The house sitters have moved into my townhouse for the next month, the security system has been upgraded, and we are off to New York. It is 9:54 a.m., Central Standard Time, and I am flying somewhere over the Midwest on an Express Jet bound for Newark, where a driver will pick me up and…
You have to think independently and make up your own mind. That is the responsibility each of us has. That doesn’t mean you can’t look for input from others but you cannot outsource the obligation to rationally think, decide upon a course of action, and live with the results of your decision. Apparently, Munger hasn’t…
Over the past few years, I have become more and more convinced that the single biggest challenge most people face when it comes to achieving financial independence is the interest expense they pay on credit card debt, student loan debt, home mortgages, consumer debt, and other liabilities. [mainbodyad]Think about it like this. If all you…
Tonight, we had dinner at Aaron’s parents house to celebrate some birthdays in his family. His dad made fried catfish and his mom an angel food cake, both of which were good.
In 1977, Berkshire Hathaway invested nearly 25% of its net worth into Buffalo Evening News, a newspaper in upstate New York. Buffett and Munger paid $32.5 million for the company, which had only earned $1.7 million pre-tax in 1976. The theory was the paper could launch a Sunday edition and increase profits substantially. A judge…
There is considerable academic evidence that one of the major drivers of income inequality in the United States is the difference in family formation, and assortative mating habits, between the upper and lower classes. Stated plainly, the upper class is more likely to get married, stay married, and have children within that marriage, while the lower class is more likely to have children out of wedlock or divorce. The results to net worth and income can be enormous over a lifetime.
One of the things I keep in my office is a set of files detailing things I like. I’ve always said that in another 7 years or so when I reach my mid-thirties and probably have kids, I will switch my primary residence to an estate or high rise in a tax-free state like Florida,…
I’m re-reading “Damn Right! Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger” by Janet Lowe and came across a passage that illustrates exactly the sort of thing I’m talking about when I harp on acquiring assets that constantly churn out piles of cash for you spend, redeploy into new investments, give to charity, or…
[mainbodyad]It always struck me as particularly stupid when people complained about the cost of gasoline, even when I was a teenager with very little money just learning about how investing worked. It seemed perfectly obvious to me that if an increase of $1 per gallon cut into your standard of living, you were living so…
How do you know if you are on the right path and that you will satisfied with your choices? [mainbodyad]Close your eyes for a moment. Imagine that for the next ten years, you continue to do exactly what you do now. You eat the same foods, dress the same way, go to the same job,…