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-  THE FRIDAY LETTER  -

(emailed weekly, from Gilder Publishing,
for friends and subscribers)

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 | http://www.gilder.com/ | Issue 301.0/July 6, 2007

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HEADLINES:

-  The Week / Gilder on Investing in Israel
-  Friday Feature / Karlgaard: The 231-year Boom
-  Friday Blogger Bonus / From the Gilder Telecosm Forum
-  Readings /


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Hosted by George Gilder and Steve Forbes | October 17 – October 18
The Sagamore Resort | Lake George, New York

 

Register online today and save 70%: www.Telecosm.info

 

The Week / Investing in Israel

George Gilder, June 2007 Gilder Technology Report:

The apparent randomness of a phenomenon does not necessarily signify that it is caused by chance processes. Creativity always comes as a surprise to us. An apparently random pattern might signify a series of creative surprises as much as a roar of random noise.

 

In regard to investments, the apparent randomness of price movements and other market indices does not suggest a random or inexplicable process. It reflects the surprises of human creativity. To understand them you must use a microscope to investigate the details of their operations rather than an oscilloscope to measure the frequencies of their volatility.

 

From the distance, Israel looks like a country fraught with random violence and volatility. Visiting it one finds instead an incredible density of information and creative entrepreneurship. I believe it will prevail and thrive long after its enemies are forgotten. In the meantime, investors will do well by investigating the thousands of its technology companies. I intend to do so.


To read the complete June issue of the Gilder Technology Report, become a registered member of the GILDER TELECOSM FORUM. Visit
http://www.gildertech.com/ for subscription details.

 

The Gilder Telecosm Forum

George Gilder, June 2007 Gilder Technology Report: After around one million five hundred thousand words of newsletters, articles, and books on technology, I contemplate the increasing obsolescence of the literary form and distribution model of the Gilder Technology Report. In the face of the upside surprise of the 24/7 company coverage in the Gilder Telecosm Forum, our exclusive subscriber-only message board on the web, and in comparison to the reach of the emailed Gilder Friday Letter, it no longer makes sense to compose, print, fold, and snail through the land a monthly eight-page review that often lags behind the coverage in the Forum and reaches a tenth of the audience of the Friday Letter email. It no longer makes sense even to post such a document on the web.

 

This is it for the Gilder Technology Report (GTR). Long live the Gilder Telecosm Forum (GTF), where Charlie Burger, Nick Tredennick, and I will post our reports and reflections, as we have been doing for the last ten years.

Become a GTF member today: http://www.gildertech.com/
About the GTF
The web’s premier technology investment discussion forum, the Gilder Telecosm Forum is a powerful network of talented, tech-savvy investors and thinkers who collaborate online daily by utilizing the very technologies that George Gilder has celebrated and written about for eleven years in Gilder Technology Report.


Friday Feature / Karlgaard: The 231-year Boom

 

Rich Karlgaard, Forbes.com (7/4/07): Per capita income in 1776, in the 13 colonies, on a purchasing parity basis adjusted to 2007 dollars, was less than $500. More or less.

 

Today, in the U.S., per capita income is exactly $46,018.47. (Take the GDP annual run rate and divide it by this July 2007 population estimate.) It's a stunningly large number, don't you think?

Not to brag excessively--Forbes.com being a worldly website, with even a French reader or two--but the U.S. has performed exceptionally well since its founding 231 years ago.

 

What were the American founders drinking? What was in the water? They managed to get so many things right about business and economics.

 

Starting with the words “life, liberty and the pursuit of happiness." (Or was it “purfuit" and "happineff?” One can never tell with Jefferson's penmanship.) Free speech. Church-state separation. The rights against search and seizure and self-incrimination. We don't always think of these as economic prescriptions, but they were.

 

Here is one that gets little credit. Without the Commerce Clause, a protectionist moonbat like New York's Sen. Chuck Schumer could start a tariff war against another protectionist moonbat like South Carolina's Sen. Lindsey Graham. Chuck would no doubt protect the Manhattan's garment industry against the scourge of cheap South Carolina clothes. And Lindsey could shield his church-going folk against usurious New York bankers.

 

And America would be poorer. A lot poorer.

Check out Rich’s Digital Rules Blog:

http://blogs.forbes.com/digitalrules/ 

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Friday Blogger Bonus / From the Gilder Telecosm Forum

George Gilder Gilder Telecosm Forum (7/2/07): Last week I urged support for Anadigics (ANAD) as a way to play the continuing dominance of Qualcomm (QCOM) in the face of its legal imbroglios, if you are worried about them. (I really am not.)

Again, the power amp is the critical path element in all wireless technologies; it does what is hard, even apparently impossible—converting a pico (10 to the minus 12) watt inkling of info in the noisy crucible of the air into an audible voice (or now image) on the phone. It is the only functionality that cannot be offloaded to TSMC or some other fab. The physical fab sophistication is key to engineering a device that can do this analog measurement and amplification of the ineffable. ANAD has it beat.

To become a GILDER TELECOSM FORUM member, visit: http://www.gildertech.com/
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Readings /

 
The Weekly GTI
http://www.gtindex.com/

Supreme Court Sides with Business
http://www.forbes.com/home/business/2007/07/05/supreme-court-business-biz-cx_0706oxford.html

Sigma In, Yahoo Out
http://www.globes.co.il/serveen/globes/DocView.asp?did=1000227903&fid=1176

 

LNOP in Bed with Cisco
http://chip.seekingalpha.com/article/39626

The Cause and Cure of Poverty
http://www.acton.org/blog/?/archives/1736-The-Cause-and-Cure-of-Poverty.html

Foreign Investors Face New Hurdles
http://online.wsj.com/article/SB118364981579558088.html?mod=todays_us_nonsub_page_one

 

The Computer of the Future

http://www.forbes.com/technology/2007/07/03/apple-iphone-computers-tech_cx_rr_0704iphone.html

 

Triumph of the New
http://www.aei.org/publications/filter.all,pubID.26393/pub_detail.asp

 

The House that Helped Build Google
http://www.usatoday.com/tech/techinvestor/corporatenews/2007-07-04-google-wojcicki_N.htm

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FRIDAY LETTER STAFF

Editor: Mary Collins George / mcollins@gilder.com

Research: Sandy Fleischmann / sfleischmann@gilder.com

 

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