About
Content
Store
Forum

Rebirth of Reason
War
People
Archives
Objectivism

Post to this threadMark all messages in this thread as readMark all messages in this thread as unread


Post 0

Thursday, February 19 - 6:49pmSanction this postReply
Bookmark
Link
Edit

Hi all,

 

I'm wondering what you think are good places to get investing advice from. I already about Yaron's lecture on it (investing: an objective approach) and am wondering what you guys think are other good sources of information. I was looking around the objectivism online forum and they said sites/people/whatever like IBD, the motley fool, capitalistic pig, and Jim Rodgers are good. I'm wondering what you guys think. My dad thinks Jim Cramer from Mad Money is good but a lot over at the forum said he wasn't, so I'm not sure what to think (I guess I'll try to watch his shows and make a hypothetical fund).



Post 1

Thursday, February 19 - 7:56pmSanction this postReply
Bookmark
Link
Edit

I think Tony Robbins is sincerely trying to help people (and thus himself) with his new book "Money, master the game".  The fact that Steve Forbes posted his interview in fact and comment makes me consider his advice.  I like what he says about mutual funds and index funds as a cheaper alternative, and balancing risk among different kinds of investments, be very risk averse.  And allocation, allocation, allocation.  (Only 30% in stocks).  It's a good interview.  I haven't bought the book yet but I plan to.  Damn, I just notice the Kindle version is $15 now, I think it was only ten a couple of weeks ago.  He mentions Vanguard sells index funds and they have a tool on their website where you can enter your financial data and get an overview and advice.  I think just knowing where you're at and where you want to get to is the place to start.  And pay yourself first.  Habitual saving and risk averse.  If you get married, marry a saver, not a spender.



Post 2

Thursday, February 19 - 9:40pmSanction this postReply
Bookmark
Link
Edit

Habitual saving and risk averse. 

Those words from Mike are of greater value than most of what you'd get from the best guru.  Especially when you are still fairly young, the best advice is to not about making money, but about keeping it - the longer the life in front of you, the more time for the unforseen to jump out and rob you.  You'll never be able to predict all of the financial twists and turns the future will bring.  Even if you get the fundamentals right, the timing can screw you.  So, be very risk adverse.  

 

As to the saving.... I advised my nephew to put no less than 10% of his gross monthly earnings into savings - every month.

 

But, I'm certainly no expert in this area.



Sanction: 6, No Sanction: 0
Sanction: 6, No Sanction: 0
Post 3

Saturday, February 21 - 8:49amSanction this postReply
Bookmark
Link
Edit

Brandon, please read "Experiencing Objectivism through Quicken" so I can share insights with you based on the principles outlined in that article.

 

If I hear nothing back from you, or if you feed back that the article repulsed you, then nothing else I say will matter.



Post 4

Sunday, February 22 - 8:44amSanction this postReply
Bookmark
Link
Edit

Cool and insightful article, I noticed that this is only appendix c, was I supposed to read anything else?

 

It will probably take me another read through or two to make it all stick but I think I have an intuitive understanding of what you're discussing after reading it through.



Sanction: 11, No Sanction: 0
Sanction: 11, No Sanction: 0
Sanction: 11, No Sanction: 0
Post 5

Sunday, February 22 - 9:33amSanction this postReply
Bookmark
Link
Edit

The book planned for which that would have been an appendix never materialized.  I learned that writing a book is quite hard!  You can read the proposed table of contents here.  I considered hiring a ghost writer but it would have cost me far more than I ever would have earned in royalties.  So I have opted to focus on my strengths -- science and engineering -- and leave the self-help book writing to more capable hands like those of our own Joseph Rowlands, author of Morality Needs No God.

 

The main thing I want you to grasp right now is how intensely human relationships can make or break your attempts to build wealth.  The universal accounting equation originated 500 years ago and still holds true today:

 

Assets = Liabilities + Equity

 

If you ever take a course in accounting, you will learn how to employ this equation in every balance sheet and cash flow statement both personally and corporately.

 

If I had to name a single role most inclined to risk your assets, it would be your role as a Lover.  As others alluded already, marry a saver, not a spender.  More importantly, avoid like the plague relationships in any role with any person who sneers at money.  They are usually the ones who want to justify their insanity by dragging you into it.

 

You need to decide whether you ever want to become a Parent.  This decision will guide how you act as a Lover.  If you want to remain childfree for life, invest in a vasectomy and get checked every six months to verify the tubes remain sealed.  If you want children, you should only court women who also want them and show the needed stability and reason required of good mothers.  See the recent poll on this topic for more.

