Rant III

Not too creative in the title. It responds to today's news at WSB in SA.

* Brazil's social problems, political problems...are rooted from its economy which depends on China buying its rich natural resources.

* So is Hong Kong with China as their parents. Glad it is over and Central Square does not turn into Tienamen Square. Will check whether I've bought EWH.

* Bet H-P printer is not as profitable as before. The time of selling you a $50 printer but charging you a $30 cartridge is close to be gone if not already gone. I still like H-P laptops with quality keyboards which my grand child cannot destroy by his big foot.

* In many cases, only one company in one industry wins and the rest are losers. As a Chinese saying, you cannot have two tigers in one mountain (unless they're part of the family :)). Turbo Tax is the winner.

* High-tech companies need to plow back a good percent of the profit to research / development to build the next mouse trap. Examples abound. That's why Buffett stays away from the companies without moats. That's why he missed all these companies such as Apple, Microsoft, Google... For the last 5 years, his crown is gone and his myths are debunked as I outlined them.

I'm either very smart or very stupid to argue with the best investor in our generation. However, I have reasons to avoid some of his ideas that are not applicable to retail investors.

* The GM problem will not be ended before the fat lady sings. Same for the banks.