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IPO

Hedge Fund Fortress IPO

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This is probablly the hottest IPO this year (so far). It went up 89% on its debut. But I did not jump into it because: 1) I don’t have much cash; 2) Hedge fund is the business I don’t know too much about.

I am not against shorting stocks, trading options and other exotic stuff; but these are the areas I don’t feel comfortable (math, lots of math) and don’t plan to learn it at this time. I am just an old fashioned guy, and my role model is the guy in Omaha. One of his rule is “buy the business you can understand; and the business that generates lots of cash and does not change too much over the years, e.g., Coca Cola and Gillette”.

Interestly, Mr. Duan Yongping, the legendary figure in China electronics industry, is also learning Buffett’s philosophy these days.