Sneaker King [2015/12/7]

Mark "Mayor Farese has over 3,000 sneakers with an estimated value of $750,000.

Wow...well, I applaud his effort but hmm is it really worth it?

In terms of investment, I can't do a return calculation but assuming that sneakers behave like collectibles and art, then we would expect an annual return of 6%, a return below the market return about 8-10%. We also have to factor in the cost of storage, so returns are not fantastic. Also, if he is smart, he should have some insurance for the shoes so that would further lower the returns as well. So in terms of investment, sneakers do not seem to be a good investment.

But given that he made a career out of collecting sneakers, I guess the returns may actually be higher (we don't know his endorsement deals).

So the lesson here? If you want to collect something then go all in but remember it is a risky move financially but if you derive immense utility from that activity,your call.





Snapshot Serengeti

What I have learned today [2015/4/15]

1. IRS help desk is low on people. This is quite shocking because I would expect the Uncle Sam to do everything to collect taxes but I guess not.


2. Dang....74 million dollar worth of restricted stocks granted but valued at zero.
If that was the case, then the CEO should be indifferent about receiving the restricted stock or not...This is just really bad corporate governance practice....

3. Paulson defends that banking is a noble profession. I completely agree that banking is a noble profession but it has been tainted by mercenaries and skewed incentives.

4. Wow...the US spends combined 54% of taxes on military and health?! This is disturbing. The US has already the mightiest army in the history of humanity. Is the US trying to conquer Mars? I have high respect for the military but I think we can cut down a bit on the military. Wow! Health insurance, really? Better start a new health movement. Or start taxing high caloric foods more.



5. Greatest trading mistakes of great investors. I am always humbled by the humbleness of great investors. The ability to admit that one made a mistake is critical in investing :D If not the market will humble you....



*From Snapshot Serengeti