Holyland Trip Report - Jordan - Mount Nebo, Madaba - Day 1

We signed up for a 9-day all-inclusive Holyland package tour in early April this year (2011) at a local tour-company. The timing was based on the kid’s summer holidays (April-May) rather than on any particular touring season. June through September is the peak season with the three months on either side labeled the “shoulder season”. Pricing was Rs 60.5K (~$1350) for an adult with a Rs 5K (~$110) discount for children between 5 and12. Compared to similar tours from the Western US and UK priced in the $3K range, this is less than half, but then so is the distance (below 3K miles compared to around 8K miles). Tour companies offering similar tours galore in Kerala, so competition probably helped.


The day before the trip, a tour company representative reminded us to carry umbrellas as light rain was expected during our trip. The rep mentioned a meeting point at the airport full three-hours before the flight time but was unable to provide a contact number at the airport. A kit handed out at the airport included electronic ticket docs, a name-badge, and a baseball cap. Group check-in worked well at Nedumbassery Airport and that too with individual bag tags. It took nine hours to get to Jordan and the service level of our carrier, Gulf Air was OK. The wing to Bahrain took 4.5 hours and from there to Amman was another 2.5 hours with a two-hour break. Breakfast was served on both the flights and the Amman flight had the interesting option of fol – refried fava beans with no meat.


The flights were on time and we reached Queen Alia Airport in the southern outskirts of Amman on time at around 11:30 AM. The visa procedure went smooth – group visa with an arrival stamp in the passport. We had to while away 90-minutes at the airport before the group from Chennai could join us – patience was never our virtue but this time we were too excited to grumble. A tour guide from Al Thuraya Travel and Tours, who joined us at the airport, escorted us to the tour bus (Volvo type low rise with AC). First stop after departure was at the Assa Mosa restaurant near Mount Nebo – Middle Eastern Buffett lunch with chicken, lemon rice, salads, pita bread, and dessert. Adjacent to the restaurant is a curio store (Uyun Musa Hand Craft) where good mosaic art pieces are upwards of $25. The view across from the restaurant is fantastic - the Promised Land, Moses Springs (Uyun Musa), and the Dead Sea.


After lunch, we proceeded to Mount Nebo, ten minutes west of Madaba (the city of Mosaics – Roman Byzantian Town). Mount Nebo is where the Hebrew Prophet Moses was shown the view of the Promised Land, God was giving the Israelites as mentioned in the Bible (Deuternomy 34:1):“And Moses went up from the plains of Moab to Mount Nebo, the top of Pisgah, which is opposite Jericho.


Jews and Christians believe Moses was buried on Mount Nebo by God Himself although the location of his final resting place is unknown. The site is also revered as where the Prophet Jeremiah hid the tabernacle and the Ark of the Covenant in a cave as mentioned in the Bible (2 Maccabees 2:4-7). A 2009 book named the “The Temple at the Center of Time” by David Flynn claimed evidence had been found that the Ark is hidden at Mount Nebo. We stopped by the Greek Orthodox Church of St. George in Mount Nebo. The church houses the 6th century original mosaic map of the Promised Land. The Map was originally around 90 square meters but only about a quarter survived. The current church was built in 1896 AD, following the discovery of the Map. A church was first constructed here in the 4th century to commemorate the place of Moses’ death. The mosaic contains the earliest extant representation of Byzantine Jerusalem and provides important details of the 6th century landmarks with the central colomnaded street and the Holy Sepulchre. At the far corner of the church, there is a vantage viewing area with a large structure featuring the serpentine cross sculpture atop Mount Nebo (Brazen Serpent Statue - Serpentine Cross – metal decoration designed by Giovanni Fantoni). It symbolizes the bronze serpent created by Moses in the wilderness, as mentioned in the Bible (Numbers 21:4-9):


The Israelites left Mount Hor by the road that leads to the Gulf of Aqaba, in order to go round the territory of Edom. But on the way the people lost their patience and spoke against God and Moses. They complained “Why did you bring us out of Egypt to die in this desert where ther is no food or water? We can’t stand anymore of this miserable food!” Then the Lord sent poisonous snakes among the people, and many Israelites were bitten and died. The people came to Moses and said, “We sinned when we spoke against the Lord and against you. Now pray to the Lord to take these snakes away.” So Moses prayed for the people. Then the Lord told Moses to make a metal snake and put it on a pole, so that anyone who was bitten could look at it and be healed. So Moses made a bronze snake and put it on a pole. Anyone who had been bitten would look at the bronze snake and be healed.


A new church is being built in the area. Pope John Paul II visited the place in 2000 AD – he planted an olive tree near the Byzantine church as a symbol of peace. A small museum in the property features mosaics from the Kayanos Church from the Byzantine period along with other mosaics. Abu Badd, the rolling stone used as a fortified door of a Byzantine monastery, a memorial stone for Moses, and a large stone with carvings remembering Pope’s visit are other sites of interest within this property.


Our next stop was the Virgin Mary Church and the Archaeological Park of Madaba. A large number of mosaic monuments were rediscovered in the northern part of the city, giving it the name “City of Mosaics”. The area crossed by the colomnaded Roman road (cardo), has the Church of the Virgin Mary, the Church of Prophet Elijah with its crypt, the Church of the Holy Martyrs (Al-Khadir), the Burnt Palace, and the Church of the Sunna’ family. Some mosaics found in the Church of the Virgin and the Apostles depict an assortment of flora and fauna and general life scenes – one that really caught our eye was the progressive depiction of people from all races (whites, blacks, etc) killing wild animals followed by their domestication, and finally using them in transportation. A short walk took us through several shops selling mosaics and other curios where we took a 10-minute shopping break.


