Portfolio positioning

[jay21]

 

  Giofranchi, it is really difficult, if not impossible, to calculate probabilities of such extreme events (that's one of the main points of the Black Swan book). I am not talking about regular diversification, to reduce the volatility of your results. BRK and FFH are wonderful companies in that respect, very solid (a significant chunk of my portfolio is in FFH). I am talking about "Black Swans", things which would seriously affect the whole company. BRK is so big that it is difficult to think of something which would kill it and not kill most of the stock market simultaneously, but imagine a succession of unprecedented, freak weather events which bankrupt all the insurance companies in the world, or a problem with some of the subsidiaries which involves terrible lawsuits, or WB going nuts, etc.  In the case of FFH there was a Black Swan several years ago, with the concerted attack of the hedgies. Yes, there are institutions which are TBTF, but that doesn't mean their shareholders won't lose their shirts.

 

BRK will never be a 0.  The way Buffet underwrites, he will not expose the company to a risk that will result in a 0.  The Board will keep Buffet from destroying the company if he goes nuts.  Not sure how a lawsuit would affect retailers and utilities and chemical companies etc.  Buffet wants BRK to succeed well after he is gone and is trying to set it up so it can't be destroyed.

 

It is probably the only company I know of where I would feel comfortable putting close to 100% of my NW in (always leave a little cash just in case and for potential opportunities).

[ERICOPOLY]

Actually, on the topic for why already rich people reach for yet more yield...

 

Buffett already stated:

1)  nuclear terrorism would have taken Berkshire down had he not realized it at one point and had the policies changed.  But for a period of time Berkshire was completely exposed

2)  Buffett clearly stated that Berkshire would have gone under in 2008/2009 had the government not bailed it out by proxy (he might be exaggerating to bolster a political point)

 

Prem Watsa:

Keeps on leveraging his wealth with insurance underwriting.  Why dude, you are totally rich already?  Your unleveraged equity investing returns have been 17% long term... when is enough enough?  It's not as good as 20% so you need to write insurance to lever it up? 

 

I'm just pointing out that it's not strictly about needs that keeps people reaching for the little bit extra through these forms of added risk -- it's about the fun, the personal relationships, and the adventure as well.

 

They are certainly both adding risk through insurance but neither one of the men needs to do so in order to generate market beating returns.

 

[Palantir]

^ I think Buffett might have been exaggerating a teensy bit. Given the size of Berkshire's balance sheet it's hard to see how they would have gone belly up.

 

I am no superinvestor, just a 25-yo investing his little Roth IRA, my $0.02 are:

 

So far I believe in equal weighting positions. That's really more of a risk management view - I don't know which of my positions is more likely to be successful, so I'd rather not favor one position over the other (will MSFT do better than GOOG? No clue). I am more of a "moat" investor, so I believe if you're looking for "great companies at decent prices", you need to take substantial, meaningful positions, at the same time, not so big that it will bring down your portfolio, and thus far, I've settled on 10% allocation to each stock. So the largest loss I can make on a position is 10%, but it also limits my gains. Sometimes I feel 10 stocks is too diversified, but I'm still basically a beginner, so I'll settle for not making major mistakes.

 

I think if I was doing a deep-value strategy, I'd try to invest in much more diversified positions, so I would probably allocate 2.5-5% to a net-net type of stock.

[onyx1]

 

 

I'm just pointing out that it's not strictly about needs that keeps people reaching for the little bit extra through these forms of added risk -- it's about the fun, the personal relationships, and the adventure as well.

