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april@madhedgefundtrader.com

Report from The Orient Express

Diary, Newsletter

I was awoken from a dead sleep in the middle of the night in my suite on the Orient Express by a juddering halt and the smell of burning breaks in the air.

We were somewhere high in the Swiss Alps, and every single passenger on the first-class train had to be thinking that a murder had just been discovered.

It turned out that it had, just not what you think. In the darkness, we had hit a 400-pound wild boar astride the tracks. We spent four hours on a remote siding waiting for Swiss National Rail to deliver us a new engine.

I elicited chuckles when I ordered boar for lunch the next day. The matre’d assured me it wasn’t ready yet, as the meat had to soak in vinegar for 48 hours before cooking. That’s the kind of thing you only hear in Europe.

I boarded the train that morning at London’s Victoria Station in anticipation of the trip of a lifetime. Venice Simplon Orient Express didn’t disappoint, although I would not be surprised if the IRS questioned the $8,500 cost for the 34-hour trip as a business expense on my tax return this year.

The legendary train has featured in a dozen films (James Bond and Agatha Christie) two dozen television shows, and played a major part in countless novels. You can even buy a video game.

The modern Orient Express is, in fact, three different trains.

From Victoria Station in London to Folkestone on the coast, I traveled on a vintage British train from the 1920’s that was definitely showing its age.

Then I boarded a bus, which drove on to a flatbed rail car that whisked us through the tunnel under the English Channel. There, we claustrophobes closed our eyes and held our breath for 20 minutes, which, at the nadir, my altimeter watch showed us at 1,500 feet below sea level.

The real luxury started when I boarded a 1924 Pullman first-class sleeping car in Calais, France, lovingly restored to the day it was built.

I set my watch ahead one hour and back 100 years. Suddenly, the trees resembled those in impressionist paintings, the land was dotted with Norman fortresses, and gasoline was $8 a gallon.

 

 

The original Orient Express, from Paris to Istanbul, made its inaugural journey in 1882 and quickly became famous for its unheard-of luxury and speed. Modern bullet trains and cut-rate airlines put it out of business 90 years later.

The current incarnation started in 1977 when James Sherwood, who had built up a fortune through Sea-Land Containers, bought three dilapidated Pullman rail cars at an auction in Monte Carlo. Like all of us with insanely expensive hobbies, he sought a way for outsiders to fund his passion.

Hence, the Venice-Simplon Orient Express started luring big spenders and the romantically inclined in 1982 (click here).

I became one of the original passengers in England when my broker chartered it for a day of client entertainment, an ancient steam engine laboring all the way.

 

 

Over the next 30 years, Sherwood built Orient Express into one of the world’s preeminent luxury brands, on par with Cartier, Tiffany, and Channel.

He developed a massive global network of cross-marketing deals that tied in package tours, hotels, cruises, and other vintage trains.

Today, the parent company, Belmond, carries a market cap of $1.3 billion (click here for that site).

Ironically, the company today still only owns one of its dozens of rail cars. The rest have been sold to Middle Eastern investors with long-term leaseback contracts.

The dinner onboard is the highlight of the trip, a fabulous six-course, three-hour affair. There, you meet the other passengers, all dressed to the nines.

Most were wealthy elderly couples knocking off a bucket list item, along with a few young hedge fund managers, bitcoin investors, and a passel of mistresses.

I was one of the few Americans. I ate with a casino operator in Ireland and the owner of a manufacturing company in the UK. All I can say is thank goodness for the elastic waist on my tux trousers.

Having spent a lifetime analyzing corporate managements, I was fascinated by the operation of the train. While the onboard staff is limited to 79, they are supported by a management, marketing, and engineering team of no less than 4,500.

You don’t just show up with a 17-car train in Europe’s incredibly congested rail network. You must first file a route plan and get a clearance slot, much like any airline.

Engines and crews must be changed at every border. Mechanics are onboard with an ample stockpile of 1920’s rail car parts. Oblivious passengers are frequently left stranded behind at stations along the way and must be retrieved by taxis, which catch the train down the line.

 

 

To make up for the time we lost due to the unlucky boar, the rail authorities routed us through the 12-mile long transalpine tunnel under Splügen Pass, then along the sublime shores of Lake Como, where the train rarely travels.

We roared past George Clooney’s house, who, I am told, is a frequent passenger on the train. Amazed Italians were waving and taking pictures of us with their cell phones at every stop. Suddenly, the buildings were all shaded in pastels, the churches changed from Protestant to Catholic, and the trees resembled those in Renaissance religious paintings.

We raced over the causeway to Venice’s Marco Polo station that evening, dumping our considerable luggage into a private speedboat that whisked us away down a Grand Canal crowded with gondolas en route to the fabled Cipriani Hotel.

To be continued.

 

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-12-31 09:02:172024-12-31 09:51:25Report from The Orient Express
MHFTR

December 31, 2024 - Quote of the Day

Diary, Newsletter, Quote of the Day

“To get rich is glorious!” said Deng Xiaoping, the Chinese general who launched the country’s modern economy in the seventies.

