25 August 2018 in Investing

The Perfect Business – Dow Theory Letters

First published in the early 1970s, in the Dow Theory Letters and updated in 2014. A 12-point checklist for the perfect business. Some Highlights. The ideal business... (2) offers a product which enjoys an "inelastic" demand. Inelastic refers to a product that people need or…
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26 September 2018 in FIRE, Investing

The 7 Stages of Financial Independence

Joshua Sheets' 7 stages of financial independence. I could expand these out even further and I might do that sometime. I also think the stages oversimplify because wealth isn't linear and you can straddle multiple 'stages' at the same time. Regardless, it's that simplicity that…
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20 September 2018 in Investing

The greatest enemy of financial well-being is not poverty but debt

Thibaut on Twitter: "The greatest enemy of financial well-being is not poverty but debt. Debts takes away your options and freedom of movement. Don’t mortgage your future to pay for your present. Don’t commit your life to making money to pay for your past. Leave…
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19 August 2018 in Investing

Here’s How Much Investment Returns Matter Based on Net Worth

Someone who saves and invests $10,000 each year at a 7% interest rate will accumulate $100k in 7.84 years. Out of this $100k, 78% of it will be composed purely of savings. The other 22% will be composed of investment returns.
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25 August 2018 in Investing

Jim Collins: The Simple Path to Wealth – Talks at Google

The 4% rule, broad-based stock indices, how to think about money and investing to build wealth, how to avoid debt, what the stock market really is and how it really works, How to invest in a raging bull, or bear, market, and specific investments to…
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21 August 2018 in Investing

Getting Rich vs. Staying Rich

Morgan Housel on Getting Rich vs Staying Rich. Some highlights... Everything in the economy is cyclical. Nothing great or terrible is likely to stay that way for long, because the same forces that cause things to be great or terrible also plant the seeds to…
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19 August 2018 in Investing

Saving is For the Poor, Investing is For the Rich

If Total Assets * Expected Annual Return > Expected Savings this means your investments are earning you more than you are saving, so you should focus on your investments. However, if you can feasible save more than your assets can earn you in a year,…
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19 August 2018 in Investing

Let Me Convince You To Save Money

Past a certain level of income, what you need is just what sits below your ego. Everyone needs the basics, and once the basics are covered there’s another level of comfortable basics, and past that there’s basics that are both comfortable, entertaining, and enlightening. But…
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13 August 2018 in Investing

How The Economic Machine Works

An unconventional approach to economics that helped Ray Dalio anticipate (and side-step) the global financial crisis. When you understand that the economy is nothing more than the accumulation of all human transactions, it becomes fractal. Dalio explains the economy in terms of 3 forces – Productivity Growth,…
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13 August 2018 in Investing

Jim O’Shaughnessy – Things I know I don’t know.

I don’t know how the market will perform this year. I don’t know how the market will perform next year. I don’t know if stocks will be higher or lower in five years. Indeed, even though the probabilities favor a positive outcome, I don’t know…
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14 August 2018 in Make Money

Millionaire Math: 13 Ways to Make a Million Dollars

13 ways to a million dollars: Salary of $50,000 for 20 years Salary of $100,000 for 10 years Salary of $250,000 for 4 years Earn $114 per hour, every hour of the year 5,000 people buy a $200 product 2,000 people buy a $500 product…
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13 August 2018 in Investing

Naval – How to Get Rich (without getting lucky)

Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth. Status is your place in the social hierarchy.
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13 August 2018 in Investing

Wealthy people are obsessed with money

Wealthy people claim they don’t think much about money. That’s bullshit; they are obsessed with money. The notion that rich people don’t think about money is an attempt to dampen resentment (e.g., revolution) from the 3.5B people who have fewer assets than the wealthiest 12…
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