< meta name="DC.Date.Valid.End" content="20050825"> Amendment Nine: James Glassman

Monday, December 06, 2004

James Glassman

This guy cracks me up. What I find most amusing are his "calculations" which apparently "prove" that stocks are always better than bonds over the long run. He goes on to pump (yet again) the "fifteen keepers" from his book. Equally weighted his "keepers" supposedly returned 17% over the last five years. But he "glasses" over (thats a new phrase by me, it means "to bullshit, yet again, with little explanation") that the bulk of this 17% return was accrured by a handful of his "keepers". The second biggest gainer was 78% returning RPM Intnl. Pretty good. Not nearly as good though as the top gainer, which he slides in there, hoping to "glass over" it. Whats the greatest return generated? He doesn't say, but he gives us the name: Landauer. I just pulled it up on Bloomberg and guess what, this time five years ago a share of Landauer (who makes radiation detectors) would run you $18.50. Now? Well, after 9/11 and the series of press releases and orange alerts from the Homeland Security Dept, Landauer will run you $48.58. Quick math here, but that looks like a whopping 262% increase in five years. Nice dart throwing Glass!

The 17% return Glassies fifteen "keepers" give you over five years pales in comparison to what us vultures have been delivering over the past five years courtesy of the Bush recession and bankruptcy laws . And guess what we primarily invest in? Those silly, ol' fashioned "bonds". Apparently the little things called "rights" that bondholders get are of know economic benefit whatsoever to Glassie et al. But hey, what am I bitching about? I'm a value investor! I'm waiting for Google to be at 80 times cash.