Wednesday, July 23, 2008

A Quote I'm Pondering...

From Brad Burnham at Union Square Ventures:

All of this means that you will see subtle changes in the way we invest our new fund. We will be even more selective about the early stage Web services we back, looking for compelling differentiation, a discrete market focus, and clear evidence of sustainable user growth. You will also see us invest selectively in later stage opportunities that we believe are poised to grow as more users become more dependent on the Web to manage their daily lives.
I concur...

Thursday, July 17, 2008

It's About Education, NOT Information

For investors, a proper education and investing framework should always trump access to "immediate information".

I know that automated information aggregation, synthesis and analysis is all the rage on Wall Street these days. Banks, traders and hedge funds are all jockeying to get the news first, fastest and interpreted in the most efficient manner.

But with the announcement that financial "intelligence" firm, Monitor110 will be shut down, it gives me reassurance that TickerHound's on education as opposed to information was the right path.

Case in Point:

This is currently the top headline on Yahoo! Finance (the largest financial portal on the web in terms of traffic):

Stocks trade higher on upbeat earnings results - Stocks are opening higher after stronger-than-expected quarterly results from names like Coca-Cola Co., JPMorgan Chase & Co. and United Technologies Corp. gave investors some reassurance about the health of the economy.

Ok, now if I were a regular Joe, I'd look at that headline and think, "Oh wow, looks like JP Morgan is pulling through and doing well despite all the turmoil in the financial markets."

But that wasn't the case at all.

In fact, the company's year-over-year profits were off by 53%!

And the comments from the company's CEO, Jamie Dimon, weren't particularly optimistic either:

"the economic environment to continue to be weak -- and to likely get weaker -- and for the capital markets to remain under stress." He added that "since substantial risks still remain on our balance sheet, these factors will likely affect our business for the remainder of the year or longer."
I don't know about you, but that doesn't sound very encouraging to me.

But the stock still rallied - all because analysts expected JP to do even worse than they did!

Trying to trade stocks based on the assumption that "maybe this company won't do as bad as everyone thinks", is a sucker's game. The media creates headlines like this to get people to read their articles and watch their TV shows...fuck that!

Investors need to tune out and rely on their own experience and their own education to make money in this market.

Mr. Dimon pretty much said, "things aint gonna get better for a while now, so don't expect much from us." The CEO of a company says that and what I really hear is, "Hey, don't buy our stock right now, you can buy it later this year for much cheaper."

Education, not information my this bear market, don't let it play you!

Saturday, July 5, 2008

And I'm Back!

For those who don't know, I haven't been "State side" for the last few weeks.

I've been in China hanging out with Yao Ming and his crew preparing for the Olympics.

Ok, maybe it wasn't Yao Ming, but I was definitely hanging out hard in the Middle Kingdom with some old friends. I have plenty of pictures on the way, so sit tight.

All in all it was a great trip. I managed to eat food from over 10 different provinces, drink alcohol from over 15 countries and gain 10 lbs. in the process!

I even managed to get some work done. You can now see TickerHound prominently featured on's Question of the Day.

This is our 2nd widget partnership with many more on the way throughout the summer.

I hope everyone's having a great 4th of July weekend and I'll be back Monday with my first set of pics!