Executive Summary: I work out at a gym whose motto painted on the wall is “Stronger Than Yesterday.” This motto has nothing to do with anyone else. It’s solely about being better than you were the day before. It’s about constantly improving and doing the right things each day to continue moving in the right direction. Focus on the process. Enjoy the journey. It’s the same when it comes to your finances. Don’t worry about anyone else. What they are doing is irrelevant. Get your plan in place and then do the right things everyday to keep marching towards the goal of true financial independence…financial freedom…whatever that may mean for you. Continue reading ““Comparison is the thief of joy.””
I typically focus on traditional investments like stocks, bonds, real estate and commodities, but I want to mix it up today. There are other investments that may be more interesting and, certainly, more tangible / usable. Continue reading “Non-Traditional Investments -> Luxury Goods”
They say to “buy and hold,” but is that really the best approach? I don’t believe it is for many people. Let me explain why…
Below is a fantastic chart from Michael Lebowitz. The chart shows how long it took an investor to regain their purchasing power after major U.S. stock market peaks going back to 1900.
The time-frames to breakeven (net of inflation) have ranged from 14 to 29 years with an average of about 22 years! Think about that for a moment. Twenty-nine years is about as long as most people’s entire retirement!
Continue reading “Over 22 Years To Get Your Money Back?”
Have you ever heard of the volatility tax? In case you haven’t, it’s the drag exerted on investment returns from volatility.
In other words, even if two different investments provide the same average annual returns, the investment with more volatility will deliver lower total returns. Let me illustrate. Continue reading “Beware the Volatility Tax”
Each year Warren Buffett pens a letter to shareholders, which has become a must-read for investment professionals and individual investors alike. Here, I will highlight some excerpts I found particularly interesting and relevant from this year’s letter (released this morning).
Continue reading “Warren Buffett’s Annual Letter to Shareholders – Just the Highlights”