Archive: Investment Posts

Shooting a Fly with a Shotgun

Once success happens you can no longer say, “I will continue my life now as it was before.” Tennessee Williams in his masterpiece, “The Catastrophe of Success,” lays out a manifesto for the wealthy. His writing is neither flattery of wealth nor demeaning of the trappings that follow. Instead, he points to the mindset that

Money Management In One Lesson

In the classic book, Economics in One Lesson, Henry Hazlitt argues a lucid point. In the absence of strong voices bold enough to contradict bad theory, bad theory eventually argues against itself. Hazlitt points out how economic fallacies are self-expiring. And how the potentially clarifying nuances of the original idea, over time, fall off as

Know Your Finish Line

Once you’re wealthy, is there ever a reason to become unwealthy again? According to Datamonitor, millionaires in the U.S. lost $1.2 trillion in portfolio value of assets between 2007 and 2009. The U.S. lost over 4.5 million of affluent individuals. In other words, 4.5 million people who were considered affluent in 2007, were no longer

Playing Soccer on a Live Minefield

The chase for yield is dangerous.  Many people who didn’t plan properly are hurting because low interest rates were the one thing that breaks every financial plan. Low interest rates and deflation are practically impossible to protect against unless you’re fortunate to have a pension or payments not based on interest rates.  Few are that

Beware of Being Called a Sophisticated Investor

I recently had lunch with a lawyer who tried more than 150 arbitration cases against every brokerage firm in the industry. The arbitration panel is staffed by people from the industry, and it prevents anyone who is not affiliated with Financial Industry Regulatory Authority (FINRA) from participating. In other words, fee-only advisors are excluded because

The Unintended Consequence

If you’re not from the South, that strange vine that seems to permeate every vacant space is called Kudzu (http://en.wikipedia.org/wiki/Kudzu).  Native to southern Japan and southeast China,  it was introduced into the US in 1876 to combat soil erosion.  If you drive across any southern state, the impact of Kudzu is painfully clear.   When it arrived in

The Solution Problem

Nobody would buy a solution to a problem they don’t have. Unfortunately, business is marketing. The pharmaceutical industry and the financial factory have plenty in common. They create ailments and then the products to solve the problems. When did Restless Leg Syndrome all of a sudden require medication? Steven Wholoshin and Lisa Schwartz, two Dartmouth