Date: June 10, 2014

What’s Up with That?!?!

Last week, there were at least three announcements that made me scratch my head and think “are you serious?”

Apple spent $3 billion to buy Beats, a headphone maker which sells inferior products as my experts tell me. Good job Beats!

Steve Ballmer paid $2 billion for the embattled L.A. Clippers. My best friend whose group recently purchased the Milwaukee Bucks for a record $550 million also bid on the Clippers and valued the franchise at well under $1 billion. Donald Sterling gets rewarded for being a racist and lunatic.

Troubled PIMCO, which I have written about before HERE, coaxed former insider Paul McCulley to unretire. Reading into the press release, McCulley who is best known in retirement for his long mane of hair with beard to match committed to working only 100 days per year or roughly 40% of the time. Does anyone else think Bill Gross was desperate?!?!

Smart people sometimes do dumb things. Smart people who are rich sometimes do even dumber things. Why? Because they can…

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Paul Schatz, President, Heritage Capital