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RealMoney.com: James Altucher
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RealMoney's Blog Watch

By James Altucher
RealMoney.com Contributor

9/17/2005 8:00 AM EDT
 

There are about 10 million blogs out there, and it's hard to sift through them all and find the gems. But I keep track of some of my favorite posts each week and will share them on RealMoney.



At Willisms, Will Franklin provides a nice summary of recent economic data and why our $11 trillion economy will be able to handle the $200 billion-plus costs of Katrina.

The launch of Google Blog Search calls the business models of the other search engines in the blog search arena, such as Ice Rocket, Technorati and Blog Pulse into question. Various "meta blogs" (blogs about blogging) are offering some nice comparisons between the different search engines:

At Burnham's Beat, venture capitalist Bill Burnham writes about when to catch a falling knife. He's not talking about buying stocks that are falling, but when to support a VC investment that has fallen on hard times. He gives several criteria that can help navigate when to wind down a foundering investment or when to throw good money after bad.

As an aside, I started a VC firm in 2000. It was a hard time to start a tech-based VC firm, and Burnham's post rings true on several points.

Also on the VC front, but related to the recent eBay-Skype news, uberVC Steve Jurvetson of Draper, Fisher, Jurvetson continues to crack me up on The J Curve. I can never tell if his posts are serious or kidding: "On my flight to Estonia for a Skype board meeting, I was reading my usual geek fare, such as Matt Ridley's Nature Via Nurture, a wonderful synthesis of phylogenetic inertia, nested genetic promoter feedback loops, bisexual bonobo sisterhoods, and the arrested development of domesticated animals."

Just noted this post by Joe Kraus, one of the founders of Excite, on why it's better to be an entrepreneur now than in the mid-1990s.

The 10b-5 daily weighs in on the legal principles behind Ellison's $100 million settlement on insider trading.

Daily Dose of Optimism has a quote from a lecture Buffett gave where he points out how everyone involved in the American Motors offering of shares in 1969 has disappeared from Wall Street. Part of the quote:

I want to show you an ad that ran June 16, 1969, advertising the sale of 1,000,000 shares of American Motors. This is a reproduction from the Wall Street Journal that day. Now does anybody notice anything unusual about that ad? Everybody in that ad has disappeared. There are 37 investment bankers that sold that issue, plus American Motors, and they are all gone. Maybe that's why they call them "tombstone ads.

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James Altucher is a managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds. He is also the author of Trade Like a Hedge Fund and Trade Like Warren Buffett. At the time of publication, neither Altucher nor his fund had a position in any of the securities mentioned in this column, although positions may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback; click here to send him an email.

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