Buffett, Gates and Blankfein

I have read two very good articles this week and wanted to share. They are about investing and business so beware. The first was a town hall meeting with Bill Gates and Warren Buffett at Columbia University. The second was an article by John Arlidge about Goldman Sachs.

Here are some memorable quotes from the Town Hall:

"projecting out into the years ahead ... are we making the right investments, are we gaining on the competition, are we making it a little bit harder for people to replace what we're doing?"
- Gates

"the best systems are ones where you have good short-term metrics, great accounting, looking at profits, looking at risk and willing to do things long-term"
- Gates

"run this business like it's the only business that your family can own for the next 100 years. You can't sell it. ... Measure it by whether the moat around that business, what gives it competitive advantage over time has widened or narrowed. ... If the reason for doing something is everybody else if doing it, it's not good enough. If you have to use that as a reason, forget it"
- Buffett

Full transcript http://www.cnbc.com/id/33901003/

Insights from the Goldman Article
Inspect
"Staff rigorously price ... the bank's assets every day, down to the last cent, and forensically examine daily profit and loss. This helps the bank to see market trends clearly and early and, it believes, to manage risk better than most other banks. 'We think we make better decisions' says Beshel"

Work harder than everyone else
"you have to work harder than the average bear ... 'it's a 24/7 culture, When you're needed, you're here. and if you're needed and you're not answering your phone, you won't be needed very long"

Learn all you can
"You are programmed at an early stage to go out more than the other guy, to see more people - clients, hedge funds or private equity guys ... brain pick. You ask what's their best trade. How do they see the market? You offer something in return, but you always come back with something."

Work as a team
"then you feed it to colleagues who go to work trying to use the information to make money. It's a team effort" "we're in this together"

Develop systems that drive your values
"You can have a great career in banking as an individual, but it won't be here. The system weeds out those who can't play nicely with others"

Recruit the best talent you can find
"Most applicants are interviewed at least 20 times before they are made an offer and some more than 30 times."

Pay the best talent very very well
"Sachs isn't nicknamed 'Goldmine Sachs' for nothing. Some 953 employees got bonuses of at least $1 million in 2008"

Article http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6907681.ece?token=null&offset=0&page=1

To Think

I heard or read a great statement the other day, "I want to think things I have never thought before."

You must obey: Unwritten laws of technology

Here is a great list of all the reasons why your computer, cell and gadget never work like they should.

Law 1: For every fix that a Windows Update patches, the update will break two more things on your PC. — Darren Gladstone, PC World

Law 1: For every fix that a Windows Update patches, the update will break two more things on your PC. — Darren Gladstone, PC World

Law 2: The likelihood that Windows will automatically install time-sucking critical updates is directly proportional to your need to get your PC started. — Steve Fox, PC World

Law 3: The hard drive always fails just before you were going to back it up. — Denise Paolucci, Dreamwidth Studios via Help A Reporter Out (HARO)

Law 4: Your data will get corrupted just before you plug in your new backup external drive. —Darren Gladstone, PC World

Law 5: Your backup plan is only as good as your last successful restore. — Michael Fisher, ElephantDrive.com via HARO

Law 6: The number of USB ports on your Mac will always be one less than you need at any given time. — Blair Hanley Frank, Macworld

Law 7: Feeling time pressure to make a computer fix quickly will cause you to take longer. —David Marshak, via PC World Facebook page

Law 8: If you close the PC case with screws before testing, it won't work. If you test before closing, it will. — Harry Liebman via HARO

There are more: click the link to read the whole story.
http://www.msnbc.msn.com/id/32393717/ns/technology_and_science-tech_and_gadgets//

I got the flu

So I got, what feels like, the flu yesterday. Painful muscle aches, intestinal cramps, fever, cold sweats. Today I am feeling much better but still sick. My mother-in-law is visiting and she had the same thing 4 days ago. I'll have to wait to see who else in the family gets it. I did not go in to get tested for flu or swine flu, it's not that bad.

Santelli goes to Washington and the Chicago Tea party. Must Watch!

Rick Santelli has been a new man for CNBC for 15 years. He hit a nerve this week when he attacked the presidents housing plan.

Here is the White House reply to Santelli.
http://www.youtube.com/watch?v=bEZB4taSEoA&eurl=http://www.survivalistboards.com/showthread.php?t=44565&feature=player_embedded

Here is Santelli's reply back. This thing is heating up.
http://www.cnbc.com/id/15840232?video=1041856849&play=1

White House hits back again. This is one of the worst atacks on the press.
http://www.cnbc.com/id/15840232?video=1041856849&play=1

Here is some more.
http://www.cnbc.com/id/15840232?video=1040944991&play=1

Are you concerned about Foreclosure?

This website is dedicated to providing people with the knowledge and tools needed to fight foreclosure. Very good resource. http://livinglies.wordpress.com/

Vegetable Shortage

You just might have to grow your own tomatoes this year as thousands of acres of farmland go fallow this spring due to California's continued drought.

http://www.msnbc.msn.com/id/28808767/

Hedge-funders are bullish on Gold, Guns and inflatable Lifeboats

It is interesting to see how even the wealthest people in the world are concerned enough to by Gold, Guns and Inflatable Lifeboats (to leave Manhattan) these days.

The New Paranoia: Hedge-Funders Are Bullish on Gold, Guns, and Inflatable Lifeboats - NewYorkTimes
http://nymag.com/news/features/all-new/53372/

Model railroad

I picked up a HO model train layout on craigslist.org for free. It is from the 70's and has a few issues but does work. I pulled the trains I have been collecting for the last 25 years.

Mouthwash linked to cancer

Just when you thought it was safe to breath ... on others. The Australia's leading experts have found "sufficient evidence" that mouthwash can cause oral cancer.

http://www.news.com.au//dailytelegraph/story/0,22049,24896583-5001021,00.html

John Batchelor Predicts the next crash

John Batchelor predicts the next crashes to be first Cars, then New Papers, Retail and last of all Food. Farmers this year have planted less food this year even though we had a worldwide food shortage last year and continue to have one this year.

http://johnbatchelorshow.com/debrief/2009/01/de-brief---january-4-2009.php