 

 

 

Which is why, Eric, that when you say you are headed to the sidelines (clipping dividends from high quality, low risk stocks) after the next wave of wealth, I don't believe you!  :)

 

There is a lot of truth in the old cliche: "It is the journey, not the destination."  I see it time and again including my personal experience.  When I first started working I dreamed of making six figures annually and felt that a after a few years at that level I could walk away and live on easy street.  Two years later I had reached that goal at the age of 27.  I took me about a week to get accustom to my new "wealth" and realize there was more, much more, if I wanted to stay the course.  I ended up working for another 20 years. And my income went up exponentially with over the years.  By any objective measure I could have walked away anytime, but I couldn't break away from opportunity.    It was just too exciting and fun.  I stopped working for others five years ago at 47.  I thought I would play lots of golf, travel on Netjets, and spend lots of time relaxing poolside in my new mansion as that is all easily in my budget.    What actually happened?  I live in a modest home, travel coach, and spend my time reading financial reports.  I commit more energy to wealth creation now than ever before but enjoy every minute of it.  It's just too fun and to walk away would be a setback to my level of life satisfaction.

 

Right now you see it as a stressful rollercoaster and you want to get off, and sit on the sidelines in the shade.  But as time passes you will remember the thrill and forget the anxiety which makes it very hard to stay away from a significant allocation of assets to the next "inevitable".  I hope BAC rallies like crazy, and that you at least have a chance to prove me wrong, but until then I'm betting against because I believe wealth doesn't change our fundamental approach to life. 

[racemize]

 

 

I'm just pointing out that it's not strictly about needs that keeps people reaching for the little bit extra through these forms of added risk -- it's about the fun, the personal relationships, and the adventure as well.

 

They are certainly both adding risk through insurance but neither one of the men needs to do so in order to generate market beating returns.

 

Which is why, Eric, that when you say you are headed to the sidelines (clipping dividends from high quality, low risk stocks) after the next wave of wealth, I don't believe you!  :)

 

There is a lot of truth in the old cliche: "It is the journey, not the destination."  I see it time and again including my personal experience.  When I first started working I dreamed of making six figures annually and felt that a after a few years at that level I could walk away and live on easy street.  Two years later I had reached that goal at the age of 27.  I took me about a week to get accustom to my new "wealth" and realize there was more, much more, if I wanted to stay the course.  I ended up working for another 20 years. And my income went up exponentially with over the years.  By any objective measure I could have walked away anytime, but I couldn't break away from opportunity.    It was just too exciting and fun.  I stopped working for others five years ago at 47.  I thought I would play lots of golf, travel on Netjets, and spend lots of time relaxing poolside in my new mansion as that is all easily in my budget.    What actually happened?  I live in a modest home, travel coach, and spend my time reading financial reports.  I commit more energy to wealth creation now than ever before but enjoy every minute of it.  It's just too fun and to walk away would be a setback to my level of life satisfaction.

 

Right now you see it as a stressful rollercoaster and you want to get off, and sit on the sidelines in the shade.  But as time passes you will remember the thrill and forget the anxiety which makes it very hard to stay away from a significant allocation of assets to the next "inevitable".  I hope BAC rallies like crazy, and that you at least have a chance to prove me wrong, but until then I'm betting against because I believe wealth doesn't change our fundamental approach to life.

 

Thanks for sharing!

[giofranchi]

 

 

I'm just pointing out that it's not strictly about needs that keeps people reaching for the little bit extra through these forms of added risk -- it's about the fun, the personal relationships, and the adventure as well.

 

 

 

Which is why, Eric, that when you say you are headed to the sidelines (clipping dividends from high quality, low risk stocks) after the next wave of wealth, I don't believe you!  :)

 

There is a lot of truth in the old cliche: "It is the journey, not the destination."  I see it time and again including my personal experience.  When I first started working I dreamed of making six figures annually and felt that a after a few years at that level I could walk away and live on easy street.  Two years later I had reached that goal at the age of 27.  I took me about a week to get accustom to my new "wealth" and realize there was more, much more, if I wanted to stay the course.  I ended up working for another 20 years. And my income went up exponentially with over the years.  By any objective measure I could have walked away anytime, but I couldn't break away from opportunity.    It was just too exciting and fun.  I stopped working for others five years ago at 47.  I thought I would play lots of golf, travel on Netjets, and spend lots of time relaxing poolside in my new mansion as that is all easily in my budget.    What actually happened?  I live in a modest home, travel coach, and spend my time reading financial reports.  I commit more energy to wealth creation now than ever before but enjoy every minute of it.  It's just too fun and to walk away would be a setback to my level of life satisfaction.