Our first nights stay was at the Amaken Plaza Hotel, a 3-star hotel at the end of Queen Rania Al-Abdullah Street. It is located on a busy street – rooms facing the road can be quite noisy while the inside ones are fine. Welcome drink and bell service went flawless. Buffett dinner had a good selection (chicken, pasta, salads, soufflé, jello, etc.) although service was a bit indifferent. Buffett breakfast the following morning also had a varied selection (mashed potato, gravy, pita bread, egg, ham, cheese, olives, oj/coffee/tea, cake, sour cream, etc.).


The following day started with a 2-hour journey to the Israeli border crossing Jordan River at Sheikh Hussein Bridge. The process of crossing the border was smooth but time consuming – as one has to remove all baggage and go through security twice (Jordan and Israel) - it took additional time on the Israeli side for some people when they did some extra checking for people with US passports living in India but working outside India. A new tour bus and guide was waiting on the Israeli side of the border and we proceeded with the next item in our itinerary. All in all, the Jordan portion of the tour was lovely although we felt it was much too short.

Related Posts:
  1. Holyland Trip Report - Jordan - Mount Nebo, Madaba - Day 1.
  2. Holyland Trip Report – Israel - Yardenit, Tiberias, Tabgha, Cappernaum, Ginosar, Sea of Galilee (Day 2).
  3. Holyland Trip Report - Israel - Nazareth, Cana, Tel Aviv, Jaffa, and Bethlehem (Day 3).
  4. Holyland Trip Report - Israel - Jerusalem (Day 4).
  5. Holyland Trip Report – Israel – Jerusalem, Jericho, Dead Sea (Day 5).
  6. Holyland Trip Report – Egypt – Red Sea, Sinai (Day 6).
  7. Holyland Trip Report – Suez Canal, Cairo - Day 7.
  8. Holyland Trip Report - Old Cairo - Day 8.
  9. Holyland Trip - Gotchas to avoid
Last Updated: 01/2012. 


Tracking Berkshire Hathaway's Investment Portfolio

Berkshire Hathaway’s investment portfolio has quite a following as many consider it as the Holy Grail in investing. Part of the interest can be attributed to curiosity over what Berkshire Hathaway’s Warren Buffett is doing with the stocks in the portfolio. But there are countless investors trying to mimic Buffett’s actions in their own portfolio in an attempt to realize superior returns.

Read more at Seeking Alpha...

Related Articles:
  1. Tracking Berkshire Hathaway's Investment Portfolio - Part 1.
  2. Tracking Berkshire Hathaway's Investment Portfolio - Part 2.
  3. Tracking Berkshire Hathaway's Investment Portfolio - Part 3.
  4. Valuing Berkshire Hathaway Stock



    Economy, Business, Credit, and Debut @ the Roundup #34











    Welcome to the August 24, 2011 edition of the Roundup






    Neal Frankle presents Bear Market Withdrawal Strategies For Retirees posted at Wealth Pilgrim: Money Management Advice, Financial Stess Management, Addiction Recovery Plan & Resources, saying, "If your are retired and taking withdrawals from your investments, you’re likely very concerned when the market isn’t doing well."





    Michael Donelly presents “Decorate” your business with the art of delegation. posted at www.anotherway.org, saying, "Read this if: you want to be a successful manager or grow your one-man business into something bigger.

    Gain: The more you delegate the more time you have for other tasks.

    Cost: Loss of direct control over tasks."





    Jon Milligan presents 4 Tips to Landing Those Entry Level Accounting Jobs posted at CPA Career Coach, saying, "Landing those entry level jobs right out of college is hard, consider these 4 tips if you want to land the right job."





    Tax Debt Help presents Latrell Sprewell the No. 1 Delinquent Taxpayer in Wisconsin posted at Tax Debt Help Blog.





    BackTaxesHelp.com presents When Income on Taxes Doesn't Match bank Records posted at Back Taxes Help.





    All Others





    Gratitude presents How to Make Your Abundance Affirmations Work posted at Gratitude's Personal Development Blog.





    Ann Jenkins presents Forex Secret Profit posted at Make Money Review Sites.





    Tim Chen presents Bank Credit Cards: Explained posted at NerdWallet Blog - Credit Card Watch, saying, "Many different companies issue credit cards. Here's our rundown on how the credit card ecosystem works, how transactions are processed, and how everyone makes money along the way."





    Mike Piper presents Types of Income Tax Deductions posted at The Oblivious Investor, saying, "Many taxpayers are unaware that some types of deductions are more valuable than others."





    Jason Price presents DebtGoal Review: Do-It-Yourself Debt Payment Plan posted at One Money Design, saying, "I like DebtGoal as a do - it - yourself debt planning tool that helps save interest payments but avoid debt service scams. There is nothing like starting with you to fix your finances."





    Marvin Grossman presents Inside the Life of Centurion Cardholder posted at CardRatings Blog, saying, "The mysterious American Express "Black" card draws much speculation. A Centurion cardholder tells all about her card."





    Charles Chua C K presents 10 Effective Ways to Establish Your Credit Worthiness posted at All About Living with Life.





    Jessica Bird presents 3 Car Tax Rules You Should Follow posted at CarTaxBands.org, saying, "This article highlights three rules that you should follow if you want to avoid being fined or losing your car."





    Jon Elder presents 13 Part-time Jobs With Benefits posted at Free Money Wisdom, saying, "There are a surprising number of popular employers who provide benefits to part-time employees. Here are 13 employers and a sample of the benefits each provides for part-timers—there’s an excellent chance that several are located where you live:"





    Investor Junkie presents The Best Business Ideas Are The Simplest posted at Investor Junkie, saying, "I’ve learned in business, the KISS (Keep It Simple Stupid) principle applies.
    It’s not how great the business idea is, but it’s how well it’s executed"





    J.B. presents The 1st Annual My University Money Scholarship Contest! posted at My University Money, saying, "It's our first scholarship contest and we're giving $100 to the winner!"





