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Saturday, October 13, 2007

Is This Really Old-Fashioned Investing?

I was recently accused of being an old-fashioned investor. I was proud to own up to that fact in this response:

You are right I am a long term investor. I bought a serious amount of Apple (AAPL) in early 2004 and on dips since. That whole position is up over 300%. And some old T Rowe Price funds back in 2004, PRMSX and PRLAX, again only up a few hundred percent. You're certainly on the money I bought old fashioned VZ early last December, that position's only up 37%, I should sell it and continue to buy more IFCAX, that fund has been a wild ride. Some very old JNJ and BAC positions keep sending me bigger and bigger dividend checks every quarter. My India funds including IIF and IFN are up 70% since I took 'em on board. You are also dead on in that I could have retired anytime in the last ten years without depending on Social Security or a pension, can you say that?

I like Hon Hai in Taiwan and Posco (PKX) in Korea, my investments there are all up over a hundred percent.
Seoul Korea Congestion
This kind of experience makes me extremely sensitive to firms like Beacon Power Corp with a -1255% Net Profit Margin. This whole flywheel-based energy storage scheme is a little shaky as far as technology ideas go. I mean the ancient Romans and Chinese used flywheels to throw pottery thousands of years ago. This is not exactly bleeding-edge technology here. Flywheels are in use all over the place including an old wrist watch I once owned.

A few years working in a patent law office taught me to be extremely cautious about certain things like perpetual motion machines and flywheel schemes. Nevertheless Beacon Power Corp. could do all sorts of lucrative things with their particular flywheels. I'll still take my rapidly growing ICICI Bank (IBN) investment since 2005 any day of the week.
Monk, Bihar, India 002
I see the future taking place not only here in America with firms like Apple (AAPL) or Broadcom (BRCM) but especially in Brazil (PBR, RIO) and throughout Latin America (AMX), which is also part of America last time I checked my globe.

Russia and Asia contain some real fast growing economies, except maybe Japan and Burma. Australia's mining firms have been fun as have some New Zealand resource stocks.

For now Beacon Power Corp (BCON), even at 134% YTD, remains too undocumented for me. Give them time to start production somewhere. Enjoy.

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