Monthly Archives: April 2014


There are Amazing Lessons in Warren Buffett’s Shareholder Letters Part Three

When I finished Warren Buffet’s authorized biography The Snowball: Warren Buffett and the Business of Life last month I knew I wasn't done delving into all that is Buffett.  I immediately downloaded all of his shareholder letters.  If you are new to Buffett (beyond reading what other’s think he is thinking on investment sites) I would recommend reading the two books in this order as it gives you an idea as to what is going on in his life.  For example, if you read his biography first there is an entire chapter dedicated to his relationship and eventual purchase of the Nebraska Furniture Mart, so [...]

By | 2014-04-30T00:13:35+00:00 April 30th, 2014|Business|0 Comments

Why Would Anyone Own a Money Market Account?

I was reviewing a client file the other day when I saw a line item on their balance sheet that I don't often see today - a sizable money market account.  It may be a product of the unprecedented interest rate environment we are currently living it, but I am not sure why anyone has a larger than average Money Market Account (MMA) today. The basics of a Money Market Account are easy enough to understand, which is defined as, An interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited [...]

By | 2014-05-22T00:49:58+00:00 April 29th, 2014|Random|0 Comments

Do you have a Spending Cap with Your Spouse?

I was on my way to celebrate my brother's promotion within the FDNY to lieutenant when The Wife called me to tell that she bought a bed for our son, but not to worry "she saved a ton."  It took me a minute to calm down and figure out what was happening.  I originally thought that this phone call was in reference to the fact that The Wife wanted/needed/pleaded for a king size bed ($3K+).  I later learned that the phone call was in reference to a $600 mattress and box spring for our son.  While the discovery diffused my annoyance I still [...]

By | 2014-05-22T00:46:25+00:00 April 28th, 2014|Random|4 Comments

What’s the Difference Between Growth and Value Investors?

I was talking to an investment club partner a few months back about different stocks and it occurred to me half way though the conversation that we were attempting to get to the same place (i.e. a profitable investment) but taking two completely different routes.  I forget the particular investment we were talking about but I had offered it up and his argument that this particular equity was not going to suddenly and dramatically increase earnings, while I was arguing that the metrics made it look like a good buy. It wasn't until my a-ha moment in the conversation that I realized [...]

By | 2014-04-21T23:32:06+00:00 April 22nd, 2014|Investments|5 Comments

Be Fearful of Financial Planners and Investment Advisors Who Promise Consistently High Returns

I came across a great proverb in a recent CNBC article titled, "Investments and the ghost of Bernie Madoff" that seems to line up perfectly when I ask the question why an "expert" really needs my money, Farr [an investment advisor], in an email exchange, recounted the tale of a college professor who had his students record 500 tosses of a coin and calculate the actual percentage of heads and tails. He told them they didn't really have to toss the coin if they didn't want to and could randomly write down heads or tails. Then, the professor offered to review their lists [...]

By | 2014-05-22T21:44:45+00:00 April 21st, 2014|Investments|0 Comments