image_pdfimage_print

One of the most important things you should do as an investor . . . (Icahn and Buffett)

One of the biggest issues with investors is expectations. We live in a world where people want every month, every quarter, every year to be profitable. This short term thinking destroys capital. I’ve seen it over and over again. People buy what’s hot in the market  and get burned when it falls. It’s THE vicious cycle for losing money.  So what should you do? Below are two of the most successful investors, Carl Icahn and Warren Buffett. They tell you in a very short and concise way what you should do. The problem is that it’s completely contrary to what everyone else in the world of investing actually does. Listen to Icahn and read Buffett and then decide what you’re going to do and how you’re going to act. First, Carl Icahn (for the whole interview with Icahn, click here) Second, Warren Buffett.     So you can do two things.
Continue Reading

Categories: Markets and Strategy.

The 8th Wonder of the World

Albert Einstein once said . . . “Compound interest is the eighth wonder of the world. He who understands it, earns it . . . he who doesn’t . . . pays it.” No doubt Einstein is correct . . . time is the essential component to compounding your wealth over time. It’s something that every parent should be teach their kids, every grandparent should be teaching their grand kids and every school in this country should be teaching it in the classroom. To illustrate the importance of this principle here’s a story of one of the greatest American’s that has ever lived, Benjamin Franklin . . . Let’s take another look using an ETF (Exchange Traded Fund) that tracks the S&P 500, the SPY. If you were to invest in the SPY back in 2005 (10 yrs. ago) you would have a return of 75.37%, a very nice gain. However,
Continue Reading

Categories: Personal Finance.
image_pdfimage_print