Tell me what you think of the following statement: “American manufacturing has been destroyed over the past 20 years? Going back further, it’s nothing like it was in 1960. Everything is made in China now.” [mainbodyad]If you agreed with the statement, congratulations! You failed. Miserably. Start thinking for yourself and stop watching the news commentators…
I love lemon cake, as you learned in the post about Duncan Hines trying to break my heart when we stopped eating it because of the trans fats. I’m working from the home office tonight, responding to all of your comments and submissions, and Aaron comes in to tell me he is making lemon cream…
For those of you who prefer visual data, watch this BBC video, which is up to 3,757,003 views after going viral on the net a few days ago and has been lighting up the economic blogs. In 4:48 seconds, you will see 200 years of human economic and health records, organized by country. I…
One way to begin making money is to create and own synthetic equity in other companies. This technique is one that Aaron and I used early in our career and was very lucrative for us, providing a stream of profit and cash for us to fund our other investments.
I found some of our old tax filings from last decade! It turns out that around our college days, living together in the apartment complex next to the Quakerbridge Mall in Princeton, New Jersey, our combined household income was somewhere between $80,000 and $100,000 even though neither of us had full-time jobs and we were both students attending school on music scholarships. (This is the same apartment that I showed you a few months ago.) The difference between the two figures depends on whether you count unrealized capital gains as “income” since our net worth was increasing but it didn’t reflect in our taxes at the time.
This upcoming week is going to be busy. I have to finalize the accounting approval for last year before sending off all of the records to the firm that prepares our taxes, I have to drop off the finalized terms contract for the attorneys that are helping me explore launching my own financial vehicle, I have to write two or three new pieces of About.com content, I need to continue studying CSS because I love it, and I have to work on a lot of other stuff that you probably don’t really want to hear about – I’d like to get through the technology sector annual reports, finalize the list of stocks I plan to buy through my pension plan once the upcoming contribution is finalized, etc.
Years ago, I vaguely remember hearing someone comment that it was interesting how differently we measure wealth today compared to British society at the end of the 19th century. This made me realize that most people don’t even know there is a difference; that there are primarily two ways you can think about measuring your wealth and which you choose for your own household will influence how you behave, the capital structure you employ, and even how you think about risk.
I started thinking about people who lose everything, or what Charlie Munger calls returning “to Go”, as in the Monopoly board. Once you are rich, your primary motivation shouldn’t be to get richer, it should be to avoid wipeout risk, or returning to go. But as a training exercise, I decided to contemplate what I would do if I woke up tomorrow and the last ten years had been a dream. What would my first course of action be to rebuild until I got my financial affairs in order?
One of the most common questions I receive is, “how do you come up with a list of stocks for your portfolio that you then research further?”. Here is a brief overview.
The single most important line in the President’s State of the Union speech to Congress last night hasn’t gotten a lot of attention. Here it is: Over the next ten years, nearly half of all new jobs will require education that goes beyond a high school degree. And yet, as many as a quarter of…