    MoneyCone presents Ally Vs. Ing Direct: A Face Off! posted at Money Cone, saying, "Being online banks, both Ally and ING Direct can afford to offer very aggressive rates when compared to traditional banks. But between them, which one offers the best value for your money? Let’s find out!"





    Jason Price presents Aurora Bank Review posted at One Money Design, saying, "Aurora Bank is getting great reviews from Bankrate.com and other personal finance bloggers. I cover my findings in this review."





    Steve presents IRA Investments:Planning Life After Retirement | 2009 Taxes posted at 2009 Taxes, saying, "The recent economic recession has compelled a lot of people to seriously think about their financial condition, including their lives after retirement."





    Laurence Mason presents How to Save Time by Identifying Worthless Goals posted at The Happiness Manual, saying, "Setting the right goals is vital for a successful financially independent business. This article will teach you essential steps to assessing whether your goals are worth your time. Only the money making goals which will lead to success are the ones you should be working for."


    That concludes this edition. Submit your blog article to the next edition of
    road to financial independence
    using our
    carnival submission form.
    Past posts and future hosts can be found on our

    blog carnival index page
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    Carnival of Road to Financial Independence #34











    Welcome to the August 23, 2011 edition of road to financial independence.


    Beating Inflation





    John Border presents How to buy gold in the stock market posted at Stock Market Basics, saying, "The best way to beat inflation is to invest in gold and that will help you hedge against the shaky economy."



    Frugal Living





    Sara Lorre presents The Cheapest Property in the UK posted at How Much is Your Property Worth, saying, "If you are looking to reduce your expenses you could lots by moving to a cheaper part of the country. This article highlights some of the cheapest area of the UK."





    Jessica Bosari presents How to Navigate Estate Sales | billeater.com posted at Billeater, saying, "Understand how estate sales work to get the best deal."





    Jon Elder presents Use These Tips to Save on Your Next Prescription posted at Free Money Wisdom, saying, "Don't pay full price for your next medicine prescription. Instead use these five tips to save a truckload on your next prescription!"





    Andrew Boyd presents 10 Ways Going Green Can Save You Money posted at MoneyBucket, saying, "Saving the environment isn't only for treehuggers. It can help you save a ton of money, and improve the quality of your life."





    Tim Chen presents Happy Birthday to the Dodd-Frank Financial Reform Act posted at NerdWallet Blog - Credit Card Watch, saying, "July 21st was a big day in the financial regulation world: the Dodd-Frank Wall Street Reform and Consumer Protection Act turned 1 year old, and a number of its provisions kicked in. How do they effect you?"





    Carrie Smith presents Mistakes to Avoid While Building Wealth posted at Careful Cents.





    Jonathan Milligan presents 21 Simple Ideas to Get Cash Fast for an Emergency Fund posted at Simple Life Habits, saying, "If you are in need for cash for an emergency and do not want to use your credit cards, then here is a list of 21 ideas that you can use starting today!"





    Jonathan from Debt Loans presents Money Lessons from Indiana Jones and the Raiders of the Lost Ark posted at Frugal Living, saying, "Although it seems unlikely that the creators of Indiana Jones and the Raiders of the Lost Ark had any intentions of creating a financial-responsibility message in their film, we can clearly see the lessons applied here. Whether you’re debating over an important purchasing decision or facing a mountain of debt on your path to financial freedom, just remember these lessons from Indiana Jones and you’ll be ready to go."





    Melissa Batai presents How One Family Survived Unemployment: Part Two posted at Mom's Plans, saying, "This is the second part in a two part series that documents Tim and Catherine’s struggle to survive Tim’s back to back unemployment."



    Passive Income





    David Leeman presents Passive Income Ideas, Creative Sources of Passive Income posted at Financial Freedom Advantage, saying, "Passive income sources provide a great way to supplement your income and should be a part of an overall financial freedom strategy."





    Briana Myricks presents I Sold My Crap! posted at 20 and Engaged, saying, "I sold the clothes I no longer wanted and made about $250."





    Tarik presents 3 Tips to Increase Sales | Success starts today posted at Success starts today, saying, "3 easy tips to skyrocketing your business income using emails."





    Clinton Douglas IV presents Few Ideas in Buying Investment Property With No Money Down | Absolute Wholesellers the Blog posted at Absolute Wholesellers the Blog, saying, "

    Clinton presents: How to buy a foreclosed home Some people may find the idea intimidating if they hear people talk about investing in property with no money down. Even so, it does not really have to be that way. If the credit is lower than the ideal, it could be tricky to open up opportunities for any good investment.

    "


    Reducing Expenses





    Gen Y Capitalist presents Evolving Past Paying Yourself First and Taking Ownership of Your Life posted at Gen Y Capitalist, saying, "Why paying yourself first pay be holding you back"





    Moneyedup presents Avoid Going into Debt posted at MoneyedUP, saying, "If you are living paycheck to paycheck, you know that one financial setback can turn into a major money problem. The solution, then, is to stop living paycheck to paycheck."





    Andrea presents How to Lower Your Personal Debt Ceiling in America posted at Savings Scoop.





    CardWisdom presents FAQ: Should I Transfer a Balance to a Credit Card with a Current Balance? posted at Smart Balance Transfers, saying, "Credit card companies often try to convince consumers to transfer debt to cards they currently have debt on. This can be a costly mistake."





    Jen presents Some Spending is Non-negotiable! Any Compromises? | Master the Art of Saving posted at Master the Art of Saving, saying, "While the large sums (spending or saving) make a big difference in our finances, we often overlook the small things that can add up. I’m sure you’ve heard/read people telling you to stop buying mochas or lattes and save a ton of money every year (do these people even drink coffee?)."



