Capital Ideas

Finance: Periodic table of investments for 2006

2007-01-15T11:42:00.000-08:00

The Periodic Table of Investments was just updated for 2006. To me, this chart demonstrates the difficulty of predicting investment returns by asset class. What's hot one year (or for a few years in a row) may be a bust the next year. Check out the boring old bond index (LBB Agg) that is pretty sedate most years, but jumped up to the top during 2000-2002 when equities were not doing so well. Just another argument for a balanced, diversified portfolio of index funds.

News: German farmer raises giant rabbits for N. Korea

2007-01-14T11:33:00.000-08:00

There's a story over at Spiegel regarding a German farmer who is raising gianormous rabbits to use as a food source in North Korea. Thank goodness we have the internet to bring us gems like this.

On a related note, I discovered that this plan may need a little more work. There's a disease called rabbit starvation which is malnutrition due to the over-consumption of lean meat, as you would find in rabbits. A little roast Thumper won't hurt you, but you can't live on it.

Wine: Thinking outside the cardboard

2007-01-13T16:28:00.000-08:00

There's an article in the NYT today about the Bag-in-Box Wine Dispenser. Will this be enough to make box wine palatable? Will vintners actually start producing drinkable wines in boxes? Seems like a chicken-and-the-egg type problem.

If you can get past its reputation, there's a lot to be said for the concept of wine in a box. First, it does a great job of protecting the contents from light during storage. Once you open it, there's no chance that air is going to get in and start oxidizing the wine if you want to keep it around for a few days (a consistent problem with bottles). And ffom an environmental perspective, the packaging breaks down easier than a glass bottle (which requires proper recycling). I could make similar arguments in favor of the screw-top wine bottle (viva la convenience), but I have the feeling we'll be seeing corks in glass bottles for a long time to come.

Movies: Superman Returns

2007-01-12T19:33:00.000-08:00

This was a bit of a letdown. I didn't feel any connection with Superman and it seemed like his personality was visiting another planet throughout the movie. I don't even think he had more than a page or two of total dialog from start to finish. Lois Lane was shrill and annoying. And right off the bat, I found the premise to be disconnected from the other Superman movies (granted, it's been a while since I've seen them, but still). The action sequences were formulaic at best, and too drawn out. One high point was Kevin Spacey as Lex Luthor, the only decent character in the whole show.

Tech: iPhone

2007-01-11T19:24:00.000-08:00

It never fails - a week after getting my new cell phone and signing a 2 year contract, they announce the iPhone. It certainly looks like it could be a hit, although I'm not sure how well the 100% touch screen will work, seems like it would be subject to damage and scratches. Still, a very cool integration concept with links to Google maps, digital photos, MP3s, and everything else under the Apple sun.

Then again, I doubt I could justify the $500 price of the iPhone versus the phone I got for free after rebate from Amazon/Cingular. And mine already has a 4GB MP3 player in it, with a smaller form factor. Do I really want to carry around such a large rectangular cell phone, even if it does have a picture of a clown fish in a sea anemone on the front of it?

Tech: Sony Ericsson W810i cell phone

2007-01-10T21:17:00.000-08:00

I've been waiting to get a new cell phone for a while, but hadn't been able to find the right combination of features at a decent price. Since I was out of my contract with AT&T Wireless (since purchased by Cingular) I thought it was stupid to pay $200 for a new phone since I was going to have to get a new contract anyway (as part of Cingular's required conversion). But Cingular wouldn't cut me a break, so I held off. And now I've just heard that they're changing their name back to AT&T, but that's another story.

So over the Christmas break my current phone, a Nokia 6200, started to act funny, the screen would go blank randomly, and other problems. It had been pretty reliable to this point, but was now over 2 years old and since it replaced my land line, it has seen its share of use/abuse. Finally time to bite the bullet and get something new.

I headed to FatWallet and found a great deal on a Sony Ericsson W810i from Amazon. Only $25, with a $25 rebate. This deal had formerly been reserved for new activations, but they recently changed the promotion, so I was eligble for the discount even though I was technically a current customer.

Then I picked up a Sandisk 4GB Memory Stick (stupid proprietary hardware formats) on sale at Fry's for $90 less a $20 rebate to load up the MP3s for jogging. Then a Jabra BT125 bluetooth headset on sale at Best Buy for $30. It's not the top of the line, but perfectly acceptable for the occasional hands-free call.

