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The Economic Value Chain
Abraham Maslow describes in his groundbreaking 1943 paper a pyramid of needs that must be met in more or less a sequence before human beings can realize their full potential. Food, clothing, and shelter form the base of…
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Freeze Your Credit
Your identity will never be stolen – until it does. And once your thing is out there, it becomes a mess. You thought you cleaned it up and then it pops up again. Millions fall…
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Risk & Return
Treasury bonds are issued by the federal government. Bonds with a maturity of one year or less are called Treasury bills but we’ll keep calling them bonds. So, say the year is 1999 when one-year…
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Stock Splits Don’t Make Stocks Cheaper
Berkshire Hathaway class A shares trade at hundreds of thousands of dollars. This below is the price for a single share… Apple shares trade at hundred and some dollars apiece. And the shares of Uber…
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On Crypto
Crypto is not an investment. It can never be an investment. The United States dollar is not an investment. The Japanese yen is not an investment. The Euro is not an investment. None of these…
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On Bear Markets
Economist Hyman Minsky once wrote that stability brings instability. The more stable things become, and the longer things remain stable, the more unstable the system gets until an eventual crisis hits. And it makes sense. When there…
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Pascal’s Wager
My first exposure to a stock market boom and bust cycle was back home in India in what was deemed the ‘Harshad Mehta scam’ of the early 1990s. It was a classic pump and dump…
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Growth Comes With Discomfort
If you are into weight training, you know that if you want to increase muscle mass and strength, you must lift heavy. Heavy to a point of discomfort. Heavy to a point of pain. Not…
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Reserves
Reserves as in safe. Reserves as in accessible. Reserves as in durable. There is nothing safer than cash. There is nothing more accessible than cash. And if done right, there is nothing more durable than…
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Yield Curves
Say someone you know is running short on funds and comes to you for a loan that he promises to pay back in a month. Will you lend him the money? And if so, will…