    Stock Investments





    Maxim Kazawy presents Highest Dividend Paying Aristocrat Stocks in Beverage Industry posted at Highest Dividend Paying Stocks, saying, "The market value of top 3 beverage companies in the world exceeds $280 billion. These dividend paying aristocrats are PepsiCo, Coca Cola & Brown Forman. All 3 companies are in the S&P 500 Dividend Aristocrats Index meaning they have consistently raised their dividends every year for the last 25 years, without missing a single year."





    Hemant Beniwal presents Indian ETF Guide posted at The Financial Literates, saying, "ETF as an investment concept has failed in India. The introductory stride has been lost. Even with 10 years of existence in Indian markets they have not able to make any space in investor’s portfolio."





    Maxim Kazawy presents Highest Dividend Paying Stocks in Professional Services Industry in the S&P 500 posted at Highest Dividend Paying Stocks, saying, "In this article, we will go over 4 highest dividend paying companies in the S&P 500 that are related to providing professional services to other businesses, consumers & customers worldwide."





    Dividend Growth Investor presents Best Canadian Dividend Stocks posted at Dividend Growth Investor, saying, "In order to find the best Canadian dividend stocks, I obtained a list of Canadian Dividend Achievers. These are Canadian companies, which have increased dividends for the past five or more consecutive years. I then screened the list based off my entry criteria."





    Alexander presents Best Investments For Steady Income posted at Dividend Stocks, saying, "The best investment is a diversified portfolio of stocks, funds and trusts that increase in value while paying steady income."





    jared h presents Stocks to Purchase in a Down Market posted at RICH AS CHOCOLATE, saying, "High dividend stocks that are likely to thrive in a down market."





    Online Dividends presents 5 Stocks On Sale posted at The DIV-Net, saying, "With the drop in the market being the talk of the town, it's not terribly difficult to find value. I could probably put a list of 30 or more stocks that I find particular value in, but I think ultimately you want to stick to your plan. You should always think about allocation, diversification and buying quality on sale."





    That concludes this edition. Submit your blog article to the next edition of
    road to financial independence
    using our
    carnival submission form.
    Past posts and future hosts can be found on our

    blog carnival index page
    .




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    National Presto (NPK) - Stock Analysis

    National Presto (NPK), a housewares and small appliances company that diversified into defense and absorbent products was founded in 1905 to manufacture industrial-size pressure canners. Read more about National Presto's intriguing history, business issues, finances, Quantitative OFB Rating, Summary & Recommendation at Seeking Alpha.

    Stock Portfolio and Watchlist Update for August 2011

    Following are the activity from the previous month:
    1. Closed Covered Calls on ICICI Bank (IBN Jan 2012 55 Call) that we wrote (9/22/2010) at $5.10 on 7/18/2011 at $1.60 for a small profit. We also sold our entire ICICI Bank stock position (IBN) at $46.19 on the same day for an almost 100% overall profit.
    2. Closed Covered Calls on Cardinal Health (CAH Sep 2011 43 Call) that we wrote (3/8/2011) at $2.55 on 8/3/2011 at $1.38 for a small profit.
    3. Closed Covered Calls on NYSE-Euronext (NYX Jan 2012 40 Call) that we wrote (4/18/2011) at $1.95 on 8/4/2011 at $0.18 for a small profit.
    4. Closed cash-covered puts on McDonalds (MCD Jan 2012 75 Put) that we wrote at $3.5 (3/7/2011) on 8/8/2011 at $0.75 for a small profit.
    5. Closed cash-covered puts on Abbot (ABT Jan 2012 45 Put) that we wrote at $4.40 (11/27/2010) on 8/8/2011 at $1.95 for a small profit.
    6. Closed cash-covered puts on Glaxo (GSK Jan 2012 35 Put) that we wrote at $2.70 (3/19/2011) on 8/8/2011 at $1.21 for a small profit.
    7. Bought Waste Management (WM) at $32.05 on 7/29/2011 with around 2% of our total portfolio value.
    8. Bought United Parcel Service (UPS) at $63.99 on 8/8/2011 with around 2% of our total portfolio value.
    9. Wrote cash-covered puts on Ameritrade (AMTD Feb 2012 14) on 8/15/2011 at $1.55. The cash-coverage requirement accounts for around 2% of our total portfolio value.
    10. Added 60% more to our Aegon (AEG) stake at $4.03 on 8/11/2011.
    The cash coverage requirements on the open puts account for about 52% of our cash position. The cash position in our portfolio is at around 32.42%. We closed all of our covered calls as the current stock price had fallen well below the strike price. We also closed some of our cash-covered puts that were in the money to free up cash coverage requirements. As the stock market corrected by around 15% in the last month, we initiated long positions on Waste Management (WM) and United Parcel Service (UPS) which were on our watch-list for some time. We will continue to initiate long positions if the stock market continues to correct.

    Below is our updated portfolio – the overall portfolio is around 6.75% in the red compared to our cost basis:





































































































































