Words from the Oracle

I recently watched a talk by oracle of Omaha - Warren Buffet. There are some incredible points made, and to be honest it's really shaken my world view a little bit. It's not necessarily that I've never heard or read about his view of the world, in particular the financial world, but there's something about hearing it from the man himself.

While I'll continue to ponder what he says, I feel it's important to note some of the points down for now.

1. Don't risk what can't afford to lose for a reward that will not make you any better, i.e. leveraged options plays for me.

2. Sigma 6 and 7 events do happen, i.e. LTCM.

3. Even the smartest people - geniuses - make mistakes, i.e. LTCM.

4. Buy what you know and understand. If you can't tell what will happen to a company in 10 years, don't bother buy it.

5. Buy businesses that you won't have to get a quote on if the exchanges went down for 5 years because they're great companies, not tickers, i.e. Coke (and not KO!).

6. Only Wall Street makes money from activity, individuals make money from holding.

7. Don't take a job for the sake of building your resume; work in a job you would if you were independently wealthy.

Enjoy and keep tinkering.

You can watch the video here.

Random

She tells me she knows when I don't write,
I chew gum because it's just right,
tasty and minty,
it's all a little dingy.


.... My attempt at creating poetry, or rap, I'm not too sure.

The markets are on fire,
I'm a little dire,
But I certainly ain't no liar.

Alright, that's all.

Hello SB: Initial thoughts

As many of my most devoted readers may know, I recently moved to the South Bend, IN area from DC. I'd like to take a few minutes to capture my initial thoughts of the place. Contrary to most moves, I had never been to the SB area before, so it was quite interesting to drive in and know this would be it, at least in the short-run.

My first stop was the mall. I generally think a mall in any city is one good way get a feel for the place. What a cultural difference! It was shocking and almost seemed as though I'd migrated to a different country. I was surrounded by mothers in their early 30s, at the latest, walking with several of their children. I realized I had lost touch of the family concept since moving to DC, where having one child in your late thirty's and early forties is a huge deal. Here in SB, having kids is a welcomed way of life. In DC, having kids is almost something that is put off until the most perfect and convenient time, as one pursues their career aspirations. While I do not condemn the DC way of life nor condone the former, it's good to know that people are happy once they have children and that life for parents does not end when that happens - a seemingly popular belief amongst the night-hawks in the capital.

Next, I took a quick stroll around the city, or I tried. I was a little disappointed with the city's overall condition. The infrastructure, particularly the roads, seemed rather old and run-down as did a lot of the city's homes and buildings. I'd always heard that due to outsourcing of many industrial jobs, many in this area were left unemployed over the years. If that is true, it is certainly visible.

A quick ride into Notre Dame's campus later, though, seemed to redeem a few of the city's dilapidated qualities. While I have yet to visit the main campus, it certainly seems very lush and very well maintained.

Aside from individual instances and examples, the overall mood of the city certainly seems laid back and people seem content. Strangers are very nice to each other and sales people in the stores are exceptionally helpful, at least compared to DC. The lack of compactness is also noteworthy for this former DC-area resident. Most of the major stores are large square boxes spread out over several acres, with lots and lots of vacant parking spaces.

This will certainly be a change from the bustling and crowded life I lived for the last 2 years. The pace will be slower, reasons for a heart attack will decrease, and hopefully I'll grow to be a better blogger!

And, on a final note, everyone seems to wear 'ND' attire in some form or another. Go Irish!

American Dream

All work no play may have made Jack a dull boy
But all work no God has left Jack with a lost soul
But he's moving on full steam
He's chasing the American dream
And he's gonna give his family finer things

“Not this time son I've no time to waste
Maybe tomorrow we'll have time to play”
And then he slips into his new BMW
And drives farther and farther and farther away

Cause he works all day and tries to sleep at night
He says things will get better;
Better in time

[Chorus]
So he works and he builds with his own two hands
And he pours all he has in a castle made with sand
But the wind and the rain are comin' crashing in
Time will tell just how long his kingdom stands
His kingdom stands

