Business Week - November 10, 2008

Ranking Free-Market Economies (Global Competitiveness Report, 08-09)

Openness to Capital Flows:
1. Hong Kong
2. Mauritius
3. Sweden
4. Iceland
5. Finland
6. Singapore
7. Estonia
8. Germany
9. Switzerland
10. Denmark
19. Canada
20. U.S.

Low Trade Barriers:
1. Hong Kong
2. Singapore
3. New Zealand
4. Chile
5. Finland
6. Slovak Republic
7. Sweden
8. Ireland
9. Czech Republic
10. Denmark
21. U.S.
24. Canada

Absence of Distortions from Taxes and Subsidies:
1. Hong Kong
2. Singapore
3. Chile
4. Iceland
5. South Africa
6. New Zealand
7. Norway
8. Estonia
9. Ireland
10. Netherlands
34. Canada
35. U.S.

Percentage of 25 to 34 year olds with higher degrees (OECD, 2006)
1. Russia
2. Canada
3. Japan
4. Korea
5. Israel
6. New Zealand
7. Ireland
8. Belgium
9. Norway
10. France
12. U.S.

How Apple Does It (Apple's former director of industrial design, Robert Brunner)
Support design at senior levels; design for more than decoration; be original; and launch products quickly and often.

Stocks
Stocks have been the top-performing asset worldwide since 1900. The Australian and Swedish markets have led the way, with annualized real returns of nearly 8% each through 2007, compared with a 5.8% average for world stock markets. In recent years, though, bonds have beaten equities in 10 out of 17 countries, including all the largest markets, according to Global Investment Returns Yearbook. A team at London Business School found that the annualized real return on a world index of stock markets from 2000 to 2007, in US dollars, was just 1.3%.

Where Cash-Rich Funds Are Placing Their Bets
David Winters, Wintergreen:
-"the trifecta" is buying really good companies at a really good price with good management
-likes Berkshire Hathaway (Warren Buffet's holding company) and Schindler Group (Swiss maker and servicer of elevators and escalators)

Bruce Berkowitz, Fairholme:
-looking at companies with strong cash flows, particularly in health care and defense
-likes United Healthcare and WellPoint (HMOs), Pfizer and Forest Laboratories (big pharmaceuticals)

Matt McLennan, First Eagle Global
-buying in Asia, particularly Japan
-likes Fanuc (leader in robotics), SMC (make of pneumatic components), Aioi Insurance