Wireless Internet is pretty sweet. But its not perfect, in fact its far from it. The range on most wireless is in the hundreds of feet, providing little maneuverability and restricting use. While you can easily get service anywhere within your home, getting service anywhere around town is nearly impossible, unless your lucky and your town has wireless. WiMax is a joint venture between some tech giants, Google (GOOG), Time Warner (TWX), Intel (INTC), Sprint Nextel (S) and also the lesser known Clearwire (CLWR). The basic idea is creating a wireless network that has the range of a cell phone (several miles) with greater bandwidth than current wireless networks. While there have been a few attempts at similar projects before, this one may be different due to the huge players involved. While it poses some upside for these big companies, it may do the most for the smaller Clearwire. Clearwire is a builder and manager of broadband networks. It stands to profit hugely if WiMax succeeds, as it would probably be acquired by Sprint, or another of the larger backers.
WiMax may become the next step in communication, and the seriousness of this venture can be seen by the involvement of Google, Time Warner and Intel. This deal, if successful, will change the way that we communicate, and also will change the mobile phone market, as demand for this product will sky rocket. Getting a little exposure, or at least keeping tabs on this story, is a good bet.
Thursday, May 22, 2008
Sunday, May 4, 2008
Why Buffet is loving the Credit Crunch
Warren Buffet is many things. Richest man in the world (worth over $60 billion,) Business man (CEO and founder of Berkshire Hathaway,) and philanthropist (donated billions to Gates Foundation.) However, he is also the most celebrated and well known investor ever. His fortune has been made by buying up quality companies at discount prices, and his simple investment strategies trump the confusing and complicated systems that many investors try to use.
So Why is Buffet loving the current economic situation? Because of the one word that could be used to describe Buffets strategy. Value.
The current trouble amid financial sector, and spread to overall macro economy, has presented an opportunity to acquire companies on the cheap. Already, Buffet has showed interest in the Bond Insurance business, announcing willingness to bail out the depressed giants of the industry. Buffet didn't stop there. When he saw that most of the firms within the sector were at their knees due to the sub prime fiasco, he opened his own Bond Insurer, under the Berkshire name. It already has received triple-A ratings from Moody's, and are already drawing many customers from the former industry leaders, MBIA (NYSE:MBIA) and Ambak (NYSE:ABK).
Outside of the financial sector, Buffet has seen value at a discount in Wrigley, the gum maker, as Mars, a Berkshire company purchased Wrigley for $23 billion. Buffet also has announced plans to invest more heavily in Europe as well as South Korea.
The current situation does not only present options for Warren Buffet, it presents opportunities for you as well. Value is something that can be found by everyday investors, and there is a lot of value out there right now. However, there are also many busts out there. Doing homework and evaluating the economics within a potential investment are crucial before making a buy.
So Why is Buffet loving the current economic situation? Because of the one word that could be used to describe Buffets strategy. Value.
The current trouble amid financial sector, and spread to overall macro economy, has presented an opportunity to acquire companies on the cheap. Already, Buffet has showed interest in the Bond Insurance business, announcing willingness to bail out the depressed giants of the industry. Buffet didn't stop there. When he saw that most of the firms within the sector were at their knees due to the sub prime fiasco, he opened his own Bond Insurer, under the Berkshire name. It already has received triple-A ratings from Moody's, and are already drawing many customers from the former industry leaders, MBIA (NYSE:MBIA) and Ambak (NYSE:ABK).
Outside of the financial sector, Buffet has seen value at a discount in Wrigley, the gum maker, as Mars, a Berkshire company purchased Wrigley for $23 billion. Buffet also has announced plans to invest more heavily in Europe as well as South Korea.
The current situation does not only present options for Warren Buffet, it presents opportunities for you as well. Value is something that can be found by everyday investors, and there is a lot of value out there right now. However, there are also many busts out there. Doing homework and evaluating the economics within a potential investment are crucial before making a buy.
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