 

Right now you see it as a stressful rollercoaster and you want to get off, and sit on the sidelines in the shade.  But as time passes you will remember the thrill and forget the anxiety which makes it very hard to stay away from a significant allocation of assets to the next "inevitable".  I hope BAC rallies like crazy, and that you at least have a chance to prove me wrong, but until then I'm betting against because I believe wealth doesn't change our fundamental approach to life.

 

onyx1,

I am very impressed by what you have just written!

It is just amazing how many fabulously accomplished people can be met on this wonderful board!! :)

 

giofranchi

 

[rkbabang]

An interesting discussion.  While I'm not on the level of many (most) on this board I have learned quite a lot from many of you over the years.

 

My portfolio which historically has been around 8-20 positions, usually concentrated in the top 5-10 or so, is now basically in 2 companies.  I've had 30%+ positions before: Fairfax recently, and in the past: Western Sizzlin, Steak and Shake, and the MIDD/OVEN situation (all of which worked out very well for me), but the rest of my portfolio was always fairly well diversified. This is by far the most concentrated I've ever been.

 

I've got roughly 40% BAC class A warrants, 10% various BAC 2014 & 2015 calls, a small amount of class B warrants and BAC common.  34% Fairfax, and <5% positions in BRK-B, CMG, GOOG, HOTR, ISRG, MIL, MNGGF, SAFT, MKL.  Most of those were larger positions which I sold all but a small amount to invest in BAC.

 

Earlier this year I spend about a week reading the BAC A warrants discussion on this board from start to finish (I'd recommend doing that to anyone interested in BAC, there is a wealth of info and links to more info there) and that helped me with the decision to concentrate.  I've been building my Fairfax position for years, it was already more than a third of my portfolio at the beginning of this year and it is the reason that I am down for the year right now after having a few years of pretty good returns (70.9% in 2009, 21.2% in 2010, 12.7% in 2011).  In 2012 so far I'm down 15.2%.

 

[ERICOPOLY]

 

 

I'm just pointing out that it's not strictly about needs that keeps people reaching for the little bit extra through these forms of added risk -- it's about the fun, the personal relationships, and the adventure as well.

 

 

 

Which is why, Eric, that when you say you are headed to the sidelines (clipping dividends from high quality, low risk stocks) after the next wave of wealth, I don't believe you!  :)

 

To some degree you are right but I have to play a game with myself to try to keep this manageable from a psychological standpoint.

 

One of the funny things is that I want to move my RothIRA assets from Fidelity to Wells Fargo (where I have my checking account) but so far the only thing keeping me at Fidelity is that performance feature.  I'm so vain!

 

My advice to anyone running a brokerage business is to get one of those systems implemented right away -- it increases the stickiness of customers (although, maybe if you were doing poorly it would be an incentive to switch brokers).

[beerbaron]

 

 

I'm just pointing out that it's not strictly about needs that keeps people reaching for the little bit extra through these forms of added risk -- it's about the fun, the personal relationships, and the adventure as well.

 

 

 

Which is why, Eric, that when you say you are headed to the sidelines (clipping dividends from high quality, low risk stocks) after the next wave of wealth, I don't believe you!  :)

 

To some degree you are right but I have to play a game with myself to try to keep this manageable from a psychological standpoint.

 

One of the funny things is that I want to move my RothIRA assets from Fidelity to Wells Fargo (where I have my checking account) but so far the only thing keeping me at Fidelity is that performance feature.  I'm so vain!

 

My advice to anyone running a brokerage business is to get one of those systems implemented right away -- it increases the stickiness of customers (although, maybe if you were doing poorly it would be an incentive to switch brokers).

 

It's a good incetive only if the customer has above average returns!