So far, I've been pretty impresed with it. Call quality is good and MP3 playback is also nice. The interface isn't as slick as an iPod, but I'm willing to make some sacrifices in the name of one less gadget. The 2MP camera is also decent, although it's really only useful in well-lit environments. There is a small flash but it's range is no more than about 5 feet.

Movies: Snakes on a Plane

2007-01-07T20:06:00.000-08:00

Calling this flick a "B-movie" is an insult to B-movies everywhere. I shouldn't be surprised...I mean, what did I expect? The title summarizes the plot from exposition to denouement, everything else in this movie is just details, details, details. I wish I could say that it was at least an entertaining mindless action flick (there's nothing wrong with those) but even that would be stretching it.

Anyone who paid $8/person to see this in the theater, you have my condolences.

MBA: School extends your life

2007-01-04T09:03:00.000-08:00

The New York Times published an article today on the research linking a longer life to increased education. Not sure I'm convinced that causation has really been proven or if there is some more sinister form of bias at work, but it is an interesting correlation. At the very least, this makes me feel even better about going back to school later this year - who knew the university was a veritable fountain of youth?

Food: Cool River Cafe

2007-01-03T19:02:00.000-08:00

I had lunch at the Cool River Cafe earlier this week. Overall, it's a really nice restaurant with a great wine selection. Unfortunately, I wasn't blown away by my dish: Denver Venison with Lingonberry Sauce with horseradish potatoes and asparagus. The meat was cooked just right and had a slighly "gamey" flavor to it, as one would expect from venison, but it had been over-seasoned with black pepper. This brought back a memory of the last time I dined there in mid-2005 when my meal was similarly over-seasoned. Maybe it's just their style. The potatoes had a nice, subtle horseradish flavor (it would have been easy to overdo the horseradish, but they got it just right). However, the potatoes were only lukewarm by the time my plate arrived. The asparagus was the high point of the meal, perfectly cooked through but still crisp and carrying a great smoky grill flavor.

At the end of the day, if someone is going to charge $22 for a lunch dish (granted, it was large enough to be a dinner portion), I think they should set the bar a little higher.

Culture: College football coach offered $40 million

2007-01-02T16:31:00.002-08:00

I really have to wonder how the students and faculty feel about Steve Saban being offered $40 million to coach the Alabama Red Tide. We've all come to expect ridiculous compensation packages for professional athletes, but now we have to endure the same thing at the college level? I thought public universities were supposed to serve the goal of higher education. A professor making less than 1/100th of that must surely question the relative importance of his role based on such a large pay discrepancy. I would find it a bit discouraging, to say the least. Then again, Alabama isn't exactly known for fostering intellectual discourse.

Media: Optimism for 2007

2007-01-01T16:38:00.000-08:00

I peruse Arts & Letters Daily from time to time and came across this article which asks leading thinkers what they're optimistic about. There's a wide range of responses, not all of them worth reading, but I did find this response from Chris Anderson interesting. I've reproduced it here:

Systemic Flaws In the Reported World View
Chris Anderson

Paradoxically, one of the biggest reasons for being optimistic is that there are systemic flaws in the reported world view. Certain types of news — for example dramatic disasters and terrorist actions — are massively over-reported, others — such as scientific progress and meaningful statistical surveys of the state of the world — massively under-reported.

Although this leads to major problems such as distortion of rational public policy and a perpetual gnawing fear of apocalypse, it is also reason to be optimistic. Once you realize you're being inadvertently brainwashed to believe things are worse than they are, you can... with a little courage... step out into the sunshine. How does the deception take place?

The problem starts with a deep human psychological response. We're wired to react more strongly to dramatic stories than to abstract facts. There are obvious historical and Darwinian reasons why this should be so. The news that an invader has just set fire to a hut in your village demands immediate response. The genes for equanimity in such circumstances got burned up long ago.

Although our village is now global, we still instinctively react the same way. Spectacle, death and gore. We lap it up. Layer on top of that a media economy that's driven by competition for attention and the problem is magnified. Over the years media owners have proven to their complete satisfaction that the stories that attract large audiences are the simple human dramas. Rottweiler Savages Baby is a bigger story than Poverty Percentage Falls even though the latter is a story about better lives for millions.

Today our media can source news from 190 countries and 6 billion people. Therefore you can be certain that every single day there will be word of spectacularly horrifying things happening somewhere. And should you get bored of reading about bombs, fires and wars, why not see them breaking live on cable 24/7 with ever more intimate pictures and emotional responses. Meta-level reporting doesn't get much of a look-in.

So for example, the publication last year of a carefully researched Human Security Report received little attention. Despite the fact that it had concluded that the numbers of armed conflicts in the world had fallen 40% in little over a decade. And that the number of fatalities per conflict had also fallen. Think about that. The entire news agenda for a decade, received as endless tales of wars, massacres and bombings, actually missed the key point. Things are getting better. If you believe Robert Wright and his NonZero hypothesis, this is part of a very long-term and admittedly volatile trend in which cooperation eventually trumps conflict. Percentage of males estimated to have died in violence in hunter gatherer societies? Approximately 30%. Percentage of males who died in violence in the 20th century complete with two world wars and a couple of nukes? Approximately 1%. Trends for violent deaths so far in the 21st century? Falling. Sharply.

In fact, most meta-level reporting of trends show a world that is getting better. We live longer, in cleaner environments, are healthier, and have access to goods and experiences that kings of old could never have dreamed of. If that doesn't make us happier, we really have no one to blame except ourselves. Oh, and the media lackeys who continue to feed us the litany of woes that we subconsciously crave.

Books: Mayflower

2006-12-31T19:34:00.000-08:00

I spotted Mayflower on a few non-fiction bestseller lists and checked it out this weekend. Unfortunately, I got about 100 pages into it, only to find that it really didn't hold my attention. Very vivid description of the pilgrims and the reasons for their flight to the new world, but ultimately it reminded me too much of a high school history class. Maybe it would be different if I could read it while sitting on the beach, imagining a 400-year old three-masted ship coming over the horizon.

Media: Hummer commercial co-ops Badly Drawn Boy

2006-12-27T16:45:00.000-08:00

I just noticed a new Hummer commercial with a catchy Badly Drawn Boy song that I missed the first time I heard their album. The track is "Something to Talk About" and of course the commercial cuts it off right before the song gets interesting.

On another note, I really have a problem with the concept of the Hummer. I'm all for free markets and letting people choose to drive whatever car or truck they want. But from a purely practical point of view, it's supremely irritating to see people driving around in these gauche status symbols that have never hauled anything in their life. Is it hypocritical to support people's right to choose yet detest their choices?

Books: The Omnivore's Dilemma

2006-12-27T05:55:00.004-08:00

Music: Ta-Dah

2006-12-27T05:55:00.003-08:00

The Scissor Sisters offer a catchy (if not terribly inspired) vision of pop/glam-rock.

I first heard about them on NPR in 2004 when I was in Houston for the first time. Odd that I remember that detail.

Music: Begin to Hope

2006-12-27T05:55:00.001-08:00

While perusing YouTube, I spotted a video for Fidelity and thought it had an interesting melody. The video itself was a bit generic, but it led me to investigate the album: Begin to Hope by Regina Spektor. Some have described her genre as "anti-folk" (which I had never heard of before this) but I kind of like it and recommend a listen. Since then, I've noticed samples of her tracks on some commercials, so keep your ears open.

Wine: Walter Hansel Pinot Noir (Russian River Valley) 2003

2006-12-24T20:47:00.000-08:00

I guess my boss was paying attention the day I casually mentioned that I liked pinot noirs from the Russian River Valley of Sonoma. Last week he dropped off a bottle of Walter Hansel Pinor Noir (RRV) 2003 for Christmas. Cracked it open last night with the turkey and thought it was spectacular. This is the first time I've heard of WH but apparently he has a reputation for putting out quality pinots at reasonable prices - I'll have to keep my eyes peeled for this one. And in case you don't believe me, Robert Parker has got my back.

90 Points - Robert Parker (Wine Advocate):

"Already released, the 2003 Pinot Noir The North Slope reveals attractive berry fruit intermixed with earth, smoke, cherry, flower, spice, and subtle wood notes. Fruit-forward and ripe, it is ideal for drinking over the next 4-5 years."

Food: Brining a turkey (when salt isn't salt)

2006-12-23T20:25:00.000-08:00

In the last few years, brining has started to attract more attention from those who are tired of dry turkey at the holidays. The basic process is: soak the bird in a solution of salt, sugar, and spices, for up to a day before cooking. This helps draw flavor and moisture into the bird through diffusion and osmotic pressure (AP Chemistry finally came in handy) to ensure that you don't end up with parched meat. For more details, check out this guide:

Cook's Illustrated - Brining Basics

Speaking from first hand experience, I can say that brining makes a noticeable difference in the texture and flavor of chickens and turkeys. However, I learned that there's quite a difference in the "saltiness" of different types of salt. This goes back to the distinction between weight and volume that different recipes call for. A cup (volume) of table salt has about 10 ounces (weight) of salt in it. Compare this to a cup of kosher salt that contains only 5 ounces of salt. So if you used equal volumes of each type of salt, you'd end up with very different levels of salinity in your brines.

For some more ideas, I recommend following this link to the Food Network's site. I can vouch for the recipes from Alton Brown, Dave Lieberman, and Emeril, all of which are featured on the front page of search results.

FoodNetwork search for "brine"

Media: Great movies I have seen

2006-12-21T20:12:00.000-08:00

1) The Hudsucker Proxy - Perhaps my favorite movie of all time.

2) The Player

3) Big Fish

4) Cradle Will Rock

Ok, so maybe it's a little odd that two of these four have Tim Robbins in them, and #4 was directed by him.

Media: The best music video director of all time

2006-12-20T20:57:00.000-08:00

This honor must belong to Michele Gondry. He's not that well know in the US (is any director, other than Spielberg and Lucas?) but he did some feature films: Eternal Sunshine of the Spotles Mind and more recently, The Science of Sleep. Even so, his avocation must be music videos - where else can you find so much creativity in three and a half minutes? As evidence, here's my favorite music video of all time (not my favorite song of all time, but that's another story). Seamless editing of film and video, live action with digital composites, and all-around flawless execution of a concept:

YouTube: Chemical Brothers / Let Forever Be

You might also remember Mr. Gondry from this video (and several others if you google him):

YouTube: White Stripes / Fell in love with a girl

MBA: Admitted to McCombs (UT Austin)

2006-12-19T07:44:00.000-08:00

Just got a call from the admissions office at the McCombs School of Business at the University of Texas at Austin - I was accepted the full-time MBA program. This is great news and I'm definitely excited about the possibility of graduate school. As much as I hate to take two years off work (tuition plus the opportunity cost of lost income) it might be the next best step in my career. Probably easier to get it out of the way now rather than later on when I'm more settled. Plus, it could be a great opportunity to make some new friends and explore different careers in business & finance. They said that scholarship information won't be released until February, but hopefully they'll offer something.

MBA: Accepted at SMU

2006-12-10T20:07:00.000-08:00

Received a call from the Cox School of Business at Southern Methodist University to let me know that I was admitted to their full-time MBA program. Moreover, they offered me nearly a full scholarship! Will be interesting to see how my other application fares...keeping my fingers crossed.

Food: Henckels "Pro S" Cutlery

2006-10-26T21:43:00.000-07:00

I'm sure this post will leave most people scratching their heads, but I recieved a great birthday gift recently - a starter set of Henckels Pro S kitchen knives. You don't appreciate how hard it is to cook with dull knives until you get a decent set of cutlery - the difference is like night and day. Of course, I'll find any excuse to add expensive gadgets to my sparse kitchen.

In doing research for this purchase, I discovered that there's actually an internet message board devoted to kitchen knives. People rant and rave about their implements as they...prepare mirepoix? If this isn't proof that there's someone out there for everyone, I don't know what is.

Kitchen Knife Forums

Health: A trip to the ER...

2006-09-09T21:54:00.000-07:00

It seems like I end up visiting the emergency room every five years or so. Today marked my mid-decade ER trip, so I should be good until roughly 2010. Coincidentaly, that's about as long as a tetanus shot lasts...maybe it's not a coincidence?

I had been at work late the night before and was rushing to get out the door the next morning. While chopping some vegetables for my lunch, I managed to put the blade through my left index finger. At least the hospital was only a few blocks away from my new apartment. Three weeks into my new job and I'm already calling my boss to explain that I can't come in because the bleeding hasn't stopped yet. Six stitches later and I'm good to go. And rats, I have to come back in a week to get them taken out. Apparently the type of stitches that automatically dissolve are for internal use only. The ones I have are more like fishing line.

By the time it's all said and done, the $4.00 santoku knife from Target will end up costing about $1500 in medical bills. Thank goodness for health insurance, my portion of that should only be about $100. What's the old saying about pay me now or pay me later?

Blog: Some changes

2006-09-01T20:41:00.000-07:00

I've decided that this blog can be more than just a bunch of financial nonsense. So, starting today, I will post whatever comes to mind. I've also gone through and cleaned up a number of old posts that were of limited appeal. Ok, so the entire blog is of "limited appeal" but you get the point.