Think-About-It

Is Smart Money Betting on Inflation?

There is no consensus that inflation is on its way (I believe it is and have invested for it and I know I'm early). Many investors believe deflation will be with us for a while as the recession lingers and credit remains constricted. Therefore, investing for inflation now is NOT investing with the herd. If the masses were convinced of inflation we would be experience it right now.

Bigmoney asked: "Where will inflation show up" My guess is that it will be all around you but more-so in non-durable goods such as Oil, agriculture and precious metals. Yes, healthcare and education will continue growing faster than the CPI but not sure how to invest in those two sectors purely on an inflation theme. Areas sensitive to higher interest rates like housing and stocks (in general) will not experience the same inflation boost as others mentioned.

Berkshire Hathaway: Like a Kid in a Candy Store

Author says he just bought 20 South Korean companies. That has to mean something. What the hell is going on in S. Korea that's so great other than selling commodities to China which everyone is well aware of. I've been thinking about PKX for a while. What price did Buffett pay?

Overall, you can't knock Buffett, period. However, I would not buy into his fund because of his age (portfolio management is all about the manager not the "process developed...") as the author mentions.

Sequoia Fund Reopens After 26 Years: A Look Inside

After all the great lead up I was expecting to see some interesting, market-beating/leading holdings. All I got was 23% Berkshire Hathaway and a bunch of retailers and others tied directly to the fate of the U.S. consumer who is all tapped out.

U.S centric portfolios like this will not come close to repeating past returns when the U.S. was the world's growth engine. Times have changed. I like concentrated funds but looking at their holdings I come away thinking the Sequoia looks like a "lazy Portfolio" with no vision.

Also, the founder (who Buffett was refering clients to) has passed away so where's the appeal? How did Magellin do after Peter Lynch left? How will Berkshire do after Buffett passes on?

I'll pass.