NewAlchemist's Blog

I am reading The Big Short

NewAlchemist — Fri, 10 May 2013 14:56:04 GMT

I've been meaning to read this book for a long time and it's very good so far. Michael Lewis is a great storyteller. In italics are some good quotes from the book on selected topics with my comments directly below.

Financials

His first assignmen...

What do you do with your money?

NewAlchemist — Thu, 09 May 2013 12:36:33 GMT

So you’ve worked hard and saved your entire life. You are nearing retirement. What do you do with your money?

Cash: In the Pre-2007 days you could put your money in a savings account at your bank and collect 3% or 4% interest. That sound crazy now but it’s true. Now, you don’t get anything for putt...

Coca-Cola pitch

NewAlchemist — Wed, 08 May 2013 22:28:37 GMT

The world’s largest beverage company sells non-alcoholic soft drinks in every country in the world except Cuba and North Korea. Last year the company raked in nearly$48 billion in revenue with 41% coming from the U.S. and 59% outside the country. This isn’t an American company, this is a global powerhouse.

A few years ago I went on vacation to Hawaii. It was about 12 hours of traveling and a 6 hour time difference. Needless to say I was exhausted when I got there. The initial excitement pushed me to check my immediate surroundings in paradise before falling asleep around 4 or 5 PM.

I woke up bright and early the next morning before everyone else and d...

I am reading Reminiscences of a Stock Operator

NewAlchemist — Thu, 02 May 2013 22:05:36 GMT

I am reading Reminiscences of a Stock Operator. It is a great book about Jesse Livermore, a trader who made and lost millions in the early 1900s. Here are some of my favorite lessons so far.

Second grade Suckers

“Suckers differ among ...

Our tax code is seriously messed up.

NewAlchemist — Tue, 30 Apr 2013 22:01:27 GMT

Our tax code is insane.
Unemployment benefits are taxable while you get a tax break for buying a $30,000 eco car. So in effect you have struggling unemployed people subsidizing the Prius purchases of the politically well connected. Nearly 50% of people pay no Federal taxes. The tax code is complicated and difficult to understand. A flat tax may not be the ultimate solution but it...

Stockman Op-Ed

NewAlchemist — Thu, 11 Apr 2013 16:46:56 GMT

A few weeks David Stockman published an Op-Ed at the NY Times that generated some buzz. Here are some highlights. I cut and paste a lot but the opinion piece is long.

Yesterday Mark Zuckerberg the founder of facebook published an opinion piece in the Washington post found here. He joins Bill Gates as a fellow technology entrepreneur calling for more high skilled immigration. This pi...

The Obamacare headwind.

NewAlchemist — Fri, 22 Mar 2013 15:52:14 GMT

The market has been worried about tax increases, debt ceiling, sequester, and Europe but you haven't heard a lot of concerns over Obamacare. Obamacare is supposed to start Janruary 1, 2014. I believe as we get closer to the end of the year and it is talked about on TV more, the market grow more concerned. Right now it is out of sight out of mind. The big story in the market is the new highs of the market.
Some stats from an interesting article.
4.8 million unemployed Americans -- 40 percent of all those jobless -- who have been out of work for more than 27 weeks, even as the economy has been growing since June 2009

Top Arguments Against Buffett's Berkshire Hathaway

NewAlchemist — Wed, 20 Mar 2013 18:06:15 GMT

Last week 16 Fool analysts revealed their top 2 holdings. Berkshire Hathaway came out as the most widely held stock. I am here to offer a contrary point of view.

Cyprus will impose a levy of 6.75 percent on deposits of less than 100,000 euros -- the ceiling for European Union account insurance -- and 9.9 percent above that.
This is an outrageous assault on property rights and the rule of law. This is not inv...

Microsoft fined $731 by EU

NewAlchemist — Wed, 13 Mar 2013 23:16:27 GMT

This story is so last week but it isn't getting the press it deserves. Microsoft was fined $731 million by the EU for "not giving consumers a choice of how they access the internet". So the EU fined Microsoft $731 million dollars because 15 million Europeans between May 2011 and July 201...

10 other dividend growth investments.

NewAlchemist — Wed, 27 Feb 2013 22:41:25 GMT

How many times have you read that JNJ/PG/KO/MCD/MO are good dividend growth investing stocks? Coca Cola is a global maker of soft drinks, beverages…Duh! I love dividend growth investing but I can do without the robo articles. Those stocks are obvious but what are some other options a dividend growth investor can use to diversify? Since you probably want to own more than a handful of stocks...

Why Dividend Growth investing has exploded in popularity.

NewAlchemist — Tue, 26 Feb 2013 23:25:47 GMT

Investing websites like Motley Fool and Seeking Alpha are loaded with Dividend Growth Investing articles. There is now a cult like obsession with this investment strategy. If you mention “DGI” to a fellow believer you will likely get an exciting response. There is more than one way to skin a cat. No two Dividend growth investors are exactly alike but many share a common investment object...

Apple's cash stash

NewAlchemist — Thu, 14 Feb 2013 21:33:09 GMT

Why does Apple keep so much cash on hand? If someone knows, please tell me. Some speculate it is due to a “depression era mind set”. Others say for acquisitions or because much of the cash is overseas. I don’t know what the true answer is.

Apple released earnings last month. After analysts peppered Apple CEO Tim Cook with all sorts of qu...

Google's Secret Weapon

NewAlchemist — Wed, 13 Feb 2013 22:55:53 GMT

Google needs no introduction. They are the information leader in the information age. They have effectively monetized information. In the future companies bid on words and the future is now. If you want to compete with them, good luck, their products are excellent and usually given to consumers for free.

So what is their secret weapon? P...