Thursday, January 27, 2011 Francisco Carneiro 0 Comments

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if you had a huge profit margin for the whole economy, capitalism being what it is,
you would want to multiply it by a low P/E because you know high returns will suck in competition, more capital, and bid down the returns (conversely at the low end). But what actually happens? Instead of having a correlation of −1, our research shows it has a correlation of +.32. The market can’t even get the sign right! High profi t margins receive high P/Es and vice versa, and the correlation is much greater than +.32 at the peaks and the troughs　Part 2: On the Importance of Asset Class Bubbles for
Value Investors and Why They Occur
Jeremy Grantham


PS i liked this link

http://www.youtube.com/watch?v=GxplDa3M5Io&feature=player_embedded# 

Friday, January 21, 2011 Francisco Carneiro 0 Comments

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The best doctor in the world is the veterinarian. He can't ask his patients what is the matter-he's got to just know.
Will Rogers
US humorist & showman (1879 - 1935)

Wednesday, January 19, 2011 Francisco Carneiro 0 Comments

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What Chinese parents understand is that nothing is fun until you're good at it
　
From, WSJ Why Chinese Mothers Are Superior

http://online.wsj.com/article_email/SB10001424052748704111504576059713528698754-lMyQjAxMTAxMDEwODExNDgyWj.html

Ps I am not a Chinese father, only in sports a bit.
PS2 from the same articleChinese parents believe that their kids owe them everything. The reason for this is a little unclear, but it's probably a combination of Confucian filial piety and the fact that the parents have sacrificed and done so much for their children. (And it's true that Chinese mothers get in the trenches, putting in long grueling hours personally tutoring, training, interrogating and spying on their kids.) Anyway, the understanding is that Chinese children must spend their lives repaying their parents by obeying them and making them proud. . To get good at anything you have to work, and children on their own never want to work, which is why it is crucial to override their preferences. This often requires fortitude on the part of the parents because the child will resist; things are always hardest at the beginning, which is where Western parents tend to give up. But if done properly, the Chinese strategy produces a virtuous circle. Tenacious practice, practice, practice is crucial for excellence; rote repetition is underrated in America. Once a child starts to excel at something—whether it's math, piano, pitching or ballet—he or she gets praise, admiration and satisfaction. This builds confidence and makes the once not-fun activity fun. This in turn makes it easier for the parent to get the child to work even more.

Tuesday, January 18, 2011 Francisco Carneiro 0 Comments

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Success is blocked by concentrating on it and planning for it... Success is shy - it won't come out while you're watching.
Tennessee Williams

Monday, January 17, 2011 Francisco Carneiro 0 Comments

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Why Newton was wrong
Theory says that the past performance of share prices is no guide to the future. Practice says otherwise
http://www.economist.com/node/17848665

PS If you want to throw some business my way (thanks in advance) we have a product that plays this very well. Its Called BPI Universal Lux
BPIGLIN LX.
Last 5 years up 6,86% per year.
Isin LU0220378623
Min investment 250,000
Daily liquidity.
No lock-up's
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Friday, January 14, 2011 Francisco Carneiro 0 Comments

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White-collar work is doomed: get your hands dirtyThe Case for Working with Your Hands: Or Why Office Work is Bad for Us and Fixing Things Feels Good [Paperback] 　
Why would anybody pay for a British architect or accountant, Crawford asks, when there are competent ones who charge less in China or India? Manual work resists outsorcing for a simple reason:it is tied to a particular location. If you need a haircut in Manchester, a barber in Bangalore is no use to you. And if you lavatory is bocked in London, you don't call a plumber in Taiwan…….if you want a job that is secure, you must throw over your desk, get out of your cubicle, and learn to use a tool.
　
　

