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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 experience with a stock market boom and bust cycle was back home in India in the early 90s in what was deemed the ‘Harshad Mehta scam’. 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…
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Equity Risk Premium
The stock market’s price to earnings ratio is a decent way to gauge how cheap or expensive stocks are. It tells us the price investors are willing to pay for each dollar of profits the…
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Perspectives
A wise woman once said that when in doubt, zoom out. So zoom out I did. This is what a 40-year chart of the Dow Jones Industrial Average looks like… Add in reinvested dividends and…
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Mind That Concentration Risk
Rule number one – don’t lose money. Rule number two – don’t forget rule number one. That of course is classic Buffett. So, say you have a choice between investing in the hottest tech stock around…