Well his American Dream is beginning to seem
More and more like a nightmare
With every passing day
"Daddy, can you come to my game?"
"Oh Baby, please don't work late."
Another wasted weekend
And they are slipping away

'Cause he works all day and lies awake at night
He tells them things are getting better
Just take a little more time

[Chorus]
So he works and he builds with his own two hands
And he pours all he has in a castle made with sand
But the wind and the rain are comin' crashing in
Time will tell just how long his kingdom stands
His kingdom stands

He used to say, "Whoever dies with the most toys wins"
But if he loses his soul, what has he gained in the end
I'll take a shack on the rock
Over a castle in the sand

Now he works all day and cries alone at night
It's not getting any better
Looks like he's running out of time

[Chorus]
'Cause he worked and he built with his own two hands
And he poured all he had in a castle made with sand
But the wind and the rain are coming crashing in
Time will tell just how long his kingdom stands
His kingdom stands

All they really wanted was you
All they really wanted was you
All they really wanted was you
[Fading]was you

-- Casting Crowns

Want to be a trader?

Then you better think and act like one. Learn more here.

Want to see Wellington, NZ?

Check out traffic in major cities around the world, in real-time, and free!

http://www.trafficland.com/

This is an incredible concept. Do check it out at some point. The website has live camera feeds in various cities around the world and you can click on available locations to check out the action at the time! Super awesome stuff.

Getting There

Well the sun sets in the west
But as fast as you go, how would you know
You're a busy boy, I guess
Who just wants the gold at the end of the road
Think of all you miss
Passing through like this

You want an answer as soon as you say a prayer
You want to land the moment you're in the air
Baby the living is all in the getting there

Don't be the first in every line
Now and then you can be at the end
'Cause there's only so much time
And you can't get back every minute you spend
You're not even sure
What you're running for

You want an answer as soon as you say a prayer
You want to land the moment you're in the air
Baby the living is all in the getting there

Think of all you miss
Passing through like this

You want an answer as soon as you say a prayer
You want to land the moment you're in the air
Baby the living is all in the getting there

The living is all in the getting there
Getting there

-- Terri Clark

"Spread love everywhere you go: first of all in your own house. Give love to your children, to your wife or husband, to a next door neighbor... Let no one ever come to you without leaving better and happier. Be the living expression of God's kindness; kindness in your face, kindness in your eyes, kindness in your smile, kindness in your warm greeting."

- Blessed Mother Teresa of Calcutta

A simple love

Understand this, my friend, and you'll have understood more than most:

He loves you, forgives you, and accepts you just as He made you.

With arms wide open, He showed you His love. Now, He awaits to embrace you with the same open arms. It is your turn to respond. So, go forth, go towards those wide open arms. I can hear Him call you, go ahead.

Our Father...

Our Father, who art in Lawrence,
Hallowed by thy game.

Thy bracket come,
Thy upset will be done, in Syracuse as it is in Allen Field House.

Give us this day our deserved game,
and forgive us our turnovers,
as we forgive Roy who double-crossed against us.

And lead us not into defeat,
but deliver us from East Coast bias.

For Kansas is the basketball kingdom,
And the tradition,
And the glory,
For ever and ever.

Amen!

What should I do with my life?

The answer lies here.

This is an incredible article that I think should be mandatory reading for everyone at some stage of their life.

I hate everything

He was sitting there beside me
Throwin' doubles down when he ordered up his third one
He looked around, then he looked at me
And said I do believe I'll have one more.
He said I hate this bar and I hate to drink,
But on second thought, tonight I think I hate everything.

Then he opened up his billfold and threw a 20 down
And a faded photograph fell out and hit the ground
And I picked it up he said Thank ya bud.
I put it in his hand, He said I probably oughta throw
This one away, 'cause she's the reason I feel this way,
well, I hate everything.

I hate my job, and I hate my life.
And if it werent for my two kids, I'd hate my ex-wife.
I know I should move on and try to start again,
But I just can't get over her leaving me for him.
Then he shook his head and looked down at his ring,
And said I hate everything.