    StockBuy DateBuy PriceCurrent PriceCurrent % Of PortfolioUnrealized % ReturnYield as % of Portfolio Value
    Altria (MO) Various19.1925.712.1433.970.16
    Philip Morris International (PM)1/4/200532.1968.832.29113.810.12
    Kraft Foods (KFT)Various26.3333.452.2227.060.09
    Pfizer (PFE)Various22.1317.672.05(20.15)0.09
    Central Europe & Russia Fund (CEE)Various29.9734.811.1616.160.01
    Itron Inc. (ITRI)11/07/200785.0135.070.58(58.79)None
    iRobot (IRBT)12/18/200718.6525.961.7240.39None
    LDK Solar (LDK)Various20.355.060.50(75.14)None
    Aegon N.V. (AEG)04/28/200815.994.100.89(46)0.00
    Frontline Limited (FRO)10/06/200836.95 6.880.34(79.07)0.08
    DryShips Incorporated (DRYS)02/09/20096.96 2.74 0.32(60.66)0.00
    Plum Creek Timber (PCL)07/23/200930.50 34.622.3013.510.14
    CPFL Energia S.A. (CPL)07/28/200916.82 25.042.5048.900.18
    BP plc (BP)08/05/200951.49 38.461.28(25.30)0.09
    AT&T (T)08/27/200926.38 27.991.866.090.12
    Sysco Corporation (SYY)Various25.92 272.244.150.10
    Exelon (EXC)12/30/200949.38 41.752.08(15.46)0.16
    Telefonica SA (TEF) 02/09/201022.93 19.511.94(14.91)0.24
    Vonage Holdings (VG) 04/06/20101.51 2.840.9487.540
    Archer Daniels Midland (ADM)04/23/201028.27 27.521.83(2.67)0.09
    Intel Corporation (INTC)Various21.9119.192.55(12.42)0.12
    Google Inc. (GOOG)05/03/2010528.36 490.921.63(7.09)0
    Cardinal Health (CAH) 05/06/201034.42 39.981.9916.150.06
    Pearson PLC (PSO) 05/06/201014.32 17.192.0020.010.16
    Nokia (NOK) 05/14/201010.355.800.96(43.96)0.16
    Harris (HRS) 06/07/201045.65 34.781.73(21.65)0.08
    Beckton Dickson (BDX) 06/23/201070.20 76.922.569.570.10
    NYSE EuroNext (NYX) 10/22/201030.38 25.251.68(16.89)0.15
    Owens & Minor Inc. (OMI) 10/22/201028.11 27.161.80(3.38)0.08
    Encana (ECA) 11/8/201029.2223.391.55(19.88)0.10
    Nucor Steel (NUE) 1/21/201144.9631.511.57(29.92)0.12
    K12 Inc (LRN) 2/15/201132.2123.741.18(26.30)0.00
    Procter and Gamble (PG) 3/7/201161.8060.962.03(1.36)0.09
    National Presto Industries (NPK) 06/15/201197.8588.771.47(9.28)0.19
    Harleysville Group (HGIC) 06/17/201130.4627.081.80(11.11)0.14
    Wal-Mart (WMT) 06/17/201153.0652.301.74(1.43)0.07
    Nutrisystem (NTRI) 06/18/201117.0012.131.01(28.65)0.08
    Gol Linhas Aereas Inteligentes SA ADR (GOL) 07/16/201112.506.491.08(48.08)0.08
    Waste Management (WM) 07/29/201132.0529.401.95(8.28)0.12
    United Parcel Service (UPS) 08/08/201163.9961.702.05(3.57)0.10
    Cash





    32.42



    Total Portfolio







    (6.75)3.13




    Below is a summary of transactions during the year:







































































    StockBuy DateBuy PriceSell DateSell Price% Gain (Loss)% Portfolio Return*
    GSK Jan 2011 35 Put 1/22/2011NA 3/26/2010 NA NA0.14
    NUE Jan 2011 40 Put 1/22/2011NA 3/26/2010 NA NA0.17
    ADP Jan 2011 40 Put 1/22/2011NA 6/21/2010 NA NA0.10
    COST Jan 2011 55 Put 1/22/2011NA 8/16/2010 NA NA0.10
    QSII June 2011 60 Put 2/15/2011NA 10/29/2010 NA NA0.15
    AMTD Feb 2011 15 Put 2/19/2011NA 7/13/2010 NA NA0.15
    ITRI May 2011 60 Put 3/8/2011NA 10/7/2010 NA NA(0.00)
    NE June 2011 33 Put 3/8/2011NA 11/4/2010 NA NA0.14
    JNJ July 2011 60 Put 5/5/2011NA 12/27/2010 NA NA0.06
    Central Europe and Russia Fund (CEE) 6/28/200751.57 5/5/2011 44.68 (13.52)(0.16)
    LinkedIn (LNKD) 05/19/201186.80 05/25/2011 94.31 8.650.12
    NTRI June 2011 17 Put 06/18/2011NA 01/21/2011 NA NA0.10
    GOL July 2011 12.5 Put 07/16/2011NA 02/15/2011 NA NA0.13
    IBN Jan 2012 55 Call 07/18/2011NA 09/22/2010NA NA0.05
    ICICI Bank (IBN) Various$23.77 7/18/2011$46.06 93.791.04
    CAH Sep 2011 43 Call 08/03/2011NA 03/08/2011NA NA0.06
    NYX Jan 2012 40 Call 08/04/2011NA 04/18/2011NA NA0.11
    MCD Jan 2012 75 Put 08/08/2011NA 03/07/2011NA NA0.09
    ABT Jan 2012 45 Put 08/08/2011NA 03/19/2011NA NA0.12
    GSK Jan 2012 35 Put 08/08/2011NA 03/19/2011NA NA0.09
    Realized Gain/(Loss) YTD-----2.72



    • % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
    • The table assumes realization of profits associated with selling options only after the option is exercised or expiry.
    We have cash covered puts written on Ameritrade (AMTD) shares (Feb 2012 14), Weyerhaeuser Company (WY) shares (Jan 2012 20 at $2), Cisco (CSCO) shares (Jan 2012 20 at $2.64), Berkshire Hataway (BRK.B) shares (Jan 2012 75 at $7.15), H&R Block (HRB) shares (Jan 2012 10 at $1.60 and 12.5 at $2.30), Alcoa (AA) shares (Jan 2012 15 at $1.70), Cameco (CCJ) shares (Jan 2012 22.5 at $1.60), and Diebold (DB) shares (Nov 2011 35 at $3.40) with a cash coverage requirement of about 52.26% of our cash position.

