February 8, 2012

We Are Living in the Midst of One of the Biggest Bond Bubbles in History

McDonald's Bond Certificate Corporate Debentures

Today, I was sitting at the dining room table, drinking a cup of coffee and wearing my Brooks Brothers pajamas watching the stock market skyrocket when it occurred to me that, given the secret project and some other things going on at the business, I want to build some cash and bond reserves at one of the individual operating companies; maybe put aside money a little at a time, let it build and do something fun with it three or four years from now, like design and build a row of townhouses or … [Read more...]

Think Like a Spider Web, Not an Organizational Chart

Life Is Like 3D Chess

Here is the best thing I heard all day ... Life is not an organization chart. Life is more like a spider's web. Things happen in strange ways. - Ross Perot There is a lot of truth in this. You cannot think lineally about your life or business. You need to think in three-dimensions. This is one of the reasons people are successful. Take my parents and their company, Chenille Appeal. How is it they were able to grow, fund significant expansion and make major technology upgrades … [Read more...]

One Very, Very Good Thing About the Financial Reform Bill That Just Passed Congress

Derivatives Trading Office

I don't care what anyone tells you, I want you to listen to me very, very carefully: Although I cannot give an opinion on the financial reform act that just passed Congress because I haven't read it yet, I can say that the provision that requires all derivatives other than those used for "commercial purposes" to be traded on a regulated exchange is absolutely, positively, 100% required if we have any hope of avoiding a collapse like we had following the failure of Lehman Brothers. I realize, … [Read more...]

Some Changes in the Portfolio

Aaron and I are wrapping up all of the tax documents for fiscal 2009 before shipping them off to the accountants, listening to the new Goldfrapp album, and tweaking the investment portfolio a bit. I liquidated a respectable portion of the LEAP stock options we bought on General Electric during the crash now that it is approaching $19 per share, or at least was during today's trading session.  The time premium was no longer adequately reflecting the risk, in my opinion, especially relative to … [Read more...]

Family Member Speculating on Citigroup Stock Options

Citigroup Stock Certificate

Some time ago, a family member of mine decided to take a tiny portion of his speculation portfolio and trade stock options on Citigroup.  This wasn't his investment capital, he was fully aware it could totally and completely blow up, but thought it would be interesting and great entertainment, plus he figured that he was right.  With the rest of his "financial house" in order, so to speak, and conservatively managed, it provided far more enjoyment for him than, say, a cruise or blowing the … [Read more...]