Cat Stevens

It's not time to make a change, your so young its not your fault, find a girl settle down........

http://www.youtube.com/watch?v=Q29YR5-t3gg&feature=related

Well lets pull our heads in and not go to far but I have had my first bullish sign in years. But like mum in a toy store, I still aint buying.

I made a stock list today, kind of a watch list and trust me the only thing I have watched in the last 2 years are horse races and girls. So I thought I don't want stocks that need to roll over debt in atleast 2yrs maybe 3, have little debt, cashed up, and sell something that in years to come should still have a need, ah if only brothels were listed on an exchange.

Well I found 10 and 8 were tech stocks which then got me started on the subject of diversification a common requirement for an investor that doesn't know what there doing. You see to diversify is to spread risk and that's where I raised my hand in economics. I still remember that day it was 40degrees and our lecturer was sweating like a hooded first time rapist. Well I asked in class if I'm a fund manager and paid to research and invest why should I feel the need to diversify is it because I'm no good and don't have conviction in my thoughts. No he said its to spread risk. I left the class puzzled and to a degree I still em. Anyway the point here is if your good don't diversify, if I find stocks that are worth investing in and they are largely tech then why should I not just own them. I'm in this to make money not to limit risk, by being smart you limit risk, by understanding who you are and how your emotions take over than you have limited risk. Oh and how about fund of funds don't get me started on these fees of fees.

Which brings me to a recent discussion on Bernie and how he was the blame for the 50billion scandal. Well I felt like a guy that walked into a lesbian birthday party when I said, what did he do wrong. Why is he at fault, we have had criminals since Adam bit the apple and I hate to tell ya were gonna have them in the future as well, and I should know as my country Australia was built on criminals, an entire nation built on chicken theives. Put humans and cash together and you don't always get gravy. So Bernie wasn't the issue I was trying to point out, it was the system, the fund of funds due dilligence or lack of, the SEC and so on not Bernie, actually he has educated us opened our eyes to a poorly run system. But that won't stop me from making my watch list of stocks, they say do accounting and economics to understand stocks and scrutinise a balance sheet, I say do phycology understand humans first and put that in a risk model.

Giddy up