    Our watch list follow – Automatic Data Processing (ADP), Applied Materials (AMAT), Amgen (AMGN), Air Products & Chemicals (APD), Brown-Foreman (BF-B), Bemis Company (BMS), Canon (CAJ), Church & Dwight Company (CHD), Canadian National Railway (CNI), Darden’s Restaurants (DRI), Giant Interactive Group (GA), Kaman Corporation (KAMN), Coca Cola (KO), 3M Company (MMM), PepsiCo (PEP), Teva Pharmaceuticals (TEVA), VF Corporation (VFC), Waste Management (WM), McGraw Hill (MHP), Whirlpool (WHR), and Emerson Electric (EMR).

    Media disservice– CNN Coverage of Berkshire Hathaway’s new stake in Dollar General (DG)

    CNN Money ran an article on 08/15/11 titled “Buffet Adds $58 Million Stake in Dollar General” with the opening line “If you want to invest like Warren Buffett, start by adding Dollar General to your portfolio and offloading shares of Kraft”. Anyone glancing at the headline and the first lines would gather Warren Buffet to be mighty bullish on Dollar General and bearish on Kraft. The complete truth however went largely missing. There is no denying $58 million is a solid chunk of change – but it pales in comparison to Buffet’s investment portfolio size which towers at over $115 Billion (~$48B Cash, ~$67B Equity). This brings the value of the new stake in Dollar General to be just 0.05% of his total investments. It is also a fact that Buffet bid adieu to six million shares of Kraft during the second quarter. The article conveniently omitted to mention that his remaining stake of 99.5 Million Shares of Kraft is valued at around $3.5 Billion which is around 3% of the value of his total investments. The naked truth is that Berkshire Hathaway’s current stake in Kraft is valued at over sixty times the value of his new Dollar General stake. The article naively implies getting rid of Kraft and buying Dollar General is a sure bet to be an investor like Buffet.

    Rather than quoting large numbers, let us cut to the chase and compare how changes in the share price of Dollar General and Kraft will impact Berkshire Hathaway’s overall portfolio value. The task at hand is to have a 1% impact on Berkshire Hathaway’s investment portfolio, and for that the overall portfolio value has to increase or decrease by around $1.15B. The table below shows how Dollar General’s (DG) and Kraft’s (KFT) stock prices should move to have the 1% impact on Berkshire Hathaway’s portfolio:













    Stock Berkshire Hathaway Holdings ValueCurrent Price per ShareProjected Price Per Share for 1% Performance Imapct
    Dollar General (DG)$58M$32.19$670.44
    Kraft (KFT)$3.5B$34.68$46.07


    Dollar General’s price per share has to go up to $670.44 from the current share price of $32.19 for Berkshire Hathaway’s Dollar General Holdings to have a 1% positive performance impact on the overall portfolio. By the same token Kraft’s price per share only needs to go up from $34.68 to $46.07 to have the same impact. To summarize, the CNN articles’ premise is completely misleading - the portfolio adjustments in the second quarter 2011 are very minor compared to the overall portfolio size to warrant any such judgment call. Furthermore, Berkshire Hathaway’s 2nd quarter 2011 adjustments may have nothing to do with Warren Buffet’s stock selection. It is highly likely that the Dollar General (DG) pick was by Todd Combs, the hedge fund manager Buffet tapped in late 2010, as the amount involved is comparatively little. While the article by CNN Money did a disservice to the investing community, articles from Bloomberg and Morningstar did convey reputable information. Readers can also find the information by comparing Berkshire Hathaway’s latest 13F SEC filing with their previous filing.

    Giant Interactive (GA) - Stock Analysis

    Giant Interactive (GA), an online game developer and operator founded in November 2004, pioneered the free-to-play revenue model in China. Read more about Giant Interactive's current product portfolio, business issues, finances, Quantitative OFB Rating, Summary & Recommendation at Seeking Alpha.


    Wrote Cash Covered Puts on Ameritrade (AMTD Feb 2012 14)

    We took advantage of the market volatility in the last week to reposition some of our options positions. Despite the drop in the overall market, a few of our cash covered put positions were deep in the money. Also, a couple of our covered calls were also in the money. As twittered previously, we closed some of those positions and realized modest profits. A summary follows:

    Position

    Buy Date

    Sell Date

    % Return Relative to Total Portfolio Value

    MCD – Jan 2012 75 Puts

    8/8/2011

    3/7/2011

    0.086

    ABT – Jan 2012 45 Puts

    8/8/2011

    11/27/2010

    0.115

    GSK – Jan 2012 35 Puts

    8/8/2011

    3/19/2011

    0.093

    CAH – Sep 2011 43 Calls

    8/3/2011

    3/8/2011

    0.055

    NYX – Jan 2012 40 Calls

    8/4/2011

    4/18/2011

    0.108

    The maneuvers had the net effect of reducing our cash-coverage requirement to just under 50% of our total cash position. Some of the cash freed up was used to sell cash covered puts on Ameritrade with roughly 2% of our total portfolio value. The cash-coverage requirement has gone up to slightly more than 50% following this trade. The near-the-money Ameritrade February 2012 14 was sold at $1.55 realizing about 0.25% of our total portfolio value in cash. The underlying shares are trading near the 52-week low mainly due to the low-interest-rate environment. There is also a certain amount of fear that discount brokers will eventually end up being on the loosing end as retail investors abandon stock trading due to an extended period of very low returns. A summary of our open cash-covered put positions follow:

