Don't Talk To Cops - Very Interesting Videos

Don't Talk To Cops, Part I http://www.youtube.com/watch?v=i8z7NC5sgik Don't Talk To Cops, Part 2 http://www.youtube.com/watch?v=08fZQWjDVKE

Remember that there will not be a western surety company there to insure you if the cops are questing you. So keep your 5th amendment in mind!

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Ode to Forgetfulness

http://www.youtube.com/watch_popup?v=7lSliucgygc

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Example of A Disruptive Business

From a business and investment perspective, the most interesting businesses are those that are disrupting their industry by totally destroying the pricing models.

Usually, the talk is about digital delivery pushing the price of bit-based products (e.g. music, information, or movies) towards $0. But, it really becomes interesting when disruption happens in mature industries dealing with physical products.

Here's a stunning example - Zenni Optical. They are destroying the pricing structure for eyeglasses. They can offer a high-quality pair for much less than their competitors can touch. In fact, according to this article on Zenni Optical, they can offer eyeglasses for as low as $8!

They have three advantages:

1. They deal directly over the internet with retail customers, and rely primarily on word of mouth from satisfied customers.

2. They take advantage of a "flat" world and contract out manufacturing to high-quality labs in lower-cost countries.

3. They only carry their own line of frames.

Zenni isn't for everyone. They are not right for people who want designer frames or one hour delivery. Since their labs aren't local, it takes time before your glasses can be delivered.

However, these people are probably not Zenni's targeted demographics. They are going for people who put a priority on good quality, but low priced, eye wear.

This is an example of the free market at its best because they are making money by satisfying a need and helping an under-served market.

We usually think of companies like Google as revolutionizing the world - not a maker of eye glasses. But, while it's true that Zenni isn't changing the whole world, they are probably impacting many individuals - such as a low income student who will now succeed at school because he or she can now afford glasses. Down the road, if this person becomes a doctor or scientist, then society will have benefited.

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Warren Buffett Quote

"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently."

— Warren Buffett: CEO, Berkshire Hathaway, philanthropist.

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Your Tax Money at Work...

Secret Senate Hideaways: http://news.yahoo.com/s/ap/us_senate_hideaways "They bear room numbers but no names. Some are hidden in plain sight, along corridors used by thousands of unknowing tourists. The portals to others hide beyond massive statues." "Those occupied by such senior senators as Robert Byrd, D-W.Va., and Patrick Leahy, D-Vt., tend to be grand affairs, with bathrooms, fireplaces, chandeliers and million-dollar views of the Washington and Lincoln Memorials or the Supreme Court"

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Using A Short-Term Bond Fund to Park My Cash

As I stated in a previous post, my portfolio had a large 44% gain for 2009.
Stock Trading Riches" system and re-balanced each position, I ended up generating a lot of cash for the cash pool.

As I've also stated before, I'm happy using Scottrade as my broker*. However, they do not offer a money market "sweep account", and are only offering .15% on cash balances.

They do offer no-load mutual funds with no commission, so I parked my cash in AALPX, which is the American Beacon Short Term bond fund. They returned 5.17% last year, and have a 5 year average return of 3.68%. They invest in fixed income with a duration of 1 to 3 years.

* If you want to open a Scottrade account, use referral code ZNTJ5666 to get three free trades.

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Bunny and Snake

Once upon a time, in a nice little forest, there lived an orphaned bunny and an orphaned snake. By a surprising coincidence, both were blind from birth. one day, the bunny was hopping through the forest, and the snake was slithering ahead of him, when the bunny tripped over the snake and fell down. This, of course, knocked the snake about quite a bit. "Oh, my," said the bunny, "I'm terribly sorry. I didn't mean to hurt you. I've been blind since birth, so, I can't see where I'm going. In fact, since I'm also an orphan, I don't even know what I am." "It's quite ok," replied the snake. "Actually, my story is the same as yours. I too have been blind since birth, and also never knew my mother. Tell you what, maybe I could slither all over you, and work out what you are so at least you'll have that going for you." "Oh, that would be wonderful" replied the bunny. So the snake slithered all over the bunny, and said, "Well, you're covered with soft fur, you have really long ears, your nose twitches, and you have a soft cottony tail. I'd say that you must be a bunny rabbit." "Oh, thank you, thank you," cried the bunny, in obvious excitement. The bunny suggested to the snake, "Maybe I could feel you all over with my paw, and help you the same way that you've helped me." So the bunny felt the snake all over, and remarked, "Well, you're smooth and slippery, and you have a forked tongue, no backbone and no balls. I'd say you must be a supervisor, a management consultant or someone in senior management."

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