 

BeerBaron

[LC]

 

 

I'm just pointing out that it's not strictly about needs that keeps people reaching for the little bit extra through these forms of added risk -- it's about the fun, the personal relationships, and the adventure as well.

 

 

I'm new here, and young to boot. I feel this way just about daily while reading this board. It's a great community.

 

Which is why, Eric, that when you say you are headed to the sidelines (clipping dividends from high quality, low risk stocks) after the next wave of wealth, I don't believe you!  :)

 

There is a lot of truth in the old cliche: "It is the journey, not the destination."  I see it time and again including my personal experience.  When I first started working I dreamed of making six figures annually and felt that a after a few years at that level I could walk away and live on easy street.  Two years later I had reached that goal at the age of 27.  I took me about a week to get accustom to my new "wealth" and realize there was more, much more, if I wanted to stay the course.  I ended up working for another 20 years. And my income went up exponentially with over the years.  By any objective measure I could have walked away anytime, but I couldn't break away from opportunity.    It was just too exciting and fun.  I stopped working for others five years ago at 47.  I thought I would play lots of golf, travel on Netjets, and spend lots of time relaxing poolside in my new mansion as that is all easily in my budget.    What actually happened?  I live in a modest home, travel coach, and spend my time reading financial reports.  I commit more energy to wealth creation now than ever before but enjoy every minute of it.  It's just too fun and to walk away would be a setback to my level of life satisfaction.

 

Right now you see it as a stressful rollercoaster and you want to get off, and sit on the sidelines in the shade.  But as time passes you will remember the thrill and forget the anxiety which makes it very hard to stay away from a significant allocation of assets to the next "inevitable".  I hope BAC rallies like crazy, and that you at least have a chance to prove me wrong, but until then I'm betting against because I believe wealth doesn't change our fundamental approach to life.

 

onyx1,

I am very impressed by what you have just written!

It is just amazing how many fabulously accomplished people can be met on this wonderful board!! :)

 

giofranchi

[jay21]

 

Right now you see it as a stressful rollercoaster and you want to get off, and sit on the sidelines in the shade.  But as time passes you will remember the thrill and forget the anxiety which makes it very hard to stay away from a significant allocation of assets to the next "inevitable".  I hope BAC rallies like crazy, and that you at least have a chance to prove me wrong, but until then I'm betting against because I believe wealth doesn't change our fundamental approach to life.

 

So you are short BAC?  Can you recap your thesis please?

[stahleyp]

 

Right now you see it as a stressful rollercoaster and you want to get off, and sit on the sidelines in the shade.  But as time passes you will remember the thrill and forget the anxiety which makes it very hard to stay away from a significant allocation of assets to the next "inevitable".  I hope BAC rallies like crazy, and that you at least have a chance to prove me wrong, but until then I'm betting against because I believe wealth doesn't change our fundamental approach to life.

 

So you are short BAC?  Can you recap your thesis please?

 

jay, I believe onyx is referring to betting against eric getting out of the investment game completely - not against BAC. :)

[twacowfca]

 

 

I'm just pointing out that it's not strictly about needs that keeps people reaching for the little bit extra through these forms of added risk -- it's about the fun, the personal relationships, and the adventure as well.

 

 

 

Which is why, Eric, that when you say you are headed to the sidelines (clipping dividends from high quality, low risk stocks) after the next wave of wealth, I don't believe you!  :)

 

There is a lot of truth in the old cliche: "It is the journey, not the destination."  I see it time and again including my personal experience.  When I first started working I dreamed of making six figures annually and felt that a after a few years at that level I could walk away and live on easy street.  Two years later I had reached that goal at the age of 27.  I took me about a week to get accustom to my new "wealth" and realize there was more, much more, if I wanted to stay the course.  I ended up working for another 20 years. And my income went up exponentially with over the years.  By any objective measure I could have walked away anytime, but I couldn't break away from opportunity.    It was just too exciting and fun.  I stopped working for others five years ago at 47.  I thought I would play lots of golf, travel on Netjets, and spend lots of time relaxing poolside in my new mansion as that is all easily in my budget.    What actually happened?  I live in a modest home, travel coach, and spend my time reading financial reports.  I commit more energy to wealth creation now than ever before but enjoy every minute of it.  It's just too fun and to walk away would be a setback to my level of life satisfaction.

