Thursday, January 8, 2015

Chimera?

In another context, related to the theme of tru'eng, we used "chimera" to describe some of the aspects of the markets that have so many ideological problems, such as the cause of bifurcations, etc.  This post, basically, is to demonstrate awareness (as in, the blogger not being a raving idiot as some of those talking heads seem to act like) that many (very?) make oodles in that context, albeit to the chagrin of the insightful (as in, lots of the gains are pocket picking, pure and simple).

What we need to show is that many more (the vast majority) make little to nothing from the reality of money. Remember, there are billions of persons on the planet. Those with accumulations greater than 6 figures (using current US bucks) is in the millions, and, even if these might be in the 100s of millions (which they are not), it is still a small percentage.

So, what to do? Well, finance, and its gaming, are only one piece of our bailiwick. And, we are interested due to misuse of mathematics and computation. Of course, it is our duty to show wherewith we speak. Want to follow? Stick around longer than a few minutes or even months.

The data (comes from a firm who shares it wherewithal who reported recently - seen on the web on 01/07/2015).



Company

Percent
Increase



Since
Baidu (BIDU)     2,840    2006  
Keurig Green Mountain (GMCR) 1,507   2009  
Intuitive Surgical (ISRG) 1,072   2005  
Vertex Pharmaceuticals (VRTX) 1,025 2005  
Chipotle Mexican Grill (CMG) 995 2007  
Salesforce.com (CRM) 769 2009  
Catamaran (CTRX) 858 2009  
Tesla Motors (TSLA) 678 2011  
Zillow (Z) 318 2012  
BofI Holding (BOFI) 203 2012  
Facebook (FB) 235 2012  
Trex Company (TREX) 211 2012  
Ambarella (AMBA) 188 2013  
Stratasys (SSYS) 115 2012  

Several things are obvious. Holding long can (not necessarily, that is the trick) make someone money. Warren, and others, showed that. Too, the longer, the higher the increase. The problem, though, is that one huge factor in the retrieval is price at sale. Selling can lower price, for one thing. Too, trying to time so as to get your "gains" is another (brains all the way back to Bohr and before have told us that).

But, there are several things to discuss here. Arguing that liquidity requires playing game with people trying to invest is way off the mark, ethically and a lot of other ways. Arguable? Not if one really cares about a sustainable economy.

Remarks:   Modified: 01/15/2015

01/09/2015 -- Dow Jones: 33% of companies claim to have lost business to unethical competitors. Goes along with the chimera coming from charades (intentional and otherwise).

01/14/2015 -- Chimera and charade? One example.

01/15/2015 -- At last, a series that will establish the basis and extensions, as required. We are going to go back to some simple and come forward to the modern, complicated economy. Why? My long chain of ancestors (inherited via Prof. Lucio Arteaga) is one motivation.

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