Small Businesses and Profits, Wall Street Has Lost It's Reputation, and High End Vegas Housing Troubles.

An interesting article at the NY Times on the loss of Wall Street firms reputations. If one has read any history on Wall Street firms, you would know they have always been knee deep in all kinds of shenanigans. The article mentions the good ol boy network, which exists in almost every field. The one thing which is not mentioned is how the creme usually rises to the top. Jaimie Dimon endured plenty of humiliation by being fired at Citi, for really no reason other than the nepotism of Sandy Weill, and had to wait a year to get the head job at Bank One, which was in the dumps. He then turned it around, JP Morgan bought it and made him head honcho, and a few years later, he is now the king of Wall Street. Patience, brains, toughness and doing your homework paid off for Mr. Dimon, as it usually does for those with those unique traits.

Here is the article: http://dealbook.nytimes.com/2011/04/26/as-wall-st-firms-grow-their-reputations-are-dying/

Nice summary by a business owner on the psychology of making a profit when you are a small business. Most businesses, contrary to what many people believe, are small businesses. Just a thought- no huge company became that way without first evolving froma startup, to a small business, and then a medium sized business, and then a monster.

http://boss.blogs.nytimes.com/2011/04/26/what-it-means-to-make-a-profit/?ref=business

Finally, as a Las Vegas born and raised here, it makes me a bit sad to see the state of our housing environment. I can recall for 15 years in a row, you could buy a house really cheap. Now you can again, and probably will be able to for a few more years. The only other pertinent comment is when you see markets going up 50% or so in a year, it might be a good time to wonder is this sustainable, or at least ask somebody else the question. If more people would have done that, well, they didn't and we are where we are.

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

The Amazon Cloud Has a Rainstorm, Germany Benefits from the Euro. and Obama Talks Deficits

Amazon's Cloud computing services went down for a few days, and already critics are taking shots about how the whole movement to cloud services needs to be rethought. I don't think so. I believe it will only accelerate even more as the cost factor is too great:

http://seattletimes.nwsource.com/html/businesstechnology/2014851693_amazoncloud23.html

Germany is the big beneficiary of the movement to the Euro, according to the NY Times. What needs to be thought about is if Germany says 'Bye Bye' to the Euro, which is not out of the realm of possibilities:

http://www.nytimes.com/2011/04/23/business/global/23charts.html?_r=1&ref=business

Obama says the country's finances are unsustainable. It is like the D student saying he should study for tests. Don't tell me, show me. Actions speak louder than words Mr. President:

http://www.bloomberg.com/news/2011-04-20/obama-tells-facebook-audience-that-nation-s-finances-are-unsustainable-.html

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

Ebay Goes Shopping Again, FastCompany's Most Innovative Companies, Major League Baseball and Debt, and The Prices of Las Vegas Housing:

Well, the events over the last week might put to rest the idea earnings are punk. Corporations just keep hauling in the dough.

Ebay goes shopping again, looking for more advertising growth:

http://online.wsj.com/article/SB10001424052748704570704576275273798500878.html?mod=WSJ_hpp_sections_tech

Always love the most innovative companies lists:

http://www.fastcompany.com/most-innovative-companies/2011/

Major League Baseball is like Greece:

http://blogs.forbes.com/monteburke/2011/03/23/special-report-inside-baseballs-debt-disaster/

Las Vegas Housing Prices Go Back In Time:

http://www.vegasinc.com/news/2011/apr/19/report-las-vegas-home-prices-1990-levels-sales-get/

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

Elmo and Finance, Corporations and Apps, Republicans Deal on Debt, and Tom Brady

Hope everyone is having a great weekend. As a interested observer, I find it amazing the federal government is so concerned with telling people what they cannot do with their own money by shutting down on line gaming, yet the same government which is in debt to the tune of 50 trillion dollars (medicare and social security unfunded liabilities) cannot figure out to wean the country off of foreign oil- they can start by passing the Pickens plan. I don't necessarily always agree with Alan Abelson of Barron's on his consistently negative opinon on financial markets, but I do agree on his belief the politicians are the worst ever, especially our brainchildren.