 

Deng Xiaoping

https://www.madhedgefundtrader.com/wp-content/uploads/2013/07/Deng-Xiaoping.jpg 309 249 MHFTR https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png MHFTR2024-12-31 09:00:192024-12-31 09:50:42December 31, 2024 - Quote of the Day
april@madhedgefundtrader.com

December 30, 2024

Diary, Newsletter, Summary

Global Market Comments
December 30, 2024
Fiat Lux


Featured Trade:

(MY OLD PAL, LEONARDO FIBONACCI),
(TESTIMONIAL)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-12-30 09:06:472024-12-30 10:07:26December 30, 2024
april@madhedgefundtrader.com

December 27, 2024

Diary, Newsletter, Summary

Global Market Comments
December 27, 2024
Fiat Lux


Featured Trade:

(HOW MY MAD HEDGE AI MARKET TIMING ALGORITHM WORKS)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-12-27 09:04:392024-12-27 10:16:42December 27, 2024
april@madhedgefundtrader.com

December 26, 2024

Diary, Newsletter, Summary

Global Market Comments
December 26, 2024
Fiat Lux

 

SPECIAL ISSUE ABOUT THE FAR FUTURE

Featured Trade:
(PEAKING INTO THE FUTURE WITH RAY KURZWEIL),
(GOOG), (INTC), (AAPL), (TXN)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-12-26 09:04:192024-12-26 10:02:24December 26, 2024
april@madhedgefundtrader.com

December 24, 2024

Diary, Newsletter, Summary

Global Market Comments
December 24, 2024
Fiat Lux

 

Featured Trade:

(THE NEXT COMMODITY SUPER CYCLE HAS ALREADY STARTED),
(COPX), (GLD), (FCX), (BHP), (RIO), (SIL),
(PPLT), (PALL), (GOLD), (ECH), (EWZ), (IDX)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-12-24 09:04:022024-12-24 09:59:07December 24, 2024
april@madhedgefundtrader.com

December 23, 2024

Diary, Newsletter, Summary

Global Market Comments
December 23, 2024
Fiat Lux

 

Featured Trade:

(A BUY WRITE PRIMER)

(AAPL)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-12-23 09:04:282024-12-23 11:34:05December 23, 2024
april@madhedgefundtrader.com

December 20, 2024

Diary, Newsletter, Summary

Global Market Comments
December 20, 2024
Fiat Lux

 

Featured Trade:

(THE EIGHT WORST TRADES IN HISTORY)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-12-20 09:04:512024-12-20 13:09:00December 20, 2024
april@madhedgefundtrader.com

December 19, 2024

Diary, Newsletter, Summary

Global Market Comments
December 19, 2024
Fiat Lux

 

Featured Trade:

(A CHRISTMAS STORY),
(THE U-HAUL INDICATOR)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 april@madhedgefundtrader.com https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png april@madhedgefundtrader.com2024-12-19 09:06:022024-12-19 11:49:20December 19, 2024
DougD

A Christmas Story

Diary, Newsletter

When I was growing up in Los Angeles during the fifties, the most exciting day of the year was when my dad took me to buy a Christmas tree.

With its semi-desert climate, Southern California offered pine trees that were thin and scraggly at best, and we didn’t want to chop down the view that we had.

So, the Southern Pacific Railroad made a big deal out of bringing trees down from much better-endowed Oregon to supply local holiday revelers.

You had to go down to the freight yard at Union Station on Alameda Street in downtown LA to pick them up.

I remember a jolly Santa standing in a box car with trees piled high to the ceiling, pungent with seasonal evergreen smells, handing them out to crowds of eager, smiling buyers for a buck apiece.

Watching great lumbering steam engines as big as houses whistling and belching smoke was enthralling. We took our prize home to be decorated by seven kids hyped on adrenalin, chugging eggnog.

A half-century later, the Southern Pacific is gone, the steam engines are in museums, anyone going near a rail yard would be mugged or arrested for vagrancy, and Dad long ago passed away. Dried-out trees at Target for $60 didn’t strike the right chord.

So, I bundled the kids into the SUV and drove to the Eastern shore of Lake Tahoe, on the Nevada side, a $10 US Forest Service tree-cutting permit in hand.

Deep in the forest at 8,000 feet, the kids, hyped on adrenalin, made the decision about which perfect 12-footer to take home. I personally chopped it down and dragged it along the ridge, huffing and pugging all the way. I then tied it to the roof and drove us home. Lifting a 200-pound tree gets tougher every year. Thank goodness the kids are getting bigger.

I netted three trees that day, one for each home and one for my oldest daughter. I figure I saved myself $600.

With any luck, these memories will last until the next century, long outlasting me.

Now, the story really comes full circle. I was in Portland, Oregon, a few years ago and had some free time to kill. So, I wandered across the river to the Oregon Rail Heritage Center.

What do I see, but Southern Pacific engine no. 4449, the exact same locomotive I marveled at in LA 65 years ago, all decked out in its glorious orange and red paint.

It was like discovering a long-lost family member. The 435-ton, 72-year-old behemoth was recently rebuilt from the ground up by a dedicated team of similarly aged volunteers to serve as the city’s Polar Express train in 2014.

For the link to the museum, please click here.

Union Pacific still maintains in running condition some of the largest steam engines ever built for historical and public relations purposes.

One, the “Old 844,” once steamed its way over the High Sierras to San Francisco on a nostalgia tour. The 120-ton monster was built during WWII to haul heavy loads of steel, ammunition, and armaments to California ports to fight the war against Japan. The 4-8-4-class engine could pull 26 passenger cars at 100 mph.

When the engine passed, I felt the blast of heat of the boiler singe my face. No wonder people love these things! To watch the video, please click here and hit the “PLAY” arrow in the lower left-hand corner.

Please excuse the shaky picture. I shot this with one hand while using my other hand to restrain my over-excited kids from running onto the tracks to touch the laboring beast.

Merry Christmas
John Thomas

Train 4449

Long Time No See, Old Friend

 

https://www.madhedgefundtrader.com/wp-content/uploads/2019/12/john-christmas-trees-e1577182165465.png 380 500 DougD https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png DougD2024-12-19 09:04:122024-12-19 11:48:55A Christmas Story
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