Ventures Update April 2016

695 Riverview Drive

This is the first quarter that I can say things are going as we expect at 695 Riverview Drive. All 9 units are occupied. All 9 tenants are current on their rent. The manager, Panzera Realty, produces a reliable, accurate report each month. The bottom line shows it as well. With reliable tenants and much of the deferred maintenance from the previous owner completed, we are saving for future improvements, or possibly cash for another purchase.

The following pictures are from the stairway maintenance project I completed in December.

The old steps were uneven. The wood was beginning to rot and the nails were coming out.
The old steps were uneven. The wood was beginning to rot and the nails were coming out.
Removed the old steps and patched the side of the building with stucco mortar.
Removed the old steps and patched the side of the building with stucco mortar.
Reassembled with new wood.
Reassembled with new wood.
Finished the railing.
Finished the railing.

Simple Kneads Gluten-Free Bread

Simple Kneads is really taking off. They are gradually adding retail and food service distribution and as of 31 March, they are selling bread directly from the website. The bread is selling fast and the vendors and customers are happy.

Simple Kneads Website

Simple Kneads Facebook Page

Kineomen

Nothing significant to report!

The Stock Market

I am still “all-cash,” and have been since December 2013. Per my previous post, I continue to watch 4 specific indicators. The first 2 indicators, Total Market Cap / GNP “Buffett Indicator,” and economist John Hussman, are hard-negative and I am therefore not looking into the market. I’ll wait for a better opportunity.

Click here for a recent commentary by John Hussman. He is very technical, and currently pessimistic, but he is consistent in his analysis and he makes sense. From week to week, he uses the same indicators week to week rather than chasing news headlines, and he uses only indicators that have a strong correlation to future results in the S&P 500 specifically. He has incorrectly predicted market crashes in the past, but he discusses these failures in his commentary. He doesn’t claim that there will be a crash. His claim is that because of overvaluation, the potential long-term upside is too weak to justify the exaggerated short-term risk of such extreme valuations.

Vino de Coco

I plan to visit the company in the Philippines in December–all business of course!

Click the picture for the website.
Click the picture for the website.

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