 

That said, money needs always to remain a servant and never a master.  This means saving rationally rather than compulsively.  You need to get totally clear on your own unique means values to satisfy your particular variants of the ends values outlined in the Quicken article.  Any soul mate you select should have means values closely resonating with yours.  An example of a means value would be what kind of house you select to satisfy your mutual needs for shelter, etc.

 

Since capitalism is how wealth is created, you would benefit from the equivalent of a business minor (if that is not your major) and you can earn that non-conventionally as follows.

 

Here is a sample business certifcate program from a local community college.

 

http://www.easternflorida.edu/academics/career-technical-programs/our-programs/business-admin/

 

Only eight (8) CLEP and DSST tests needed (24 semester credit hours) though actually you would need to take managerial accounting in a normal class since there is no placement test for that subject.

 

Many colleges have these equivalent courses for their business minors.

 

If you want to prepare for those placement tests for credit, read Homeschooling for College Credit to learn how to make that happen.

 

Supplemental information:

 

http://passyourclass.com/clep_products/business/financial_accounting_clep.html

(Financial Accounting)

 

http://passyourclass.com/clep_products/business/principles_of_marketing_clep.html

(Marketing)

 

http://passyourclass.com/clep_products/social%20science/microeconomics_clep.html

(Microeconomics)

 

http://passyourclass.com/dantes_products/business/organizational_behavior.html

(Organizational Behavior)

 

http://www.free-clep-prep.com/Principles-of-Finance-DSST.html

(Principles of Finance)

 

I emphasize all this because in this so-called "New Economy" more and more people will have to find creative approaches to self-employment and this means rigorously understanding business practices.

 

See also my summary of More Wealth Without Risk and Complete Guide to Asset Protection and consider The Wise Owl Guide to Personal Finance and related placement test to educate yourself thoroughly on the entire spectrum of personal finance.  Investing alone is not enough to build wealth.  You must also protect it with insurance and other strategies or someone somewhere will take it all away from you in the blink of an eye.

 

(Edited by Luke Setzer on 2/22, 9:39am)



Sanction: 11, No Sanction: 0
Sanction: 11, No Sanction: 0
Sanction: 11, No Sanction: 0
Post 6

Tuesday, February 24 - 4:29amSanction this postReply
Bookmark
Link
Edit

To supplement my prior post, you should also start tracking how you spend your life energy, i.e. your time, and whether those expenditures deliver maximum total value.  Use the categories outlined in my Quicken article along with this example to get started.  If you spend much of your free time engaging in video games instead of studying the creation and protection of wealth, you should reconsider your priorities.  Stephen Covey's time management matrix should serve as a guide with Quadrant II as your primary focus:

 

Time Management Matrix

 

(Edited by Luke Setzer on 2/24, 4:31am)



Sanction: 6, No Sanction: 0
Sanction: 6, No Sanction: 0
Post 7

Tuesday, February 24 - 8:01amSanction this postReply
Bookmark
Link
Edit

As a general warning...  the world is on debt like a heroine addict.  The governments and general population are desperate to take your savings & investments. Stocks are in a bubble: low corporate loan interest rate = stock buyback on loan = inflated stock prices.  Government bonds are in a bubble: the banks are printing money to buy them.  Real estate is in a bubble: banks are still giving out unreasonably cheap loans.  Most college degrees are worthless (some are still good).  Gold prices are and will be manipulated lower until the fiat system is broken (hyperinflation), although still should work as very long term savings.  Money market accounts pretty much don't exist anymore since banks just print their own money electronically.  Basically, the people's trust in counter party risk is currently being fleeced.

 

So my advice is to invest in yourself and your own business.



Sanction: 6, No Sanction: 0
Sanction: 6, No Sanction: 0
Post 8

Tuesday, February 24 - 9:22amSanction this postReply
Bookmark
Link
Edit

Yes, investing in your own mind toward productive knowledge remains your single best investment instrument.



Post 9

Tuesday, March 3 - 5:34pmSanction this postReply
Bookmark
Link
Edit

Sure, I bought the party line.  It was romantic when I was 16.  Henry Cameron warned Howard Roark that Roark would end up like himself in his old age.  Do you want that?  More than anything, Roark said. You goddam fool, Cameron replied.

 

DMG:  So my advice is to invest in yourself and your own business.

LS:  Yes, investing in your own mind toward productive knowledge remains your single best investment instrument.

 

It does come with risks, of course.

 

(Edited by Michael E. Marotta on 3/04, 5:28am)



Post 10

Monday, March 9 - 11:54amSanction this postReply
Bookmark
Link
Edit

If you subscribe to the efficient market hypothesis, then you can just buy the S&P 500 index fund and forget about it and put your mental efforts where they will be more productive.  I think that over time, the S&P 500 has done about as well as anything.



Post to this thread
User ID Password reminder or create a free account.