0802 To Mr. Buffett.

~rewritten~

Mr. Buffett, my name is Chou, Chung-Jen. We have met in the elevator at Photonic Building of Boston University on July 28. At that time, I mentioned I can improve you company's investment model so that you can increase the profits of your investments.

First of all, in order to increase profits, the investment model has to sell and buy financial products in the exact time. The investment model which I designed can detect the recession of economy. Before the prices of stock markets and commodities slide sharply, the investment model knows it according to latest economic data and sells these financial products. This model also shows when investors can buy the financial products which are worthy to own or have potential profits. My investment model made my customers successfully avoid losing their money in the recession in 2007.

In addition, my investment model has successful risk-control. The perfect allocation of investments makes perfect risk-control. Depending on the economic changes, my investment model adjusts the allocation of investments. For example, while economy goes down, the model will increase the part of bonds and decrease the part of stocks, and the model will do opposite actions while economy goes up.

Finally, I compared the return on investment of my model to the return on investment of your company in the same period. My investment model made higher profits than the profits your company made. Moreover, most my customers who used my investment model earned about 27.6% per year in the past 5 years. These evidences show my investment model can really increase your company’s profits.

0801 podcast: the economic recovery

The podcast chiefly describes the economic situation in this quarter. According to the latest economic data, it shows the worst economy will happen in the third quarter this year. Compared to 6.4 percent decline of the nation’s output earlier this year, 1 percent decline of the nation’s output in the second quarter this year represents that economic crisis is getting eased. The reporter, Jack Healy, also mentioned that even though most economists believe economy will start to recover before the end of this year, the unemployment rate will not drop down as soon as the economic recovery. People still save their money and not increase their expense, so the period of economic recovery will last longer than a half year. It is not the time to celebrate, the recession passed though.

Under the impact of the recession, many of my friends are laid off or cannot find a job. They have tried to get jobs, but companies still not want to hire people until the economy is stable. I think those unemployed friends need more time to pass the tough life. However, I believe the economy in the Asian area will recover sooner than other area in the world and probably becomes the most vigorous one. Following the recovery of economy, we have to worry about the price of commodities. The price of commodities will higher than the price in 2008, and the situation will cause another sharp inflation.