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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, would…
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Equity Risk Premium
A widely known way to value a stock is its price to earnings ratio. It tells us what investors are willing to pay for each dollar of profit a business behind that stock earns. 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…
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A Pension Plan Of One
How long will you live? Average life expectancy these days for a typical American is about 80 years. And that life expectancy is somewhat distributed like this… It is skewed left because some unlucky few…
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Annuities – Directionally Right But Mostly Wrong
Annuities are insurance products. And insurance is an expense. It is never an investment. What do you get for that expense? Risk reduction (definition of insurance) but above all, peace of mind. You buy life…