Here is the third conversation I had with stock picker Andrew Horowitz about the post WAMU/debate market and where it is headed. What to do? This chat is not produced and presented as-is for anyone who wants to listen in.

click ► to listen:


Right click here and select ‘Save Link As…’ to download the mp3 file.

previous conversation #2 here
previous conversation #1 here

  1. Buzz says:

    You want a stock from a company that sells something popular that it won’t run out of seasonally.

    Preferably, a company that needs to borrow little, if any, to produce and deliver its goods.

    If you can find one that is currently undervalued by anything that resembles an honest man, so much the better.

    And good luck with that last part.

  2. Ah_Yea says:

    This moment would be a buying short holiday if we had some type of crystal ball to see which company comes out on top in a couple years time.

    My crystal ball doesn’t work that well. It’s anyone’s guess who will still be around in a couple of years.

  3. The Commodore says:

    Gah, you know who will be around in a couple of years? Everyone that doesn’t panic. Just hunker down and sit tight folks, sheesh. If a major correction is coming, it’s just a buy opportunity.

    I will say this – perhaps it’s time to readjust our way of thinking about debt. A certain amount and kind of debt is necessary, but doesn’t it seem that we’ve become overly dependent upon the ability to borrow? And come to that, all we’ve been doing is ignoring the regulatory structures we put in place after the last depression, which have kept us out of trouble since then. It’s time to get away from the free-wheeling laissez faire economic policies and just sober up a little.

  4. Stefan says:

    People have to realize that this is only the beginning of a bad period on Wallstreet.

    Yes, maybe the financial sector is thru the worst, but the rest of the economy is still before the big blows. The collapse of the banks and the new high in unemployment numbers will sooner or later result in reduced consumer spending which means that companies won’t manage to reach their targets. I believe in the coming 6 months we will see a whole lot of earnings warning from companies like Apple or Intel.

  5. bob says:

    Haha! Loved the show!

    “Doing the robot”

  6. QB says:

    When in doubt, I find something boring that pays a dividend (e.g. pipeline). Or if you want to feel that your money is going into something a little more worthwhile why not try one of the Asian Microfinance Networks? You might get an honest return on investment.

    For example, the poorest women in India have payback rate 99.5% to SKS Microfinance. This is sort of thing that should make Wall Street investors hang their head in shame.

  7. brendal says:

    Energy is always a good choice…has been since ’74.

  8. Montanaguy says:

    I decided a year ago that going short was the place to be after reading this article:

    This guy was extremely prescient; nobody can say we weren’t warned, although I think our leaders in government snowed us.

  9. green says:

    A recent survey by ING found the top three things that would be hardest for people to give up during an economic downturn:

    Internet, cell phones, and television.

    Round those 3 investments off with some equity in Liquor and you have a depression proof portfolio.

  10. WallyG says:

    Where can I get the other 2 conversations?

  11. type horowitz in the search box

    [now linked above]

  12. Sumyunguy says:


  13. Jägermeister says:

    #11 – green – Internet, cell phones, and television.

    Round those 3 investments off with some equity in Liquor and you have a depression proof portfolio.

    Sounds about right.

  14. Mr. Fusion says:

    My two picks.

    Transportation is the safest sector.

    I’m looking for investors in a large, very high volume bridge on the East Coast.

    I can guarantee a return of at least 50% annually.

    Dictator Rescuing

    A lot of quick money can be had by getting on the ground floor.

  15. WallyG says:

    Thanks John,

    Found them…

    Great insight/commentary that even non-financial types can understand…

  16. Smartalix says:

    Advanced technology:

    Solid-State Lighting – anything with LEDs, especially incandescent-replacement stuff. OLEDs are coming into their own finally for illumination, but is still risk capital.

    Advanced semiconductors – Silicon Carbide and Gallium Nitride transistors perform better than their silicon counterparts. Major annoucements from International Rectifier and Cree came out this year on that topic. (BTW SiC-leader Cree is the leader in both advanced power semiconductor and LED markets.)

    Wireless and RFID – ’nuff said.

    Microelectronics and lab-on-chip technologies – MEMS has already made significant impact on the sensor industry, and is in the process of challenging the timing crystal and oscillator market. Lab-on-Chip and microfluidic tech will be big in a lot of sectors that would find advanced sensing or microscale processing very useful.

    Display technology – there are now a lot of ways to present information to people. Handheld devices need bright clear screens that consume very little power, oxymoronic in current tech. However, there are now reflective bistable technologies such as cholesteric LCD, e-paper, and iridescent that can give an easy-to-read (albeit monochrome at this point) image drawing little power. e-Ink and Kent displays are leaders here in the USA.

  17. Lou says:

    Head for the hills !
    Nice work W !

  18. Jim says:

    Well, according to Wiki, the robot originated in the 60’s, but MJackson made it a bit more famous when he did it.

    Of course if you want to continue with the conspiracy theme of the shorts, the only other thing the robot would imply would be to watch your stop orders.

    lol whacky conspiracy theorists. Tricks are for kids.

  19. lexpression says:

    Are you guys going to start a podcast feed for these discussions? Keep them up. You guys have a synergy.


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