Well, it has been a month since the demise of Finacorp.? I don’t know for sure why the company died, but I suspect that it overexpanded, and could not support its larger size.

As for me, I have been mulling over the possibilities and have settled on two main courses of action:

• Setting up my own asset management shop
• Setting up my own consulting business on investment, business, and insurance matters

I have left aside the idea of outside employment for now, whether in the private sector or the government.? I have also shelved the idea of writing a book.? I am still reluctant to write a newsletter, because of my experiences in writing about individual stocks.? I was right more often than I was wrong, but when I was wrong the response from readers was disproportionate.

Asset Management

With asset management, I have a great track record with my own portfolio going back to 8/31/2000, complete with all of the brokerage statements to back it up, and a consistent operating philosophy.? I need to get a number of legal matters straightened away before I can start up, though I would consider plugging in to some other firm to provide the?? infrastructure that I need.? If you have an interest in that, let me know.? In the early phase, minimum investment amounts will be lower.? Not sure on where that will be yet.

I will likely offer my strategy in two forms: long only, and market-neutral.? Between the two funds, you can express your own bullishness, while I hopefully continue to outperform the S&P 500.

As it is, I have a few nibbles as far as larger investors go.? If any of them hit, that will propel me forward faster.

Consulting

With consulting, I have a few clients already.? I call my consulting applying math to complex business and investing problems.? As it is, when I worked for Finacorp, many of my projects were consulting for clients, providing tailored research to meet a need.

In the past that has involved:

• Analyzing complex securities to ascertain value, or lack thereof, whether fixed income, equity, or whatever.? I am happy as a clam when digging through complex legal documents.? (I know, that is perverse.)
• Analyzing portfolios of equities or debts in order to improve performance.
• Being a second opinion on complex investment questions.? I can provide the contrary opinion on investments that are moving against you.
• Complex insurance questions.? I am a life actuary, and more than able to analyze tough questions there.

The future could involve:

• For small municipalities: do you need someone on your side?? I am not able to be fooled by Wall Street investment banks that will pitch you all manner of complex products.? I will tell you he truth, and be on your side in complex negotiations.
• The same applies to DB plans and endowments.? Is your consultant giving you a bum steer?? Are you wondering if you should fire him?? I can help with that.
• And more.? I have many skills with data mining, setting compensation schedules for salesmen, and other complex business questions.
• But most controversial: you can hire me on the question of whether you need a consultant or not.? Most of the time, the answer is no, unless you have a small staff with no experience in the area in question.? Most of the consultants that I dealt with in corporate America were less competent than the middle management of the firms engaging the consultants.? Would that managements would trust their middle managers.

Look, I shoot straight.? If I can’t solve a business problem, I will refuse it.? If I try and find I cannot get to a solution, I will not take payment.? My rule is that I don’t get paid until my client is happy with my work.? I never want to live with negative word of mouth; I want a bevy of clients very happy with my consulting work.? That fits with my work attitude, because I look for the success of my clients first.

That is what I am up to.? I am open to other ideas, feel free to e-mail me.? Please understand that I get a flood of e-mail everyday.? I read it all, but I can’t respond to all of it.

Thanks to all of my readers.? You make my blog better.

Sincerely,

David