Monday, December 10, 2007

Google

I graduated form college back in May, and since grad school doesn't start until January, I've had ample time to indulge in one of my passions- the stock market.

I started getting serious about stocks about this time last year. As a Christmas gift I even asked my parents for cash so I could open an online brokerage account. Since, I have read numerous investment books (everything from Graham to Cramer), spent many nights reading about monetary policy and other macroeconomic factors, and now find myself watching CNBC far more than I should (notice the post below about Erin Burnett).

If I can share one piece of advice, it would be to buy Google stock. Yea it trades for 720 bucks a share and yes everyone and their mother knows about it, but this is something really special. Even if you're not into stocks (but at least know what a stock is) you've probably asked your parents, "Why didn't you buy Microsoft stock years ago!?...we'd be rich!" Well, here is the opportunity to have a rebuttal to that question years from now.

The following are examples of three companies who I think Google will have similar lives to. I did a little research and figured what $10k invested twenty years ago in these three companies would be worth today:

Berkshire Hathaway.
Stock price Jan 1, 1988 = $3150.
Today's closing price = $149000.
Annualized return = 21.27%
$10k invested 20 years ago is worth: $473224.86

Microsoft (Numbers adjusted for stock splits).
Stock price Jan 1, 1988 = $0.39
Today's closing price = $34.76
Annualized return = 25.17%
$10k invested 20 years ago is worth: $891261.29
**Note: This stock peaked in '00 around $55, which translated into a 51.05% return over those 12 years. That 10k was worth $1410745.77 in '00.

Wal-Mart (Adjusted for stock splits).
Stock price Jan 1, 1988 = $3.41
Today's closing price = $49.43
Annualized return = 14.30%
10k invested 20 years ago is worth: $144852.04
**Note: Peaked in '00 around $69. You do the math...

These aren't even the biggest winners of all time, I only chose these because they are household names. Just in the last 5 years you could have matched these gains by investing $10k into Apple or Research in Motion. But my point is, Google has the chance to be that stock everyone wishes they had bought years ago. The current price may seem expensive, and it is at $720!, but it seemed expensive when it IPOed at $75 and it seemed expensive when I bought it at $500 and it'll be expensive when it's trading at $1000 and beyond. But considering the remaining growth potential Google has by increasing their market share of the $600billion/year advertising industry, the fact that Google will probably end up taking over the wireless market (once its done taking over the internet of course), and that the word 'Google' has worked its way into the lexicon of every language in the modernized world, there is no reason not to own a part of it. If you don't do it for yourself at least do it for your kids.

Wednesday, December 5, 2007

Tuesday Night Lights

Normally Tuesdays are reserved for my weekly dose of Nip/Tuck. But last night I was forced to employ the trusty Tivo and shoot that up later. Instead I (and my dad too) watched the Victoria Secret fashion show. And as gay as that sounds, believe me, it's not. To prove that, let me introduce you to Alessandra Ambrosio, Miranda Kerr, and the mother of all supermodels, Adriana Lima:





Yea, exactly. For an hour these hotties flaunted their bodies as they modeled bikinis, bras, and a bunch of other clothing I didn't take much notice to. The cameras frequently scanned the celebrity filled crowd and each time the faces of people like Jeremy Piven (aka Ari Gold from "Entourage") had their jaws dropped to the ground-- desperately in need of a drool cup.

However, my cable went out about forty minutes into the show. Not surprisingly though, because Comcast is the worst cable provider ever. Every three weeks or so, and seemingly at the most inopportune times, there is an "outage in the area." ...Or so says the recording when I call the 800 number for service. But everything comes full-circle. Just today Comcast stock plunged 12% on news their revenue will drop and expenses will rise due to increasing competition. I haven't been following this particular stock, but I'm not surprised. I bet DirectTV customers got the full hour of these girls. Must have been nice.

Sunday, December 2, 2007

Human beings behaving humanly-brilliant



This is by far my favorite Geico commercial of the series.

Saturday, December 1, 2007

DMB

I wonder which is more rare. Getting struck by lightning while being mauled by a shark, or spending a day with me when I don't play or (at least) allude to a Dave Matthews Band song.