He said, That one bedroom apartment where I get my mail,
Is really not a home, it's more like a jail,
With a swimming pool and a parking lot view. Man, it's just great!

I hate summer, winter, fall, and spring,
Red and yellow, purple, blue and green.
I hate everything.

I hate my job, and I hate my life.
And if it werent for my two kids, I'd hate my ex-wife.
I know I should move on and try to start again,
But I just can't get over her leaving me for him.
Then he shook his head and looked down at his ring,
And said I hate everything.

So I pulled out my phone and I called my house
I said Babe, I'm coming home we're gonna work this out.
I paid for his drinks and I told him Thanks, Thanks for everything

--George Strait

"To your Mercy, O Lord, I entrust my past. My present, to your Love, and my future, to your Providence." ~ St. Padre Pio. Taken from Adoro te Devote

Income Inequality: Why you should care

I recently came across a great article written by Charles Wheelan, PhD, Why Income Inequality Matters. I urge you to read it.

Wheelan compares the poverty he recently experienced in Brazil to the $50 million bonuses Wall Street paid out recently. Some fine point in the article are:

1. The income inequality in America has increased between 1970 and 2005 as measured by the Gini coefficient - an index that measures income inequality across nations, where 0 represents perfect equality and 1 represents absolute inequality. The U.S. score jumped from 0.39 to 0.47 between 970 and 2005.

While one can argue about the merits of the coefficient, it would be a useless exercise as this number - while not perfect - is widely accepted as a good measure of income inequality amongst those in academia. Moreover, if there are any other measures that you deem better than this one, please let me know.

2. Our sense of well-being is determined more by our relative wealth than by our absolute wealth. In other words, we care less about how much money we have than we do about how much money we have relative to everyone else. In a fascinating survey, Cornell economist Robert Frank found that a majority of Americans would prefer to earn $100,000 while everyone else earns $85,000, rather than earning $110,000 while everyone else earns $200,000. (Directly quoted from Wheelan).

3. Although the "tournament effect" (i.e. higher salaries not only motivate those who receive them, but also those who hope to receive them) provides a good argument for the rags-to-riches story, many nations such as Brazil, do not have the infrastructural mechanisms to support such paths. In so doing, then, illicit behavior and activities may be encouraged as all hope to share the pie is lost.

A fascinating article, one I strongly encourage you to look at.

Merry 2007!

And so ends the Christmas break, New Year's celebration and a host of other parties. So long 2006 - you brought times of great joy, fascinating challenges, deep sorrow, and even mystery.

Most of all, 2006, you created a historic year for the world's equity indices. I applaud your hard work and thank you for it. As for the rest of us - we were the people who made 2006 what it was - according to Time magazine. We, the people, were Time's Person of the Year. Yay us!

To all my readers: may you have a superb 2007; may it bring you great joys you have not imagined, love you have always wanted, and wisdom you have always lacked!

Merry Christmas!

Have a Merry Christmas my dear friends!

An empty luggage rack

I bought a lottery ticket after several months. I had the feeling today - I knew I was going to win, something at least. So, on my walk back home this evening I purchased a Mega Millions ticket. The winning jackpot: $40M.

Well, here are the results: 9, 32, 37, 42, 48 Mega Ball = 7
My numbers: 1, 8, 16, 20, 46, Mega Ball = 14

In other words, I did not win... a few bucks. I must say, though, that the entertainment of waiting for the winning numbers was worth the cost. By the way, did you know that 50% of the revenue goes to winners, 35% goes to fund government interests in participating states, and 15% is commission for the sellers.

Ah, but what do I care! After all, I ain't never seen a hearse, with a luggage rack.

Bragging Rights

About a year ago I blogged about creating technology to create picture searches, i.e. instead of words, search using pictures. See the blog titled "Google This: A Picture" written on Nov 8, 2005.

Somebody listened and now there's a company doing just that - read it here.

Or perhaps I just thought about it after someone else...

Some days I really wish I knew how to program - we'd be at Internet 7.7 by now!

Visit her!

I feel the need to advertise for this God-granted talent:

www.rsjames.com

Brian Littrell and Rebecca St. James