A SLOW MONDAY IN A FAST MONTH

Finally got the yard mowed (with a push mower since the blades on the riding mower need sharpening). Trimmed the hedge, burned the big pile of limbs in the drive, got some paperwork done, yard is starting to look much better. Took little "Grace Kelly" to the pond to let her shoot a pistol, she didn't like how loud it was. Picked up the mail and prescriptions. Not bad for a day that didn't get started till nearly noon. The day seemed slow and easy, but the month is flying by! Meanwhile Warren Buffett gives away 37.1 billion dollars, this wasn't his entire networth...just "cash" that he was burdened with finding appropriate investments for.

Not too much personal news today so I'll divert to something in school called "current events" that I thought was interesting. This is just some of the stuff I found interesting out of quite a few articles I reviewed about Warren Buffett today

How did he make that kind of money? Quick answer...business-wisdom in the stock market. His philosophy/mentor/foundation of thinking can be learned from reading Benjamin Graham's books like "The Intelligent Investor" which reinforced the importance of value investing and going after stocks that are undervalued , so he doesn't go for the stuff like internet dotcom he goes for the Coca-Colas, even today. Since he was rejected from Harvard , Buffett studied Economics at New York's Columbia University, to learn from his idol Graham, and eventually become his protégé. Working with Graham as his mentor turned out to be a life-altering decision.

His portfolio is filled up with stocks in solid companies that were undervalued, and inexpensive at the time. By sticking with companies such as Coca-Cola, American Express, Gillette, The Washington Post Company, Wells Fargo and Company, Sees Candy, Benjamin Moore & Co., GEICO Direct , General & Cologne Re Group, and Dairy Queen. , ...companies with solid brand names rather than the latest Wall Street trend, he has become one of the wealthiest men in the United States.

In a news conference he did warn about the overvalued real estate and that pharmaceutical stocks are in a state of flux and too hard to predict , & that GM and Ford face severe trouble over pension and health costs.

One thing I got from his speech was pretty basic, if you are spending even a small percent each year more than you produce.."that scenario can't end well."

On investments right now he said..."If you had to make a choice between long-term bonds at around 4.5 percent and equities for the next 20 years, I would certainly prefer equities. But if people think they can earn more than 6-7 percent a year, they're making a big mistake. I don't think we're in bubble-type valuations in equities -- or anywhere close to bargain valuations. If you told me I had to go away for 20 years, I would rather take an index fund over long-term bonds. You'll get a chance to do something extremely intelligent with your money in the next few years. But right now there doesn't seem to be a clear enough direction to conclude anything dramatic."

A quote for the day...

On the urgency of fixing problems NOW before bad things happen, I like what his vice chairman Charles Munger said "...Some people seem to think there's no trouble just because it hasn't happened yet. If you jump out the window at the 42nd floor and you're still doing fine as you pass the 27th floor, that doesn't mean you don't have a serious problem..."