Disabled Nation

10 05 2011

The number of people receiving a disability pension now exceeds 860,000 – or 220,000 more than the number claiming unemployment benefits. It costs the Budget $13 billion. In the past 10 years the number claiming disability pensions has climbed 11 per cent.

From the new budget:

PEOPLE claiming a disability pension will be allowed to work up to 30 hours a week and still receive part of their welfare payments in a bid to get more people back in the workforce.

Except disabled people by definition cannot work!!! According to Centerlink:

You may get Disability Support Pension if you are unable to work for 2 years because of illness, injury or disability, or if you are permanently blind.

This is pretty much an admission that a large number of so-called disabled disabled people are not actually disabled. What sort of perverted welfare addicted nation is this and why do these people get disability pension when they are actually not disabled by government’s own definition and admission?

via Andrew Bolt





Value Investing – Margin of Safety

3 05 2011

I was musing about Benjamin Graham’s Margin of Safety (MOS) during my waking hours last night and it occurred to me that MOS is not only a great tool for finding undervalued businesses but also to time the market. I know that value investors are not supposed to time the market but good MOS can only develop under two conditions: 1 – the business is genuinely undervalued during normal market conditions (this can occur for many reasons); 2 – the market as a whole declines reducing the price of all stocks (e.g. during the GFC). In the second scenario the by-product of MOS is to assist us timing the market. Obviously, MOS cannot tell us the top or the bottom of the market but when the stocks decline across the board a juicy MOS would only develop closer to the bottom. “It’s about being approximately right, rather than absolutely wrong”.