What do we think about interest rates? A whole lotta nothin'.
Because our investment time horizon is measured in decades, we're much more concerned about the long-term viability of the businesses that we invest in than we are concerned about the interest rate scenario. At this early stage in our investing careers, we think interest rates are about as interesting as an old cabbage garden.
Granted, interest rates do impact stocks, but they don't impact our long-term, business-focused investment approach. Given this, we basically ignore interest rates right now. Someday, when our time horizon shrinks because David wants to retire to open a pony-riding farm, we may care more about interest rates. But not now.
What about you? Do you need money from your stocks in less than 5 years? Even more importantly, do you need steady income from your investments, or will you soon? If so, you should probably be thinking about interest rates more than we do here in Rule Breaker. For that, The Motley Fool's three real-money Retiree Portfolios invest in bond funds for steady income. Give these portfolios a good gander.
Now, looking at the headlines related to our businesses today, we see that a Saudi oil prince bought shares of eBay (Nasdaq: EBAY) and Amazon (Nasdaq: AMZN), fifty-million bucks here, fifty-million there, in a $1 billion stock shopping spree. Also in news, America Online (NYSE: AOL) is launching a free Internet service for schools. Smart! Finally, Starbucks (Nasdaq: SBUX) recently announced quarterly results that we discussed here, but today Motley Fool Research analyst Bob Fredeen offered an update on the company's expansion plans and results. Get the latest on SBUX.
All else was quiet regarding news. Stock prices moved, but one day's move is not relevant to our long-term approach. So why bother?
A DoubleTwist Interview
In our Friday BreakerPort column, we discussed Celera (NYSE: CRA) and DoubleTwist, Inc., a privately held competitor (as described in this recent article). Two things have come out of Friday's column. First, DoubleTwist wrote us after the column ran and so now tomorrow I'll be interviewing its Chief Operating Officer, Robert Williamson. If you have any questions for DoubleTwist, please post them on the Celera discussion board and I'll ask all I can. We'll run the DoubleTwist interview here on Thursday.
Second, in Friday's column I wrote that Celera had signed a multimillion dollar contract with a university. The dollar terms of this deal were not shared, so I was mistaken in reporting the size of it, as I explained in this post. My Foolish apologies -- for all we know, some professor at the university in question read the BreakerPort on Friday and went up in arms at the amount of money that I said his school was spending. In reality, we don't know how much the contract is worth. It could be much less.
Rule Breaker Beginners board
I've loaded you up with links to articles and posts, requests for questions, and more, so I might as well quit now. I'll close with yet another link, though: Yesterday we opened a new Rule Breaker board, the Rule Breaker Beginners board. If you're a beginning RB investor and you have questions, or if you're a seasoned RB investor and you ever have some basic RB questions, this board is the best place to receive an answer. So, add Rule Breaker - Beginners to your "favorite boards" list and then ask away, anytime! New RB readers, don't be shy.
Last but not least, today is the birthday of Rule Breaker founder, David Gardner. Feel free to wish him well if he's helped you out! DavidG@fool.com.
P.S. If you're looking for new Rule Breakers or Makers, study the Fool's NOW 50 index, which holds 50 of the most relevant business leaders in our world today, chosen by Fool readers and Fool editorial.
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