The Importance of One Good Investment

I have recently been rereading the biography of Charlie Munger,  Damn Right.  While reading it, a passage talks about how Charlie has stated that if chosen wisely, one stock can be a sufficient investment.  Since this is so contrary to public opinion, I think it is important to expand on this.  When many people talk about gambling in the stock market, the most common conception is bankruptcy.  If all your eggs are in one basket, well if that basket is of inferior quality… ouch. Continue reading “The Importance of One Good Investment”

One Of the New Hampshire Individual Development Accounts is a Fantastic Opportunity

l always knew that New Hampshire would be a great state to live in.  Over at the Community Loan Fund, there is a fantastic New Hampshire IDA that allows for an 8-1 match if you save $500.  Do the math, and that means this program will match you with $4,000 that you can use to buy a house or expand on your education.  The opportunity cost of this New Hampshire Individual Development Account is enormous. Continue reading “One Of the New Hampshire Individual Development Accounts is a Fantastic Opportunity”

The Importance of Having a Cash Generating Asset

One of the big stories from September involved the sovereign fund of Norway.  During the month of September the fund’s assets passed a trillion dollars in value.  The root of all this wealth… oil.  Norway has wisely used black gold as a cash generating asset to build its portfolio.  The lessons that responsible governments can learn from this behavior are enormous.  For individual investors on their quest for financial independence, the consequences of learning are life changing. Continue reading “The Importance of Having a Cash Generating Asset”

How Warren Buffett Made His Money

When somebody grows their personal fortune to more than seventy billion dollars, questions are naturally asked.  How did this person make his money?  Was it earned or inherited?  For Warren Buffett, many people think his money came from Berkshire Hathaway, however, that misses a lot of his early life.  Instead, when you study how Warren Buffett made his money, you have to look to his original partnerships. Continue reading “How Warren Buffett Made His Money”

When You are Investing in Exxon Mobil, You Should Consider doing it through Computershare

When people talk about investing in oil, there are a LOT of naysayers.  Painful oil crashes, the rise of green energy, and recent public discourse are enough to turn anyone off investing in oil.  For those who have been investing in Exxon Mobil however, the checks continue to roll in.  Boom or bust, if you have held Exxon for a long enough period of time, you have beaten the market.  Naturally, then, Exxon Mobil has a DRIP plan that is the single best anybody has seen. Continue reading “When You are Investing in Exxon Mobil, You Should Consider doing it through Computershare”

The Disraeli Compromise

When you are on your journey to financial independence, you should study psychology.  One of the major ways that men like Charlie Munger get rich is that they study how the world works.  They study how to manipulate their psyche.  After that they study history to learn from the mistakes that others made.  When you look at the life of Warren Buffett, this is an interesting case study.  People see how he made a greater than sixty billion dollar fortune, and they ask how he made a mistake. Continue reading “The Disraeli Compromise”

The FHA Home Affordable Modification Program

One of the goals of pretty much every society is ensuring home stability for each of its citizens.  The reductions is crime, better upbringing conditions for children, and the pride it gives make home ownership for everyone a laudable goal.  As is often the case though, life happens.  Layoffs, sickness, and divorce are still an ever present risk for everyone.  This is where government can help.  The Home Affordable Modification Program allows the government to step in and help people keep their homes. Continue reading “The FHA Home Affordable Modification Program”

Making Money in a Recession

As I spend a portion of my day digging through some of the history of programs and credits that were passed during the great recession, I am starting to get a little… fascinated by the response governments take in confronting economic downturns.  Whether is was a 100% exclusion from ordinary taxes on Qualified Small Business Stock bought after 2010, or the passing of the Tax Credit Assistance Program, the people who maintain liquidity are put in a strong position for making money in a recession.  The more I look at how the best value investors such as Warren Buffett, Charlie Munger, and Walter Schloss managed their portfolios by keeping large amounts of cash available to them, the more I start to think that strategy should be replicated by even mom and pop investors. Continue reading “Making Money in a Recession”

Warren Buffett and Charlie Munger Investing Styles

In honor of the now legendary Berkshire Hathaway annual meeting, I wanted to take a look at the investing styles of Warren Buffett and Charlie Munger.  These two men have astounding records of investing outperformance that have resulted in both of them becoming billionaires.  Naturally I think it is important to look at the early years when some of their best gains were realized. Continue reading “Warren Buffett and Charlie Munger Investing Styles”

Measuring Your Wealth

One of the natural human tendencies that a lot of people have is to compare themselves to their peers.  In life a lot of people will be measuring your wealth in relation to their own, rightly or wrongly, as a tool of comparison.  In common parlance this deals directly with the saying, “keeping up the Joneses.”  However, since it is generally socially unacceptable to ask how much money other people have, you have to guess where you stack up. Continue reading “Measuring Your Wealth”