Archive for July 2009

Famous investing quotations (25) – on information

We want to run this place like the cockpit of a jetliner, where you have hundreds of different instruments before you at all times and know exactly where you are.
Dan England (b. 1948) US CEO of C.R. England. ‘The Mavericks’, Fortune (June 1995)

A Book Review – “Jack Schwager’s Complete Guide To Mastering The Markets”

Jack Schwager was one of the first investment authors to write a pretty comprehensive guide to trading in various markets, a guide fully dedicated to the so well developed nowadays field of technical analysis. The guide contains a pretty classic structure, also used quite often by the other authors in their books. (Which, in my opinion, represents a sort of a tacit recognition of the fact that Schwager was one of the first authors to formalize its method.) Read more

Famous investing quotations (23) – on information, Drucker again

The first thing practically everyone must learn is to take information responsibly.
Peter F. Drucker (b. 1909) US management consultant and academic. Quoted in Techno Vision (C.B. Wang; 1994)

More curious?:

Famous investing quotations (22) – on information

The fewer data needed, the better the information.
Peter F. Drucker (b. 1909) US management consultant and academic. Management Tasks, Responsibilities and Practices (1973)

Famous investing quotations (21) – on information

I’d always rather err on the side of openness. But there’s a difference between optimum and maximum openness, and fixing that boundary is a judgment call. The art of leadership is knowing how much information you’re going to pass on.
Warren Bennis (b. 1925) US educator and writer. Interview, Strategy + Business (July–September 1997)

The Latest Bail Out – CIT

citThis piece of news is interesting not because it would impact on any investment strategy…but rather because we are in July 209 and the subprime crisis still haunts the US Treasury. The US government was simply forced to bail out one more bank – this time the smaller CIT bank was impacted.

CIT’s problems surfaced two years ago due to the CEO Jeffrey Peek’s decision taken earlier in the decade to expand into subprime mortgages and student loans, both potentially highly profitable but fraught with added risk. CIT has about $40 billion of long-term debt, according to independent research firm CreditSights. About $1.1 billion of debt will come due in August, followed by about $2.5 billion by the end of the year. Read more

Banks Coming Back To Profit

bank-of-americaBanks will be in the S&P’s 500 spotlight this week as they release their quarterly earnings one by one. The question of the various analysts is whether the surviving financial institutions will repeat the performance of the first quarter, when they surprisingly posted profits. Read more