ValueInvestor

Marc Farber: Gold Will Never Fall Below $1,000 Again

As a commodity trader, saying something like that is absolutely foolish. Saying ANY given commodity will never reach a new high or new low is outrageous. We see it happen all the time.

It might take several years but gold will definitely be below $1,000, its just a matter of time.

So You Want to Run a Hedge Fund?

As a hedge fund employee I don't see how a 2% management fee is really all that big. If 100 million AUM is the target that would imply a revenue stream of $2.0 million for a year. In a level or down market, that's the company's revenue for the year and depending on the number of employees it doesn't leave much for insurance, rent, software (databases, market data quotes, MS word, excel), hardware and a myriad of other expenses. This is basically just to cover expenses, which can get quite high when a quoting system is $600+ per month, per machine or a database system is $10,000+. When you get into the billions of AUM then 2% seems high, but for small to mid-sized companies its not.

The performance/incentive fee is where the real money is. I would say 20% is high. 10% would be more appropriate IMO. Also, the SEC should pass a law stating all hedge fund managers should work as a fiduciary for all clients.

Wall Street: Dumb as It Ever Was

Well the BLS said they've overstated job growth by 800,000 jobs since 2006 and will be adjusting the numbers downward in Feb '10 by that amount.

THATS 800,000 JOBS PEOPLE. An overstatement that big reeks of government deception. I wouldn't trust a lot of the numbers they throw out.

CEOs Must Bring Investors Along for the Ride (WSJ)

To be honest, I don't think individual shareholders even give a hoot. I personally throw out my proxies because I don't think voting on my .0001% holding is gonna do much, and how am I to tell which director to boot? Do I vote against all of them, one or none?

Most shareholders are there to make a buck off the stock price, not run the company like an owner should.


On May 04 01:45 PM Mmarrkk wrote:

> A reasonable question: if shareholders don't like the actions of
> the BOD, why aren't the BOD's voted out each year when the proxies
> come around?
>
> I think the answer is that the majority of the shareholders like
> the job being done and thus, vote in approval. Hey, I hate the job
> the current POTUS is doing but there was an election! Each year,
> some of the BOD's of all of these companies go up for a vote. And
> each year, they receive a majority of the shareholders' votes. So,
> you see, the shareholders DID vote and they decided to keep the BOD's,
> the same ones you all are saying are doing a putrid job. Could it
> be that you are in the minority?

Open Letter to Quant Funds: Now's the Time to Help Maintain Orderly Markets

Charlie Munger on the Efficient Market Hypothesis:

“Now let’s talk about efficient market theory, a wonderful economic doctrine that had a long vogue in spite of the experience of Berkshire Hathaway. In fact one of the economists who won — he shared a Nobel Prize — and as he looked at Berkshire Hathaway year after year, which people would throw in his face as saying maybe the market isn’t quite as efficient as you think, he said, ‘Well, it’s a two-sigma event.’ And then he said we were a three-sigma event. And then he said we were a four-sigma event. And he finally got up to six sigmas — better to add a sigma than change a theory, just because the evidence comes in differently. "

We Had a Nice Run There, But Is the Bounce Over?

Are you one of them?


On Mar 27 11:43 PM MADE IN SOMALIA wrote:

> don't show your child on s.a. men, this site is full of pedophiles.

Cramer's Mad Money - Tricks of the Trades (11/28/08)

Has anyone seen Tropic Thunder yet? I swear Tom Cruise's character was based on Jim Cramer. He was freakin hilarious.

Monthly Performance For Oil, Dollar and the Dow

Well, it certainly jumped up $4 at the close. If the CFTC is going to investigate futures manipulation they should start looking here. The CL price jumped $4 in the last few minutes of trading. And it was a month-end to boot, making the case for manipulation even greater.

I remember a few months ago where this happened at the close every day for 2 weeks straight in the coffee market. The CFTC is asleep at the switch.

Buffett Warned Us in 2003

Apppro, give me a break, and Warren too. Whats he supposed to do? Buy these terrible companies that have shot themselves in the foot just so he can write the purchase off when the dust settles. Thats the most ridiculous thing I've ever heard.

He has a responsibility to Berkshire's shareholders and if he "helped" out like you're saying he would have done nothing but harm them.

Why Core Inflation?

The US CPI is produced by the US Bureau of Labor Statistics, which uses the CPI to base increases to government wages and pensions. Its in their invested interest to fudge the numbers and keep the CPI as low as possible.

Even the "seasonally adjustments" they use have increased in the last year to make inflation seem a lot lower than reality. Real inflation is probably 8-10% now. Welcome back to the late 70's people.

The Top 5 Looming Financial Issues

User 233663,

US Energy independence is an election rhetoric. Do you really think you can rid the US of $10 million barrels of oil a day? It would take many decades for that to happen. You would need about 1000 nuclear plants built and every car to switch to electric or some other renewable type of fuel. Completely improbable.

Why the Fed Should Leave Interest Rates Unchanged

The DOW is a joke of an index. Whenever a company is in poor shape they remove it from the index and add a good one. Its totally rigged.

Only the S&P 500 or 1000 are legitimate indexes IMO.