 

Right now you see it as a stressful rollercoaster and you want to get off, and sit on the sidelines in the shade.  But as time passes you will remember the thrill and forget the anxiety which makes it very hard to stay away from a significant allocation of assets to the next "inevitable".  I hope BAC rallies like crazy, and that you at least have a chance to prove me wrong, but until then I'm betting against because I believe wealth doesn't change our fundamental approach to life.

 

onyx1,

I am very impressed by what you have just written!

It is just amazing how many fabulously accomplished people can be met on this wonderful board!! :)

 

giofranchi

 

I like to discover amazing or useful things and share them with others who find them interesting.    I have had this strong motivation since I was eighteen months old.  The accumulation of wealth has become a discomfiting source of imbalance in my life, taking time away from other interesting persuits.  Were it not for the high level of interest on this board in common ideas, and the many expressions of encouragement I have received from many of you, I would probably devote much more time to collecting additional evidence to support a few epidemiological discoveries.  Thank you for your interest in some of the things I have learned.  I have benefited even more from all the things I have learned from you.  It makes participation fun!

 

It is hard for me to maintain interest in other areas where positive enthusiasm and useful, interested criticism is rare.  That's why I like this board even though I usually move on to other interests when I have a fairly good mastery of a subject.

 

Lancashire is too large a position by almost any calculation, but the remaining third of the portfolio would still be worth more than the entire portfolio was worth six years ago if Lancashire went to zero, a possible though unlikely event.  Even so, this year may be the first time that the special Lancashire dividend may not be reinvested in the same company because of the huge over weight.  In a way, this would be sad because Lancashire's prospects have never been brighter, nor tail risk  exposure lower.  We'll see.  :)

 

 

[ERICOPOLY]

I thought I would play lots of golf, travel on Netjets, and spend lots of time relaxing poolside in my new mansion as that is all easily in my budget.    What actually happened?  I live in a modest home, travel coach, and spend my time reading financial reports.

 

One of the shows I always hated was Lifestyles of the Rich and Famous.  Champagne days and caviar dreams.  Yuck!  That was a very tacky show.

 

At first I was mentioning NetJets metaphorically, but since moving to Santa Barbara I'm finding it to be practical (albeit very, very expensive).  The airport here is awesome but it just doesn't fly directly to many places -- everything is a connecting flight.  And I'm terrible at planning -- if it snows in Tahoe, I want to be able to make a Thursday night decision to take the kids skiing for the weekend.  That means picking them up at school at noon, driving 10 minutes across town right to the plane, getting on, and being in Truckee 1 hour later.

 

Driving to Truckee from Santa Barbara is a non-starter.  Flying commercial means getting a connecting flight in Los Angeles and then on to Reno, then we're still at least another hour from Truckee if we're lucky to get our bags right away.  So it's like a 4 or 5 hour trip probably counting the connections.  Maybe 6 hours including early checkin with security and all.  Compare that to just 1 hour on NetJets.

 

[benchmark]

I thought I would play lots of golf, travel on Netjets, and spend lots of time relaxing poolside in my new mansion as that is all easily in my budget.    What actually happened?  I live in a modest home, travel coach, and spend my time reading financial reports.

 

One of the shows I always hated was Lifestyles of the Rich and Famous.  Champagne days and caviar dreams.  Yuck!  That was a very tacky show.

 

At first I was mentioning NetJets metaphorically, but since moving to Santa Barbara I'm finding it to be practical (albeit very, very expensive).  The airport here is awesome but it just doesn't fly directly to many places -- everything is a connecting flight.  And I'm terrible at planning -- if it snows in Tahoe, I want to be able to make a Thursday night decision to take the kids skiing for the weekend.  That means picking them up at school at noon, driving 10 minutes across town right to the plane, getting on, and being in Truckee 1 hour later.

