Wealth Management on Ulitzer
On February 27, 2009 I wrote these words in an article entitled "Are Things
"6) There are only two things you can buy at unusual discounts these days: A
new car and stocks. These prices are beginning to attract takers. If things
were as dire as CNBC said, all other stuff would be cheaper".
"7) As the companies we own have reported earnings, most of them have beaten
expectations. In other words, the businesses continue to perform even though
the stock prices are not. What you own continues to become more valuable.
Over the next 5 years, the prices of these stocks will reflect that increase
in value. Patience is how we will capture it".
At the time I spoke of stock prices at the end of February and beginning of
March as once in a life time opportunities. Look at this chart of Nike and
what you see is that the price in late Febru... (more)
The Employee Meeting
I would like to start by thanking you for attending this meeting, though it's
not like you had much of a choice. After all, attendance was mandatory. I'm
also glad many of you accepted my invitation to your family members to be
here as well. I have a few remarks to make to all of you, and then we'll
retire to the ballroom for a great lunch and some employee awards.
I felt that this meeting was important enough to close all 12 of our tire and
automotive shops today so that you could be here. To reassure you, everybody
is being paid for the day --- except me.
Wealth Management on Ulitzer Wealth Management on Ulitzer - Many financial
firms are now claiming they have a "new plan", "new perspective", "new
advice" for investors. That their "green line" or "red zone" of expert
advice will now provide investment and retirement guidance that will "take
you where you want to go".
What is this new ground b reaking advice? How is it different from the
advice they were giving two years ago?
On the cover of recently received magazine it has the title "Tools of TRUE
Diversification: Skillfully applied asset allocation can reduce a portfolio's
“No clever arrangement of rotten eggs makes a good omelet."
– C.S. Lewis
After going to see the movie Wall Street and observing Carl Levin railing
against Goldman Sachs the other night on CNBC, the quote above seems quite
While I am not a raving fan of firms like Goldman, Merrill Lynch, Fidelity,
and UBS, I also do not consider them a mortal enemy. In other words, this
type of firm has its place – it’s just not providing direct investment
management advice for non-financial experts.
These firms are essential – they are the ones who create markets for
In the past I have advocated the reinstatement of the Glass Steagall Act, a
law passed in 1932 (obviously in the midst of the Great Depression) that
required a financial institution to either be an investment bank or a
commercial bank, but not both. A commercial bank takes in only deposits and
makes money only by loaning that money out at interest, period. An investment
bank takes equity positions, trades for its own account, and entices others
to invest along with, or in spite of, themselves.
Glass Steagall provided a great wall of separation between the two activities
- one wh... (more)