Thursday, March 1, 2012


I love this month's post by Bill Gross. It's all about defense and how strongly he believes in this particular tactic being more important now than in any time in the recent past. He talks of how it is the big hitters and headline grabbers who win prestige and fame; and how, people who keep their heads low - like Ray Dalio, Seth Klarman, WB (and Bill Gross) - win the accolades by the time they retire/ die. Well, I believe that is what he hints at anyway. I believe Buffett's latest plays have been based on accepting that corporate growth in the future is going to be sub-par - hence the Burlington N and IBM and Lubrizol; fantastic competitive advantages with insignificant upside room. I wonder if the new economies of India and China do hold any promise...
Oh, and yes. Recently, there was a post by Buffett (also part of his yearly letter) about the demerits of gold. You can fondle it all you want, but it wont respond. And just a few days ago, there was an excellent rebuttal by a relatively unknown - here. Both of them are missing the point may be... Gold is not an excellent investment. It is, however, an excellent speculation dependent on the effects of monetary expansion and competitive currency deleveraging globally. One ought to get out after global printing subsides. 

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