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moneysense.ca, 27/04/09
The Atlantic Cover Story on Financial Survival
![[Front Cover of The Atlantic, May 2009]](http://www.canadiancapitalist.com/images/2009/the_atlantic_may_cover.jpg)
Jon Chevreau recently wrote a blog post on The Atlantic columnist Jeffrey Goldberg’s quest for sensible financial advice after finding that his broker had simply stopped calling him. The column, titled Why I Fired My Broker, takes a witty look at Wall Street and filled with great lines such as this:
I took a random walk down Wall Street and got hit by a bus.
Or this conversation that will remind you of shoeshine boys handing out stock tips:
Several years ago, I went to a party at a hedge-fund manager’s loft in Lower Manhattan. The elevator opened directly into the loft, which was as big as Mussolini’s office. An Austin Powers bed was parked to one side.
I left the party with a friend of mine, David Segal, who is now a business reporter at The New York Times. As we walked to the subway, he said, “You know, we should get one of those hedge funds.”
“Absolutely,” I said. “Where do we get one?”
“I don’t know. Maybe we can find one on the street. But we need one.”
“Yes, we do.”
When I think back on that conversation, I realize that it represents for me the apex of hedge-fund mania. Which is to say, when two reporters realize they should get into the hedge-fund business, it might be somewhat late to get into the hedge-fund business.
The column reminded me of that great satirical look at Wall Street that was first published in 1940 but still rings true today: Where are the Customers’ Yachts?. You should read it and check out the accompanying five-minute video.
moneysense.ca, 27/04/09







If we search a little, we would find number of people giving stock tips. If we digg more into them, we will scare by realizing how they fooling investors and making handsome money. If he had found an place like Mussolini’s office, some people have worth more than Berkshire Hathaway owned by Warren Buffett, by cheating people.
This is the world friends. People always trying to dig where they know water is available. There are no scarcity for cowards in the fund and stock sector. If people trying to be rich by investing, fund manager trying to utilize such people to become rich. Remember the truth of nature, one always being compost to another.
Sherin – The Money Maniac
I didn’t buy into the hedge fund craze, but I did buy into the private equity craze and of course got somewhat burned by it when the economy collapsed. Still, I attended a webinar yesterday that presented some interesting statistics regarding private companies… They gave some US statistics that showed:
99.7% of registered businesses are classified as Small & Medium Enterprises (SME)
1/2 of ALL private sector employees are employed by SMEs
97.3% of SMEs are exporters of goods and services
Back when I bought into some private equity funds, I didn’t know what the exact size of the non-publicly listed private sector economy but I suspected it was a massive untapped market. I just didn’t know how massive it was until yesterday’s webinar. Aren’t those interesting statistics?
I have an awesome idea – build a hedge fund and invest it all in S&P 500 ETFs. Then I simply charge a 2% management fee and 20% of the profits are shared with me.
I just need to hire some Ivy League PhD’s, and promote my strategy everywhere. I’m just going to call it something more exciting and it’l be something catchier..
@Phil: I’m not surprised at all. I think Preet wrote about this on his blog. I’m not convinced that SMEs are an investable market though.
@DGI: I think the hedge fund mania is over. Too bad, we should have launched his years ago and collected 2-and-20 fees.
IMO it’s hard (if not impossible) for individual to manage all risks of the stock market and economy (interest rates and inflation) to be guaranteed a reasonable income from retirement savings and until death. It’s very similar to the health care in terms of individual’s capability to meet unexpected expenses. Retirement income (pension) should be a responsability of the government who is the only one (given its taxing and money printing power) capable to cover a deficit.