BUY LOW

This photo shows almost the ENTIRETY of Microsoft in 1978.  In 2012, the company had 94,400 employees.  Microsoft was founded in 1975 but didn’t go PUBLIC until 11 years later.  In between, a lot of people had a chance to invest in Microsoft – to buy shares cheaply.  Those who BELIEVED did, but those who didn’t believe, just shrugged and stayed happy with what they had.  They probably thought the company would stay small.  Would you have invested in these young people?  How much of your money would you have risked?  Of course, when you are an insider you can see things a lot more easily.  From the outside, you hardly see anything other than reports.  The insiders saw how much effort the people in charge at Microsoft put into the business.  By the look of things, it was bound to succeed so the insiders had NO EXCUSE for not buying stock in the company.  

Santa Anna Bonds

We had a client recently to whom we offered 600 million for one Santa Anna bond he owned and he DECLINED the offer. Figure that one out if you can. He came back later to accept the deal but it was too late - our buyer had gone elsewhere. Live and learn.