February 5, 2012

Escaping the Credit Card Debt Prison

Paying Off Credit Card Debt to Escape Financial Prison

When you find yourself in credit card debt it can feel like a financial prison.  Suddenly, you can't go out to eat, pick up a new shirt, or even go to a movie without worrying about the fact that you are increasing your debt or using cash that could have gone to paying down your credit card balances. Before you can figure out how to get out of credit card debt, you have to understand the reason you are in your current position.  As most financial articles and planners can tell you, there … [Read more...]

Enjoying a Cup of Coffee and Reading Fortune Magazine

Reading Fortune Magazine

I'm about to sit down with a cup of coffee and read the new Fortune magazine that arrived in the mail. It has a cover story featuring the new CEO of Wal-Mart, who took Lee Scott's title a year and a half ago. Given how much I liked Scott, I want to learn more about Mike Duke. Wal-Mart has held up fantastically during the recession, staying between $50 and $55 per share. From time to time, we've held some fairly nice positions in the stock. … [Read more...]

Don’t Spend Money to Feel Better About Yourself

Emotional Shopping Leads to Debt

I happened to be reading a forum for venture capitalists and investment bankers and there was a section for people new to the industry who work in major financial centers such as New York. We're talking about first year analysts earning between $60,000 and $90,000 including signing bonuses, and, if they are lucky, a $50,000 to $100,000 bonus depending upon annual profits, living in a majorly expensive city, who probably have significant student loans. Some of the people were advocating that … [Read more...]

Contemplations Over a Cup of 2 a.m. Tea

Wegmans Fruit Tart

It is just past 2 a.m. and I finished brewing a cup of Darjeeling tea.  I'm sitting here enjoying the fragrance of the leaves in the cup and it made me remember something ... During college, Aaron and I did our grocery shopping at the Wegmans on Route 1 in New Jersey.  Of course, living in the dorms for most of those years before we got an apartment off campus meant grocery shopping was more like picking up cereal, milk, coffee and snacks to eat at night or between meals in the dining … [Read more...]

Why the Chinese Economy Is Destined to Be Bigger than the Economy of the United States

It Is Morning in China, to Borrow a Phrase

In Surprising Facts About America's Population, I pointed out that the top 25% of people in China - the gifted students who out-test 3 out of 4 of their classmates - exceeds the entire population of the United States. This raised some concerns about my enthusiasm for the rise of China.  I thought it would be important to clarify where I and explain how this issue affects you and your family. The Economic Rise of China vs. The Political Rise of China There are two distinct issues that must … [Read more...]

The Secret World of Brooks Brothers

Before I "arrived" as they say, I had no idea how different clothes shopping was for men once they became successful.  Honestly, I never thought much about it but the assumption was that in terms of logistics, it would be just like shopping at Wal-Mart only with better surroundings, better service, higher quality and higher price tags.  You know, you walk into a Neiman Marcus or a Saks, look around at the merchandise, and then pay for it at a register if you were satisfied. I was totally, … [Read more...]

How to Solve the Trade Deficit – Part III

Knowledge Worker

This is Part III of my special on How to Solve the Trade Deficit.  If you missed the earlier parts, you can read Part I or Part II first. How to Solve the Trade Deficit - Knowledge Workers vs. Manual Workers In many ways, your question about the trade deficit has very little to do with global trade policies and everything to do with the rise of the "knowledge worker" class that Peter Drucker predicted in 1959. Drucker, the management guru who is to executives what Warren Buffett is to … [Read more...]

How to Solve the Trade Deficit – Part I

The Products the Come from a Barrel of Crude Oil and Petroleum Based Resources

I received a question from a reader named Adam, who asked about the threat the United States trade deficit poses to our long-term financial health. It was an excellent, intelligent, well-articulated question that happened to arrive at the precise moment I was in the mood to talk about such an issue. The result is a five-part essay called How to Solve the Trade Deficit that explains what the trade deficit is, why the trade deficit threatens our safety, and why the loss of manufacturing jobs, … [Read more...]

Coco Chanel Only Owned 10% of Her Business – Intelligent or Stupid?

House of Chanel Boutique Storefront

I am going to start reading several biographies of Coco Chanel before long, so I made a run to a department store today to pick up some Chanel products (I have a habit of wanting tangible representations of whatever I'm studying around the office, which is why we need "investing cabinets", which contain things like miniature Hershey Chocolate trucks and replicas of Wal-Mart Supercenters from whenever we were buying shares in those companies years ago ... it is a way I make the money … [Read more...]

The True Test of Greatness Comes in the Heart of Winter

Only in winter do the pine and cypress show they are evergreen. - Confucius points out that all trees are green when times are easy, Spring and Autumn Period When you are managing your business, your life, or money, the true test of your ability and talent will come during the bad times. Have you managed your liquidity well enough so that even the worst depression won't wipe you out? Have you conducted yourself with restraint so you don't find yourself buried under interest expense on credit … [Read more...]