On a positive side, for all parents, here is a nice article on Elmo and teaching kids finance:

http://www.nytimes.com/2011/04/16/your-money/16money.html?_r=1&ref=business

Think the digital revolution is not in full swing- here is a nice article in CFO magazine about companies starting to create their own portfolio of applications:

http://www.cfo.com/article.cfm/14564889/c_14565154?f=magazine_alsoinside

Love the spine guys- the Republicans will cut a deal on raising the debt sealing- big surprise-

http://online.wsj.com/article/SB10001424052748704204604576268881682315782.html?mod=WSJ_hp_MIDDLETopStories

For those of you who missed it, if you want to see why having belief in yourself, working hard, and taking advantage of your opportunities in a big way when you get them matter, watch the 1 hour show on Tom Brady. Charlie Munger says real opportunities don't come along that often, so when you get them, take a huge swing. Brady proves it- well worth watching.

http://search.espn.go.com/the-brady-6/videos/6

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

New Y H & C Investments Web Site

Just wanted to let people know Y H & C Investments has a new web site. I would be delighted if you would go to www.y-hc.com and take a look. Lots of old newsletters, blog posts, stock research, and everything one might be curious to find out about with regards to Y H & C Investments. Thanks.



Yale Bock, CFA

President, Y H & C Investments

Steinhardt vs Buffett, Why Demeanor Matters, Education in India vs US, and U.S. Retail Remains Strong

Another interesting week is coming to a close, and the first part of the week was noteworthy in that a couple of legendary investors were the topic when one took some real shots at the greatest

investor of our time, Warren Buffett. Michael Steinhardt is a ex-hedge fund legend turned philanthropist. He outperformed the S & P 500 for many years and made millions of dollars for investors. He absolutely

trashed Warren Buffett on monday during his time on CNBC:

http://video.cnbc.com/gallery/?video=3000014942

http://video.cnbc.com/gallery/?video=3000014541

My comment on the matter is while Steinhardt has some valid points, his demeanor during the interview undermines his arguments about Buffett. Steinhardt comes off as a bitter, jealous man when he has no need to be. There are inconsistencies with Buffett which Steinhardt accuratley points out. However, his questioning of Buffett's investment results vs the S & P 500 is stupid as everything can be verified. Buffett's demeanor is part of why so many admire the man. In the height of the 2008 downturn, Buffett was investing huge sums, and encouraging others to do so as well, and at this point, well the result speaks for itself. One can have very valid, logical arguments, but if it is couched in dourness, the arguments lose effectiveness.

Many people have bemoaned the lack of U.S. competitiveness in education, however, the facts don't necessarily indicate the U.S. is a lost cause. Very good article in the journal on India's education issues:

http://online.wsj.com/article/SB10001424052748703515504576142092863219826.html?KEYWORDS=education+in+India

Retail sales surprised today- hard to see things not getting better, though 110$ oil and higher food prices don't help the cause:

http://www.nytimes.com/2011/04/08/business/08shop.html?_r=1&ref=business

Hope everyone has a good and safe weekend.

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

Buffett vs the SEC, The World's Assets are Currently Highly Correlated, Hating the Dollar, and Patience-

Final four weekend was interesting as Butler continues to win with good defense, good shot selection and not turning the ball over. When you don't mistakes, good things can and usually do happen. The whole world will be rooting for them tomorrow night vs UCONN.

The SEC takes on Warren Buffett over stocks he has not sold- I think I know who will be right on this one- thanks to Ajit Vakil of the Value Investing Congress for posting this: http://www.linkedin.com/news?viewArticle=&articleID=459040493&gid=2217082&type=member&item=49198963&articleURL=http%3A%2F%2Fwww%2Einvestingdaily%2Ecom%2Fid%2F18490%2Fsec-to-warren-buffett-we-know-how-to-value-stocks-better-than-you%2Ehtml%3Fcigx%3Dd%2Ekac%2Cstid%2E4475%2Csid%2E242881%2Clid%2E7%2Cmid%2E2663&urlhash=bJej&goback=%2Egde_2217082_member_49198963

Nice article in the NY Times about the current high correlation of world assets:

http://www.nytimes.com/2011/04/03/your-money/03stra.html?_r=1&ref=business

Finally, the world continues to hate the dollar, imagine that:

http://online.wsj.com/article/SB10001424052748703712504576237110549117704.html?mod=WSJ_hp_LEFTWhatsNewsCollection

One thing to finally remember, things always change, it may take time, but they always change. Hope everyone has a great week- waiting on getting the new Y H & C Investments web site up and running. As always, be patient.

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments