I know Carl through a mutual friend — he’s out in Washinton State, and had been very successfully running several 100 million dollars, primarily  in small cap companies. I’ve found his views to be informative and refreshing.

Its Dues Paying Time: American Myths Being Destroyed — And What May Happen Next

by Carl Haefling

This piece is one I promised a number of folks as I received emails while traveling and upon my return learned that my doom and gloom predictions had become reality.  Over the past 3 or 4 years I have written extensively about the systemic issues regarding real estate.  I have believed, since Greenspan lowered interest rates following 9/11 in an effort to prevent a recession, that the unintended consequence of over stimulating the real estate markets would have dramatic consequences.  My intention here is to reflect about my life long experience in the stock market, how that experience shapes me today, and my belief about what possibilities lie in front of us.

However, before going further let me make a few upfront statements.  I am not an economist; I have never been paid as a stock analyst nor to run a hedge fund or mutual fund.  When I was 42 I took a very small brokerage business and turned it into a money management business giving me full discretion over the clients’ assets in the account.  I began with about $3m in assets and turned it into $120m without adding additional funds in about 13 years.  I had an annualized return of over 40% a year and then decided to quit.  Enough was enough, and from my perspective the signs were clear that it was about to get ugly.  I had learned that though I was successfully managing other’s people money, the stresses and responsibilities were high.  As I created money, I was changing the course of people’s lives, including my own.

As the size of the assets under my management increased, my staff did not.  It was me, me and more of me.  I was licensed with a firm in Cleveland who executed my transactions and held the securities, but I did all of the work including answering the phone.

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Fun stuff for a Saturday night — these guys are such pros:

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See also:
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