 

Driving to Truckee from Santa Barbara is a non-starter.  Flying commercial means getting a connecting flight in Los Angeles and then on to Reno, then we're still at least another hour from Truckee if we're lucky to get our bags right away.  So it's like a 4 or 5 hour trip probably counting the connections.  Maybe 6 hours including early checkin with security and all.  Compare that to just 1 hour on NetJets.

 

Move to SF, you can drive to Tahoe in 3 hours, a few friends do this every other week during the winter.

[alwaysinvert]

I thought I would play lots of golf, travel on Netjets, and spend lots of time relaxing poolside in my new mansion as that is all easily in my budget.    What actually happened?  I live in a modest home, travel coach, and spend my time reading financial reports.

 

One of the shows I always hated was Lifestyles of the Rich and Famous.  Champagne days and caviar dreams.  Yuck!  That was a very tacky show.

 

At first I was mentioning NetJets metaphorically, but since moving to Santa Barbara I'm finding it to be practical (albeit very, very expensive).  The airport here is awesome but it just doesn't fly directly to many places -- everything is a connecting flight.  And I'm terrible at planning -- if it snows in Tahoe, I want to be able to make a Thursday night decision to take the kids skiing for the weekend.  That means picking them up at school at noon, driving 10 minutes across town right to the plane, getting on, and being in Truckee 1 hour later.

 

Driving to Truckee from Santa Barbara is a non-starter.  Flying commercial means getting a connecting flight in Los Angeles and then on to Reno, then we're still at least another hour from Truckee if we're lucky to get our bags right away.  So it's like a 4 or 5 hour trip probably counting the connections.  Maybe 6 hours including early checkin with security and all.  Compare that to just 1 hour on NetJets.

 

That's great! Please keep us posted if you get a share or a time card of Net Jets.  I use to say, " If we get to X dollars, we'll get a jet or at least a time share in one.  Well, that turned out like Onyx' story.  We're now at 2X and still flying coach, although I have convinced my wife that it will be OK for us to spring for an extra $25 to get an exit row seat with more room.

F-k me, that's get to be a big X.

 

NetJets fractional interests start at $425,625 (price based on 2009 deliveries and subject to change) for a 1/16 interest (the equivalent of 50 hours of annual flying time) in a Hawker 400XP. Prices vary depending on the aircraft type you choose. Finance, lease and pre-owned alternatives are also available.

[jay21]

I have to stop reading this thread because I am getting too jealous.

 

I am still very young and I would love to be able to have enough money to invest full time.  My dream would be to manage money with one or two of my close friends, who I think are very bright.  Oh, and the NetJets must be pretty nice too.

[luck]

wow eric,

 

fantastic results!  wondering if you had to pick maybe five to ten equities - which ones you'd pick in the current environment?  from reading your previous posts, i believe you're bullish on bac, aig, mbia, and dell - but not sure if still.  thanks in advance.  keep on rocking.

[ERICOPOLY]

wow eric,

 

fantastic results!  wondering if you had to pick maybe five to ten equities - which ones you'd pick in the current environment?  from reading your previous posts, i believe you're bullish on bac, aig, mbia, and dell - but not sure if still.  thanks in advance.  keep on rocking.

 

My advice is to figure out who knows what they are talking about, listen to what they say, and use your reasoning and logic to determine if and when it is time to buy.  All the time gurus discuss their holdings and ideas.  The information is generally there but you have to buy what makes sense to you after looking at the logic.

 

Buffett talks about fat pitches but I think that's because he is a major league player.  I'm not, so I look for the "coach pitch/t-ball" plays. 

 

[ERICOPOLY]

I thought I would play lots of golf, travel on Netjets, and spend lots of time relaxing poolside in my new mansion as that is all easily in my budget.    What actually happened?  I live in a modest home, travel coach, and spend my time reading financial reports.