I started listening to DMB during my senior year of high school. Ironically enough, my sister (ironically because she is NOT a fan...at all) introduced me to the band. Fate brought me across a cast away mix CD that was lying around her room. And always open to hear new music I gave it a play. Seconds later the fetching sound of a snare drum setting the beat for the inevitable break out resounded. The song was Ants Marching, the impetus to my new obsession.

I guess I understand why some people don't like their music. Dave's voice can be a bit raspy at times and others dislike the overriding jazz/jam-band influences. But to me there is nothing better. Carter Beauford's drumming is world class, Stephan Lessard's bass lines are original, and LeRoi Moore and Boyd Tinsley have equally sick solos on their respective instruments. Then there's Dave. The glue and backbone of one of the most popular and iconic bands of our time. Dave's guitar playing is effortless, his lyricism matched by few, and his funky showmanship draws some of the biggest concert crowds.

I haven't come across many things that are so fitting during any situation. Whether you're happy, sad, high, low, feeling hyper or laid back, there is always a song to fit your mood. Dave stresses the "autonomy of art" with his music. That rule states that when you, the artist, release your work it no longer belongs to you-- its meaning is left up to the viewer. Too many bands try getting you to feel what they felt when they created their songs. Dave says, don't worry about what it means to me. What really matters is what it means to you.

Friday, November 30, 2007

Erin Burnett

Meet Erin Burnett. The stunningly smart and beautiful anchor of "Squawk on the Street" and "Street Signs" on CNBC.

It's no secret that CNBC hires fine girls to host their shows. That's business. Viewers are bound to stay tunned if they like what they're seeing. And what could be hotter than a gorgeous woman talking stocks? The perfect formula to attract the young up-and-comers and the balding middle aged.

Erin isn't alone. Trish Regan, Rebbecca Jarvis, Maria Bartiromo--they all are smart, sexy and somewhat likable anchors. However, Erin is different. The others seem like "that girl." You know who I'm talking about. That girl that always raised her hand to answer all the questions in Intro to Finance. That girl who appropriately color codes her excel sheets to match the current season. That girl--the bitch

Erin radiates a different feel- to be cliche, she's "the girl next door." Despite that she flies on corporate jets to meet CEOs in Dubai and takes lunch with billionaires, oil barons, and presidents, I sense (thought maybe dead wrong) a genuineness and humbleness about her. What's more, I love that she hails from a small town. She probably finds herself walking down Broadway feeling completely at home amidst the lurching sky scrappers and entrenching bright lights, yet still missing the simplicity of her small town. She then carries on, coyly thinking how badass she is. And how deservingly so.

Erin Burnett, will you marry me?

Thursday, November 29, 2007

Free Rice


Free Rice is an online charity that allows users to donate rice by correctly answering vocabulary questions. The Free Rice campaign offers an online vocab game that prompts the user with a word then four possible meanings--one, of course, being the correct meaning. A computer program tracks the level each user is most comfortable at--from beginners just learning English to a level for the most scholarly professors. Free Rice donates 20 grains of rice for every word correctly matched. In return, the game is aimed at providing users with vocabulary practice that fortifies their understanding of the English language.

To fund this program, Free Rice offers advertising space on each elapsing screen of the game. The more you play, the more advertisers pay, and the more rice they are able to purchase. The rice is then sent to the United Nations World Food Program and is distributed to those in need. On Nov. 28th, 2007 there were 369,007,280 grains of rice donated. The amount of rice donated per day has risen exponentially since its inception on Oct. 7th, 2007.

Here we go again

Last time I got an urge to write I began a web site. It wasn't a bad idea until I became bored with it. So much so I can't remember the user name and password to log in even if I did have the inclination to update the damed site. Naturally, I can't promise the same won't amount here. I think my poison last time was not giving myself a broad enough beat. That site was for me to write about business, and my affinity toward that topic hasn't swayed, but I feel there are other topics that need mentioning, but have no home on that page.

So here we go again.