Posts Tagged ‘buy’

“He (Seth Goden) says, quite correctly, that most people who buy books on entrepreneurship never get beyond the dreaming stage because ‘deep down inside, they don’t think they have what it takes to succeed’.  I don’t know if that is the most common fear of starting a business.  I wish it were.  But I’m afraid too many entrepreneurs have the opposite problem.  They don’t realize they don’t have what they need to succeed….  The solution to that fear is to put your plan on hold and acquire the experience to know what you need to know.” -Mark Ford

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“…the world has been binging on debt like never before.

The International Monetary Fund reported last month that total nonfinancial-sector debt has ballooned to an all-time record of $152 trillion… while the global debt-to-GDP ratio has also soared to an all-time high of 225%, up from 200% just 14 years ago.

Worse, we’re seeing record debt at the government level, the corporate level, and the consumer level (via auto and student loans, in particular). The boom in corporate borrowing is especially concerning…

U.S. companies have already borrowed $1.4 trillion this year to date, according to data firm Dealogic. This is on pace to shatter last year’s previous all-time record of $1.5 trillion.

Unfortunately, most are using this money to refinance existing loans… buy back stock and pay dividends… and finance expensive (and often questionable) mergers and acquisitions. This will do little to help the economy. But it greatly increases leverage… and risk.” -Justin Brill

“Since 1994, Dalbar‘s Quantitative Analysis of Investor Behavior (QAIB) has been measuring the effects of investor decisions to buy, sell and switch into and out of mutual funds over both short and long-term time frames.  The results consistently show that the average investor earns less – in many cases, much less – than mutual fund performance reports would suggest.” -Dalbar.com

Cheap Money

Posted: September 29, 2016 in Money Matters
Tags: , ,

“Buy cheap.  And use other people’s money.” -Chris Mayer

The investment-advisory industry is a huge, multi-billion dollar business based on hard work, clever thinking, and sophisticated algorithms….  [T]he unfortunate truth is that the financial establishment rarely looks beyond stocks and bonds.  And if you think about it, why would it want to?  It makes its money by ushering you from one ‘hot’ stock or ‘amazing’ fund to the next….  Because they know that you have heard that ‘diversification of assets’ is good, financial advisers give you the illusion of diversification by filling your stock portfolio with businesses that are ‘diversified’….  But at the end of the day, it’s all invested in stocks or stock derivatives.

Asset allocation is the process by which you spread your wealth across different sorts of investments….  Over the years, I have made hundreds of individual financial decisions….  I could see very clearly that it was not particular buy/sell decisions that accounted for this good fortune.  It was the general decisions about asset allocation that paid off.” -Mark Ford

“There are also few things that help children appreciate the reality of scarcity like seeing that they chose to use their money to buy one thing, and now can’t buy another.” Art Carden

“Don’t ever quit.  You’ll succeed if you have delighted customers.  Don’t settle for satisfied.  Have that person thinking ‘I’ve never had a better experience with a human being’ and they’ll be back to buy your product.” -Warren Buffett