Startup Boom
Forget the twentysomethings who dominated the dotcom era: Today, most company founders are between the ages of 55 and 64.
Tuesday, April 27, 2010
Wednesday, April 21, 2010
When it is Raining Gold Reach for a Bucket not a Thimble
21 best money tips ever - Listen to what this wise man has to say (14) - Money Magazine
Every year Warren Buffett shares his wisdom -- for free -- when he posts his shareholder letter at berkshirehathaway.com. Here are five lessons from his 2010 missive:
Fear is your friend.
The past two years were an "ideal period" for value-minded investors. For example, Buffett managed to scoop up bargains ranging from municipal bonds to securities of Goldman Sachs, GE, and others. "When it's raining gold," he writes, "reach for a bucket, not a thimble."
Focus on the (really) long term.
Buffett notes the investments that he and partner Charlie Munger prefer are "businesses whose profit picture for decades to come seems reasonably predictable." Not the next two months or quarters or years, mind you. Decades.
Stick with what you know.
Against the advice of the firm's managers, Buffett pushed Geico -- the home and auto insurer that Berkshire owns -- into the crowded credit card business several years ago. Geico bailed out in 2009, losing about $50 million in all. The moral: If you don't understand that commodity ETF your pal is bragging about, pass on it.
Maintain a cushion.
While firms were fighting for their lives in the credit crisis, Berkshire kept doing deals. Why? Because Buffett keeps about $20 billion in cash on hand. This reserve is earning "a pittance," he says. "But we sleep well." A reserve will help you sleep better too, especially as you near retirement.
The buck stops with you.
Buffett oversees virtually all derivatives contracts on the company's books. "If Berkshire ever gets in trouble, it will be my fault." You need to adopt the same attitude. Whether you go it alone or work with an adviser, understand the level of risk you're assuming. If something goes wrong, you'll suffer the consequences.
Every year Warren Buffett shares his wisdom -- for free -- when he posts his shareholder letter at berkshirehathaway.com. Here are five lessons from his 2010 missive:
Fear is your friend.
The past two years were an "ideal period" for value-minded investors. For example, Buffett managed to scoop up bargains ranging from municipal bonds to securities of Goldman Sachs, GE, and others. "When it's raining gold," he writes, "reach for a bucket, not a thimble."
Focus on the (really) long term.
Buffett notes the investments that he and partner Charlie Munger prefer are "businesses whose profit picture for decades to come seems reasonably predictable." Not the next two months or quarters or years, mind you. Decades.
Stick with what you know.
Against the advice of the firm's managers, Buffett pushed Geico -- the home and auto insurer that Berkshire owns -- into the crowded credit card business several years ago. Geico bailed out in 2009, losing about $50 million in all. The moral: If you don't understand that commodity ETF your pal is bragging about, pass on it.
Maintain a cushion.
While firms were fighting for their lives in the credit crisis, Berkshire kept doing deals. Why? Because Buffett keeps about $20 billion in cash on hand. This reserve is earning "a pittance," he says. "But we sleep well." A reserve will help you sleep better too, especially as you near retirement.
The buck stops with you.
Buffett oversees virtually all derivatives contracts on the company's books. "If Berkshire ever gets in trouble, it will be my fault." You need to adopt the same attitude. Whether you go it alone or work with an adviser, understand the level of risk you're assuming. If something goes wrong, you'll suffer the consequences.
Thursday, February 25, 2010
10 Cities for Real Estate Steals - US News and World Report
10 Cities for Real Estate Steals - US News and World Report: "7. Fayetteville, N.C.: The housing market in the military town of Fayetteville, N.C., also successfully avoided wild price swings that devastated other parts of the country. Rather than surging, home prices remained largely flat for most of the previous decade. Today, house prices in Fayetteville remain undervalued when compared with longer-term averages. The area's price-to-income ratio dropped to 1.23 through the third quarter of 2009, which is notably lower than its average ratio of 1.52 for the 15 years ending in 2003. Moody's Economy.com expects home prices in Fayetteville to bottom out in 2010, before moving slightly higher in subsequent years."
Tuesday, February 16, 2010
Architecture - WSJ.com
Architecture - WSJ.com
Mr. Ban keeps his practice small so he can focus on quality.
"Sometimes working for the privileged makes me tired because they are very demanding. I'm now working in Italy where there was an earthquake. The orchestra has nowhere to play so I decided to make a temporary concert hall."
Mr. Ban keeps his practice small so he can focus on quality.
"Sometimes working for the privileged makes me tired because they are very demanding. I'm now working in Italy where there was an earthquake. The orchestra has nowhere to play so I decided to make a temporary concert hall."
Saturday, January 30, 2010
Real-Estate Cap Rates Rise - WSJ.com
Real-Estate Cap Rates Rise - WSJ.com: "Capitalization rates, a calculation real-estate investors use to measure the annual return of income-producing properties, continue to rise. The average cap rate for office properties in central business districts jumped to 8.8% in December from 8.56% in November. The December number was the highest rate for that category since May 2003. Meanwhile, average cap rates for apartment buildings was 7.36% in December, up from 7.09% in November. The cap rate is rental income in the first year of ownership divided by the purchase price."
Wednesday, January 13, 2010
BofA Profits from CRE
BofA's Secret of Success: Real-Estate Banking - WSJ.com
Who knew? Certainly not the longsuffering shareholders who saw both their asset values and dividends evaporate last year.
Bank of America is a lead lender on $43 billion in outstanding credit facilities to 53 different real-estate investment trusts, or REITs, more than any other bank, according to SNL Financial Inc.
Who knew? Certainly not the longsuffering shareholders who saw both their asset values and dividends evaporate last year.
Bank of America is a lead lender on $43 billion in outstanding credit facilities to 53 different real-estate investment trusts, or REITs, more than any other bank, according to SNL Financial Inc.
Monday, January 04, 2010
Hate The REIT, Love The Return - Forbes.com
Hate The REIT, Love The Return - Forbes.com: "The typical S&P 500 company borrows about a quarter for every dollar in equity. REITs borrow a dollar for each dollar in equity, roughly doubling losses and gains so that a 40% decline becomes a dangerous 80% swoon and leverage in the industry has been growing for years. (Compare that with the typical home buyer's leverage of four dollars for every one dollar down and it's easy to see why foreclosures are epidemic.)"
Saturday, January 02, 2010
Subscribe to:
Posts (Atom)