Thursday, January 13, 2011 Francisco Carneiro 0 Comments

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When people start out on adult life, they are, on average, pretty cheerful. Things go downhill from youth to middle age until they reach a nadir commonly known as the mid-life crisis. So far, so familiar. The surprising part happens after that. Although as people move towards old age they lose things they treasure—vitality, mental sharpness and looks—they also gain what people spend their lives pursuing: happiness……...Could the misery of the middle-aged be the consequence of sharing space with angry adolescents? And older people tend to be richer. Could their relative contentment be the result of their piles of cash?
The answer, it turns out, is no: control for cash, employment status and children, and the U-bend is still there. So the growing happiness that follows middle-aged misery must be the result not of external circumstances but of internal changes.

http://www.economist.com/node/17722567


PS Just landed from Geneva. Good sleep in Geneva as usual (despite waking up at 3.30 am!), no noise. I friend booked a cab the night before and gave the guy the code for the condo. The taxi was inside the condo waiting for me at 4am!. Things work well there although pretty expensive (50 CHF).
In Lisbon we landed with big fog. It's amazing to land a plane with no visibility at all!.

Tuesday, January 11, 2011 Francisco Carneiro 0 Comments

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The idea that the government can grow the economy is seriously flawed. The economy grows on its own unless there are obstacles placed in the way. The best thing the government can do is remove those impediments, such as the high corporate tax rate, and allow the economy to send out new roots and green shoots. Water it periodically. Fertilize occasionally with organic material. And don’t overfeed.
　Caroline Baum

http://www.blogger.com/post-create.g?blogID=1255205710242367002&pli=1

Friday, January 07, 2011 Francisco Carneiro 0 Comments

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MY LAST TRIP TO COSTCO

Yesterday I was at my local COSTCO buying a large bag of Purina dog chow
for my loyal pet, Jake, the Wonder Dog and was in the check-out line when
a woman behind me asked if I had a dog.

What did she think I had an elephant? So since I'm retired and have little
to do, on impulse I told her that no, I didn't have a dog, I was starting
the Purina Diet again. I added that I probably shouldn't, because I ended
up in the hospital last time, but that I'd lost 50 pounds before I
awakened in an intensive care ward with tubes coming out of most of my
orifices and IVs in both arms.

I told her that it was essentially a Perfect Diet and that the way that it
works is, to load your pants pockets with Purina Nuggets and simply eat
one or two every time you feel hungry. The food is nutritionally complete
so it works well and I was going to try it again. (I have to mention here
that practically everyone in line was now enthralled with my story.)

Horrified, she asked if I ended up in intensive care, because the dog food
poisoned me. I told her no, I stepped off a curb to sniff a poodle's ass
and a car hit me.

I thought the guy behind her was going to have a heart attack he was
laughing so hard.

Costco won't let me shop there anymore.

Better watch what you ask retired people. They have all the time in the
world to think of crazy things to say.

Friday, January 07, 2011 Francisco Carneiro 0 Comments

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If you want a guarantee, buy a toaster.
Clint Eastwood

Monday, January 03, 2011 Francisco Carneiro 0 Comments

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A systemic cleansing and detox is definitely the way to go after each holiday. It is the key to fighting high blood pressure, heart disease, cancer, and other health-related illnesses.
Lee Haney
PS Sunday I did a Bike ride with a small group with 3 of the best riders in Portugal. Hugo Sabido, Nuno Sabido and Sérgio Paulinho. Sérgio won 1 stage of the Tour the France last year (2010). He rides for Lance's Team. Hugo is a cronic top 10 finisher of the Tour of Portugal and Nuno is a top Mountainbike specialist. It was very nice that even for 1 day i was able to ride with them for 100 k.
I felt overweight comparing to them. I need a Detox fast.

http://news.bbc.co.uk/sport2/hi/other_sports/cycling/8821968.stm

Sunday, January 02, 2011 Francisco Carneiro 0 Comments

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It is not because things are difficult that we do not dare; it is because we do not dare that they are difficult.
Seneca
Roman dramatist, philosopher, & politician (5 BC - 65 AD)