“The mind ought sometimes to be diverted that it may return to better thinking.” -Phaedrus
Posts Tagged ‘return’
Mind Diverted
Posted: August 15, 2019 in Thought for the DayTags: better, diverted, mind, ought, return, thinking
Pay Cash?
Posted: March 21, 2017 in Private Reserve StrategyTags: bank, buy, car, Cash, control, earning, Financing, investing, opportunity, pay, question, return, spending, trade
“Even if you buy a car with cash, you are forfeiting the opportunity of investing that cash and earning a return on it. So even people who always ‘pay cash’ still experience the same implicit trade-offs between spending now versus later…the real question is whether you are going to obtain your financing from a bank controlled by outsiders, versus a bank that you control.” -Robert Murphy
Financial Trust
Posted: February 28, 2016 in Money MattersTags: account, balance, bank, bankruptcy, bond, confidence, creditor, dividend, finance, interest, Money, paper, pay, payments, promises, return, sale, stock, trust, value
“So much of finance comes down to confidence and trust. And that’s because finance is about promises. Promises to pay or deliver something in the future in return for something now. Think about it. A stock is a piece of paper that’s nothing but a claim on a company’s future dividends and its value in a sale or a bankruptcy. A bond is a claim to money from a creditor in the future… and maybe some interest payments. Your bank account balance isn’t real cash. It’s just a bank’s promise to give you that amount of cash the next time you ask for it.” -Tom Dyson
Money Pool
Posted: September 22, 2015 in Private Reserve StrategyTags: benefit, build, finance, funds, interest, private, purchases, reserve, return, strategy
One key feature of the private reserve strategy is that one builds a pool of funds from which to finance many purchases in life. The benefit is the interest paid returns to one’s own pool instead an alternate finance company.
Family Wealth
Posted: September 16, 2015 in Private Reserve StrategyTags: borrow, borrowed, cars, children, enrich, family, fund, individual, interest, Money, purpose, return, yachts
“The purpose of the fund [family fund] is to help individual family members enrich their lives…. Children can borrow from the fund. But if they do, they must return the borrowed money with interest. They can use the money to start businesses or pursue educations, but they can’t use it to buy sports cars or yachts.” -Mark Ford
Excess Debt?
Posted: December 17, 2014 in DebtTags: asset, borrow, Debt, Money, payment, return, yield
“Never borrow money unless you know—with a high degree of certainty—the asset you buy with borrowed money will yield a return far in excess of your debt service payments.” -Mark Ford
Knowledge Instrument
Posted: November 13, 2013 in Thought for the DayTags: instrument, knowledge, production, return
“Knowledge is the only instrument of production that is not subject to diminishing returns.” -J.M. Clark
Wall Street Investing
Posted: August 17, 2013 in EconomicsTags: capital, financial, investor, mutual fund, profit, return, stock, trading, Wall Street, Wealth
Perhaps others are unaware, as was I, that after the initial public offering (IPO) of a company, that company receives no capital benefits from the trading that occurs on Wall Street. Wall Street is basically a “financial product” used to help generate profit for these entities, in which they provide a “return” to the investor (or stock purchaser). Mutual Funds are one such financial product.
“Actual wealth, or capital, is transferred to a corporation at the time of the initial public offering of the stock, or IPO. This, however, is a one-time event. For all the daily trading these exchanges perform, they provide no capital whatsoever for American industry.” -L. Carlos Lara LMR May 2013
“It’s easy to piddle away money. It’s hard to get a good return on it.” –Bill Bonner