 

One of the shows I always hated was Lifestyles of the Rich and Famous.  Champagne days and caviar dreams.  Yuck!  That was a very tacky show.

 

At first I was mentioning NetJets metaphorically, but since moving to Santa Barbara I'm finding it to be practical (albeit very, very expensive).  The airport here is awesome but it just doesn't fly directly to many places -- everything is a connecting flight.  And I'm terrible at planning -- if it snows in Tahoe, I want to be able to make a Thursday night decision to take the kids skiing for the weekend.  That means picking them up at school at noon, driving 10 minutes across town right to the plane, getting on, and being in Truckee 1 hour later.

 

Driving to Truckee from Santa Barbara is a non-starter.  Flying commercial means getting a connecting flight in Los Angeles and then on to Reno, then we're still at least another hour from Truckee if we're lucky to get our bags right away.  So it's like a 4 or 5 hour trip probably counting the connections.  Maybe 6 hours including early checkin with security and all.  Compare that to just 1 hour on NetJets.

 

Move to SF, you can drive to Tahoe in 3 hours, a few friends do this every other week during the winter.

 

Oh to have been a fly on the wall listening to me venting and fuming with frustration when I told my wife that I wanted to move back to Los Altos Hills where I grew up, and her digging in her heels with refusal to live anywhere within close driving range of my parents.

 

So I lost that one and now we're isolated from all of the NorCal locations that I grew up loving.  But we live in a nice spot -- really nice.  It's just too long of a drive from anywhere else. 

 

[rjstc]

Ericopoly, I can see the real brains of the family is your wife. We moved 40 miles from Monterey to Santa Cruz and it was still to close to my wife's family.

[ERICOPOLY]

Ericopoly, I can see the real brains of the family is your wife. We moved 40 miles from Monterey to Santa Cruz and it was still to close to my wife's family.

 

My father married an assertive strong-willed woman and I did the same.  They are both Amazon women.

 

I will never be free.  I have money but I have no real decision making power.

 

[giofranchi]

The accumulation of wealth has become a discomfiting source of imbalance in my life, taking time away from other interesting persuits. 

 

Maybe it is true… But I also think that the so-called “accumulation of wealth” goes hand in hand with the accumulation of knowledge. Knowledge in its broadest meaning: psychology, (financial) history, accounting, strategic thinking, game theory, economic analysis, statistics, also science & technology, even fractal geometry!! (I am reading “The Fractalist: Memoir of a Scientific Maverick”) are all useful and worthy subjects to delve deeper and deeper into.

I find this constant process of self-improvement to be extremely fascinating. The outcome, growing richer and richer, isn’t bad either! ;D

 

giofranchi

 

[ERICOPOLY]

 

NetJets fractional interests start at $425,625 (price based on 2009 deliveries and subject to change) for a 1/16 interest (the equivalent of 50 hours of annual flying time) in a Hawker 400XP. Prices vary depending on the aircraft type you choose. Finance, lease and pre-owned alternatives are also available.

 

I was thinking about the Marquis Jet Card -- it's priced based on 25 hours to be used over 18 months.

 

It doesn't have to be a jet though -- in fact, there are many smaller airports (short runways) that I want to fly into that a jet just can't do.

 

My father had a Mooney that he kept at Palo Alto and we went camping all the time -- Hoopa, Lake Pillsbury, Eagle Lake, Truckee, Half Moon Bay. 

 

I'm just not confident that I would make a responsible pilot -- but maybe if I can find a retired Navy pilot living on a pension, and offer him some kind of deal where I pay him more than he could make in the Navy reserves, promise of no armed conflict, and he just needs to be on call (within respectful limits).  Then we can just rent a plane from the local flying club when we want to go.

 

[rjstc]

Ericopoly, I can see the real brains of the family is your wife. We moved 40 miles from Monterey to Santa Cruz and it was still to close to my wife's family.

 

My father married an assertive strong-willed woman and I did the same.  They are both Amazon women.

 

I will never be free.  I have money but I have no real decision making power.

 

 

+1