate it. It will provide a clean payment system (unlike paypal) and will force paypal to get …
Back from judgement day. Whew.
A little while back my US portfolio got whacked – it was judgment day. But while the volatility of the US stock market took its toll, the positions I held are now coming through, and the portfolio is essentially back to where it was a few weeks ago. That’s when the Citibank short position and …
If nobody owns your mortgage note then you are in luck
It seemed like a great idea at the time. Sign folk up to mortgages, sell the mortgages to another financial player who then bundles the mortgage with thousands of others and sells various risk based slices. It failed in three different ways – two of which we know about, but one which is just emerging. …
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Portfolio Judgement Day
I was long on Apple when it went up, shorted Citigroup (Citibank) as it went down, and was recovering my portfolio YTD returns to the heights of a month ago. Then came judgement day. Judgement days do come in stock markets, and more often than people think. The SEC changed the rules, and banned naked …
Banks? Real estate? the worst is yet to come
a Little bank story for kids, courtesy of the WSJ, and as told to writer Brian M Carney by billionaire and Private Equity pioneer Ted Forstmann. Once upon a time, when credit conditions and the costs of borrowing money were normal, the bank opened at 9:00 a.m. and closed at 5:00 p.m. For eight hours …
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Half year Portfolio update
so – am I following Baupost‘s advice in my own investments? I try to. It pays to be reminded again and again though, as like most people investing is a very part time game for me. But I’m happy about some of my decisions, like my short position on EQR, which I regard as vastly …
The Baupost story
Imagine making over 20% a year since 1983. Safely. $10,000 invested then would be worth about $1m now, but the original investors had $27m, and they have made over 6,100% after fees. Sounds like the sort of place you’d like to put your money right? Especially as Baupost boss Seth Klarman’s mantra is “Don’t lose …
The WWDC Apple show – how it got so big
It’s the annual Steve Jobs speech at the WWDC – (Word Wide Developer Conference) on Monday morning US Pacific time. While we wait for the new iPhone, Snow Leopard and a host of other rumours, check out the history of Steve’s “just one more thing..” at his WWDC speeches. That link (do check it out) …
Lance Wiggs 