    Position

    Sell Date

    Sell Price

    CSCO – Jan 2012 – 20

    9/13/2010

    $2.64

    BRK.B – Jan 2012 – 75

    9/13/2010

    $7.15

    HRB – Jan 2012 – 10

    12/29/2010

    $1.60

    AA – Jan 2012 – 15

    1/13/2011

    $1.70

    HRB – Jan 2012 – 12.5

    1/27/2011

    $2.30

    CCJ – Jan 2012 – 22.5

    3/16/2011

    $1.60

    DBD – Nov 2011 – 35

    4/18/2011

    $3.40

    WY – Jan 2012 – 20

    6/15/2011

    $2.00

    AMTD – Feb 2012 – 14

    8/15/2011

    $1.55


    R2I Living - Purchasing a new car

    At the time of our relocation we owned two vehicles - a Honda CRV and a Lexus LS400. The Honda was the workhorse and the commute car while the other was mainly driven around the island. They both served us really well with minimal maintenance though the Lexus had quite a thirst for higher grade fuel. In fact, when considering options for a vehicle after relocation, the first choice was for a vehicle along the lines of the Honda CRV. Alas! SUVs command a huge premium in India. The Honda CRV we purchased new for $21K in the US is almost at triple cost ($55K) in India. Given this huge pricing discrepancy, we steered clear of the higher-end vehicles. The only vehicle with comparable US pricing was the Toyota Innova, a popular minivan that can be had for around Rs 12L ($27K). We decided against it for we were never been big fans of minivans and the extra-room to accommodate eight people would be largely wasted on us, a family of four.

    The type of transmission is definitely an issue to be addressed when buying a car. If one’s driving experience is mostly in the US, it is only natural to be comfortable with auto-transmission. By the early 2000s, automatic vehicles had become the norm in the US so much so that we were asked to wait a week or so, if we needed the stick-shift variant of our Honda CRV. For those in this situation, it is worth knowing that there are only very few choices in the small car hatchback segment with automatic transmission – the automatic variant of Hyundai I10 is fairly popular for around Rs 5L. Choices are aplenty in the sedan and higher segments for automatic cars in India. They are generally priced about Rs 75K more or so, compared to the stick-shift version. Fortunately, we did not have to sweat over the transmission type.

    Toyota Corolla and Honda Civic which are low-end models in the US are considered uppity sedans in India. Pricing is also fairly high with the Toyota Corolla 1.8VL Altis and the Honda Civic 1.8V AT priced at around 14.5L ($32K). Sedans, considered a step-up from hatchbacks, are priced upwards of Rs 1L more compared to a similarly powered hatchback. We settled on going for a bigger hatchback as we could not justify the need for a bigger trunk-space. In that segment, our choices were the Honda Jazz, Maruti Ritz, and the Maruti Swift. Web reviews made it clear that Honda Jazz was overpriced and we were hard-pressed to find them on the roads. We wavered between the Ritz and the Swift but the Indus dealers took care of that as there was a 2-3 month wait period for the Swift. As we needed a car yesterday, our only choice was the Maruti Ritz Vxi. It also helped we were blissfully unaware of some of the popular hatchbacks in the Indian roads like the Hyundai I20, Ford Figo, Fiat Punto, etc at the time of our purchase. The spreadsheet below details the base pricing, optional equipment, and tax details:

    After we were set on the vehicle the dealer had in stock, the rest of the process went very smooth – we had to provide ID proof and proof of residence and the vehicle was ready the next day. A minor glitch was the goof-up by the RTO office whereby the Date of Delivery and Registration was off by a month – it took a month to correct it. Maruti offers a number of rebates for certain car models which were not able to cash in on. With a little flexibility, one should be able to avail of a rebate in the 10K to 30K range depending on model. Of the optional equipment we purchased, the only thing we sort of regret is going for alloy wheels for Rs 20K. For it was not an upgrade – rather, they gave us the old wheels and installed the alloy wheels in the vehicle – we ended up giving the original 5 wheels back to the dealer for free. Also, we did not know at the time of purchase the availability of a 4th year extended warranty – we ended up going for this just before our first year anniversary at a slightly higher cost (Rs 3349 vs Rs 2800) compared to purchasing that option at the time of vehicle purchase.

    The ownership experience during our first year has been stellar so far. Highway mileage is outstanding at around 17.5 kmpl and falls to around 13 kmpl for city traffic. We have had no complaints to speak of so far – a few minor issues were handled satisfactorily by the dealership during our free service visits. The first free-service was totally free – we chose to add additional floor matting for Rs 1750. The second service (6-months) came to Rs 650 for Wheel Balancing and Alignment. The third service (12-months) came to Rs 1900 Engine Oil/Filter change, Wheel Balancing and Alignment, and Smog Check certificate. The several nicks we had in the first few months were handled transparently by the Indus dealer and the Maruti affiliated insurance, Royal Sundaram (Rs 500 deductible per incident). HDFC Insurance called us a month before the car insurance expired offering to renew our insurance at Rs 8200. On double-checking with the Indus dealer, it was made clear to us that the insurance offered is not cashless – claims have to be paid upfront and a claim made to the insurance company. Royal Sundaram’s renewal offer was quite a bit more expensive at Rs 9966, but we decided to go with that anyway – they offered a couple of customer loyalty coupons (Rs 500 each) as a Thank You for the renewal.

    Romantic (1815-1910) Era Music – An Introduction

    The paring down of the clunky music in the Classical period led to the emergence of expressive and personal music by Romantic composers. Melody played loud and clear as artistic freedom triumphed. The composers probed several subject matters including an array of emotions, higher powers, distant places, mystique, and nature in all its various glories. The Germans so dominated the music that composers felt the need to break away and promote nationalism which they did by way of folk tunes, local dances, and legends.

    Industrial Revolution of Europe led to sophisticated instruments with better tuning and easier playing, which in turn paved way for the blossoming of the Orchestra. The growing middle class audience greatly inspired the ‘writing music to be heard’ trend. Composers reached deeper and brought forth enriched harmonies, passionate melodies, increased the use of dissonance, chromaticism, and expanded orchestra. Sonata, impromptu, romance, prelude, nocturne, ballade, intermezzo, and rhapsody became the rage.
    Programme music (music with a story), concert overtures and symphonic poems (one-movement orchestra pieces), incidental music (to set the mood), suites, concertos, art song (vocal musical work), technical virtuosity, shaping of music (recurring themes) are noteworthy contributions of this era. Beethoven, Schubert, Mendelssohn, Chopin, Schumann, Liszt, Brahms, Wagner, Berlioz and Strauss are the more famous Romantic composers who took composing to a higher level with their exceptional pieces.



