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Boris Marjanovic  

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  • Gold Is Way Overrated [View article]
    "In 1913 they would have cost you $100 for all 5."

    Just like I explained in my article - over centuries gold is a pretty good inflation hedge. However, most of us don't live for hundreds of years. Our lifespans can be measured in decades. Over these more realistic periods of time, gold is way too volatile to be a reliable inflation hedge. If you bought gold in 1980 and held until today you wouldn't even have beat inflation, although you would have experienced huge volatility.

    "The same amount ($100) in the Stock market would have went to ZERO in 1929."

    The market dropped a lot, but never did it go to "zero" as you mentioned. I don't know where you are getting your information from. But when the economy recovered, the stock market performed much better than gold. In today's financial markets it's easy to hedge against, and even profit from, market crashes so owning gold is not necessary (and would actually hurt your overall performance).
    Nov 29, 2014. 02:57 PM | Likes Like |Link to Comment
  • Gold Is Way Overrated [View article]
    User 447425,

    Insurance against what exactly? In any situation you can think of, there are far better and more profitable hedging alternatives than gold.
    Nov 29, 2014. 02:34 PM | Likes Like |Link to Comment
  • Gold Is Way Overrated [View article]

    There will be no "rule of law" in the event of a "total" collapse! You can only understand this if when you've lived through it, as I have. And do you actually think "real assets" like gold will save you? Then obviously you have never experience the horrors of something like a bloody civil war... where mostly drunk and drugged-up soldiers (many of them your former neighbors) come inside your home, steal anything that has any value, and finish things up by burning your house to the ground. In a situation like this the best thing is to own a few guns and a lot of ammo!
    Nov 29, 2014. 02:30 PM | 5 Likes Like |Link to Comment
  • Gold Is Way Overrated [View article]

    Well, you could also have bought some stocks, invested in real-estate, started a business, etc. and gotten even better returns!
    Nov 29, 2014. 11:08 AM | Likes Like |Link to Comment
  • Gold Is Way Overrated [View article]

    It's a great way to preserve capital only over really long periods of time, such as centuries. Over more realistic periods of time it is way too volatile to be a reliable preservation of capital.
    Nov 28, 2014. 08:17 PM | 3 Likes Like |Link to Comment
  • Gold Is Way Overrated [View article]
    Buyandhold 2012,

    "I see the ads on TV trying to scare investors into buying gold, I laugh out loud."

    I laugh too! But selling fear is big business!
    Nov 28, 2014. 12:10 PM | 4 Likes Like |Link to Comment
  • Gold Is Way Overrated [View article]

    "I don't think of gold as an investment. Its insurance."

    Insurance against what exactly? Hyperinflation? Total financial collapse? I clearly explained that in either of these situations gold is not a very good insurance policy.
    Nov 28, 2014. 12:08 PM | 3 Likes Like |Link to Comment
  • Gold Is Way Overrated [View article]
    "You cannot use your McDonald's shares to buy a lunch at McDonald's either."

    I kind of mentioned that. All stocks will be worthless too in the event of a total collapse.
    Nov 28, 2014. 11:12 AM | 4 Likes Like |Link to Comment
  • MYOS Corp.: A Little-Known Nutrients Company In Dire Need Of Its Own Life Support, 50%+ Downside [View article]
    "Apparently myostatin is a naturally occurring regulatory protein responsible for limiting muscle growth in humans, and hence, is supposedly of some use to athletes, gym rats, and others looking to get ripped."

    A myostatin inhibitor can also help cancer patients, which for some reason you didn't mention. This company is closer to a biotech than a sports supplement company, and trades like one as can be seen from the high valuation. Shorting stocks like this is dangerous.
    Nov 25, 2014. 07:50 PM | Likes Like |Link to Comment
  • A Brief Look At 'Dual Momentum' [View article]
    A simple strategy is to go long the S&P 500 and to buy out of the money puts on it to hedge against crashes (1-2% annual cost). This strategy is safer, easier to implement, and will outperform most other strategies in the long run.
    Nov 24, 2014. 02:44 PM | Likes Like |Link to Comment
  • A Brief Look At 'Dual Momentum' [View article]
    It's kind of obvious this strategy works very well during strong bull markets. But just randomly selecting stocks within the S&P 500 Index would probably give you a similar performance. When everything is going up it's easy to make money and look smart.
    Nov 24, 2014. 11:45 AM | 1 Like Like |Link to Comment
  • The Beauty Of Shorting [View article]
    There is absolutely no beauty in shorting because it exposes you to unlimited losses.
    Nov 19, 2014. 06:03 PM | Likes Like |Link to Comment
  • Netflix Off-Balance Sheet Obligations: Concerns Are Way Overblown [View article]

    "If you believe in randomness good luck."

    If you don't believe in randomness/luck/chance than you're very foolish. Just the fact that you don't live in a war-torn country, such as Syria for example, makes you extremely lucky. Most of the things that occur in our lives are pure randomness, we have no control over them.

    "You might as well buy an ETF that follows an index and never actively manage money, because it's all just dumb luck anyway."

    Well, since over 80% of actively managed funds under-perform passive funds this is actually a good recommendation.
    Nov 18, 2014. 10:42 AM | Likes Like |Link to Comment
  • Netflix Off-Balance Sheet Obligations: Concerns Are Way Overblown [View article]

    "It just so happens that I disagree with Marjanovic and I have a pretty good track record on Netflix."

    If you pick enough stocks, eventually you will get "lucky" and pick one that happens to go up. A blind monkey could do it. If you picked 50 stocks in a row and all of them went up then I would be very impressed. But even then, given a large enough sample size of investors, someone will have a very long winning streak simply due to luck/chance/randomness.

    "I don't think the recent quarterly dip in free cash flow is truly representative of a long-term trend. I'm fairly certain Netflix CFO David Wells and CEO Reed Hastings will keep expansion at a pace in which free cash flow doesn't dip too far into the red."

    You obviously didn't read the most recent 10-Q. This is what management said about free cash flow: "We expect that free cash flow will be MATERIALLY LESS than net income while we increase our investments, particularly in original content, and we may use cash for operations and / or have negative free cash flow in future periods."

    This is a nice way of saying that free cash flow will continue deteriorating and there is not much Netflix's management can do about.
    Nov 17, 2014. 11:22 PM | 3 Likes Like |Link to Comment
  • A Properly Diversified Portfolio Includes Gold [View article]

    Just look at what's going on in Syria. For the people fighting in the war, the last thing on their minds is gold. They want shelter, food, clean water, medicine, weapons to defend themselves, etc. Anybody who has lived through a REAL crisis, such as a civil war, knows first hand how useless gold truly is. I was born in a country that went through a horrible war and have seen this with my own eyes. The keyboard-charlatans on here who believe that gold will save them when things get really bad are delusional idiots.
    Nov 13, 2014. 11:16 AM | 2 Likes Like |Link to Comment