The Treasure Huntersecurities where it’s got five Asian currencies in it. It’s trading
at a discount to what the bank is going to pay in 2008 when it
expires. So the way I’ve structured it is I’m either going to earn
4 percent a year in the basket of Asian currencies, or make big
on the appreciation and interest. The basket has the Korean won,
Taiwan dollar, Australian dollar, Indian rupee, and the Malaysian
ringitt, and I roughly added up the rates and saw that if I hopped
on a plane and went to the different countries, the rates would not
be much different. Singapore’s interest rate is about three, Taiwan
is like one or two, Thailand is like six, and I found out that if I
physically went over there and opened up accounts in the four or
five different countries, I would get about the same yield, but waste
money on a plane ride. So I bought this security, which is going
to pay me 4 percent plus the rate of return of these currencies,
which is a great low risk way to play the Asian boom, and if it never
happens, I’ll make 4 percent in dollars, which is not the end of the
world. I’m going to hold that for two or three years.
Q: How do you discover these hidden gems across the world?
A: I read everything in terms of investments letters, and I talk to
a lot of different people in the business. It fascinates me. This is a
treasure hunt to me and I’m Indiana Jones. I’m not looking for the
Holy Grail. I’m looking for good investments. I want to go around
and find treasure just like Indiana Jones. I’m not looking for great
artifacts. I’m looking for great trades. And I’m going to hear that
from people and from newsletters.
Q: Can you tell us how many newsletters do you subscribe to?
A: One of them that I think is really great is theGartman Letter.
I subscribe to that. Another one I subscribe to isGrant’s Interest
Rate Observer. Some that I’ve subscribed to in the past include
Harry Shultz’s letter and Richard Russell’sDow Theory.