    ComposerThumbnailISBNBest PriceDescription
    Beethoven (1770-1827)Complete Beethoven Edition Box SetB004HGQXB8$118.0885 Audio CDs. Released May 31, 2011. Complete – Covers everything that Beethoven ever composed.
    Schubert (1797-1828)Schubert: The Piano Sonatas Box SetB00004SA8A$34Performer: Wilhelm Kempff. Seven CD Set that includes all of Schubert’s piano sonatas, fragments, and completed masterworks.
    Berlioz (1803-1869) Berlioz: Requiem; Symphonie funèbre et triomphale B000GYHZ6M $16.07Two CD Set. Performer: Ronald Dowd, Orchestra: London Symphony Orchestra, Conductor: Colin Davis. Includes Requiem and Symphonie F – Grand Symphonie funebre et Triomphale.
    Mendelssohn (1809-1847) Mendelssohn: Piano Trios Nos. 1 & 2, Opp. 49, 66B0030IIZ2O $12.80Performers: Yo-Yo Ma, Emanuel Az, Itzhak Perlman. To commemorate the Mendelssohn bicentennial in 2009, cellist Yo-Yo Ma, pianist Emanuel Ax, and violinist Itzhak Perlman collaborated together for this project.
    Schumann(1810-1856) Schumann Anniversary Box SetB003B30GSY $70.1725 CD Set by various artists released May 18, 2010.
    Liszt (1811-1886) Liszt: Piano Sonata in B MinorB004NWHVD0$14.98Performer: Marc-Andre Hamelin. Includes Fantasie und Fuge uber das Thema B-A-C-H, Benediction de Dieu dans la solitude, Gondoliera, Canzone, Tarantella, Lento Assai, Andante Sostenuto, Allegro Energico, Allegro energico-Piu mosso, and Andante Sostenuto.
    Wagner (1813-1883) Wagner: Die Walkure Box SetB004NCLKJG $16.85Three-disc set released May 3, 2011. Performers: Birgit Nilsson, Leonie Rysanek, Christa Ludwig, Jon Vickers, and Thomas Stewart. Orchestra: Metropolitan Opera Orchestra, Conductor: Berislav Klobucar.
    Verdi (1813-1901) Verdi - La Traviata / Cotrubas • Domingo • Milnes • Bayerisches Staatsorchester • Carlos Kleiber B000001G5W$21.87Conductor: Carlos Kleiber, Ochestra: Bayerisches Staatsorchester, Performer: Ileana Cotrubas, Placido Domingo, and Sherrill Milnes.
    Chopin (1810-1849) Ultimate Chopin Box SetB000ICMF5S$15.165-CD Set. Conductor: Charles Dutoit, Orchestra: Montreal Symphony Orchestra, Performer: Jorge Bolet, Vladimir Ashkenazy, Claudio Arrau, Zoltan Kocsis. CD 1 Jorge Bolet, piano & Orchestre Symphonique de Montreal Charles Dutoit, conductor CD 2/CD 3 Vladimir Ashkenazy, piano CD 4 Vladimir Ashkenazy, piano CD 5 Claudio Arrau, piano.
    Smetana (1824-1884) Smetana: Complete Orchestral WorksB0012OVFIY$14.613-CD Set. Janacek Philharmonic Orchestra conducted by Theodore Kuchar.
    Brahms (1833-1897) Brahms: The Symphonies Box SetB0000041Z5$20.66Orchestra: Chicago Symphony Orchestra, Conductor: Georg Solti, Composer: Johannes Brahms.
    Tchaikovsky (1840-1893) Tchaikovsky: The Complete Symphonies Box SetB00008PW4A $23.29Five Disc Box Set. Orchestra: New York Philharmonic Orchestra, Conductor: Leonard Bernstein.
    Dvorak (1841-1904) Dvorak: Slavonic DancesB00005YD5H$7.93Orchestra: Cleveland Orchestra, Conductor: George Szell.
    Grieg (1843-1907) Grieg: Complete Music with Orchestra Box SetB00005KK4O$26.886-CD Set. Performers: Carl-Gustaf Holmgren, Urban Malmberg, Hakan Hagegard. Orchestra: Gothenburg Symphony Orchestra, Conductor: Neeme Jarvi.
    Rimsky-Korsakov (1844-1908) Rimsky-Korsakov: Scheherazade; Stravinsky: Song of the NightingaleB0006PV5VC$7.99Orchestra: Chicago Symphony Orchestra. Conductor: Fritz Reiner. Two works: Scheherazade, symphonic suite for orchestra, Op. 35 and Chant du rossingnol (The Song of the Nightingale), symphonic poem for orchestra.
    Elgar (1857-1934) Elgar: Cello Concerto; “Enigma” VariationsB000BDGWF8$6.99Orchestra: London Philharmonic Orchestra, Philadelphia Orchestra. Conductor: Daniel Barenboim.
    Mahler (1860-1911) Mahler: The Complete Works – 150th Anniversary Box SetB003D0ZNWY$46.2516-CD Set. Orchestra: Berliner Philharmoniker, Philharmonia Orchestra, London Symphony Orchestra. Conductor: Simon Rattle, John Barirolli, Otto Klemperer, Klaus Tennstedt, George Szell.
    Richard Strauss (1864-1949) Richard Strauss: 5 Great Tone PoemsB000004198$12.55Orchestra: Royal Concertgebouw Orchestra. Conductor: Bernard Haitink, Eugen Jochum. Two-CD Set.



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