Aint She Purty? Made Her myself. This is the official Miles-Dividend-MD-How-to-Save Flow chart. Start at the top and see where the flow chart takes you. What could be more fun? In terms of posts that correspond to each step of the flow sheet…. Step 1: Save a healthy proportion of your take home income. Please […]
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Raw Goods
The obvious next topic to turn to in discussing early retirement and investment theory is how to design a well balanced portfolio that will deliver us to financial independence at a ripe young (to middle) age. We’ve now covered the main building blocks for success: The crucial importance of low-cost passively managed funds, the only […]
Do I Bore You With My Investment Talk?
I realize that just because investing is deeply interesting to me, doesn’t mean that it’s interesting to everyone else. Some people read investment theory books for breakfast lunch and dinner (i.e. me). But others’ eyes roll back at the mere mention of “compound interest.” Allocation? Don’t talk to me about allocation. I would argue , […]
Bondage
We’ve now talked about all four factors that have been shown to correlate with higher returns in the stock market. The market (beta), value, size, and momentum factors; we’ve covered them all. It may have been a little bit econ 101, but it was probably necessary in order to frame the next part of our […]
On Bluebirds and Wolves
The first principle is that I must think about something new every day, and write something new every day and post something new everyday. The complicating factor is that I’m at a hotel in Medford Oregon tonight getting ready for a talk tomorrow. So this post will be less structured Than normal. Mea culpa. I […]
Small Packages
In the post the Value Of Value, we discussed the value premium. This classification is based on the observation that cheaply priced companies (low stock price relative to the earnings or asset value) outperform other stocks over the long-term. The size premium refers to the observation that over the long term small size companies outperform […]
The Bookie’s Cut
When choosing an investment strategy, there’s probably nothing more important than focusing on the fees. We talked about diversification, and how it is the only “free lunch” in investing. We discussed rebalancing and how it allows you to repeatedly buy low and sell high. These aspects of asset allocation and investment behavior are incredibly important. But they’re probably […]
On Buying Low and Selling High
Let’s say you are starting a business. An unexpected opportunity is granted to you on day one, and you are given the ability, prior to investing a cent, to choose one of two business strategies. You may either: A: Buy high, sell low Or B: Buy low, sell high. Which would you choose? The answer […]
Free Lunch
In the post entitled risky business, we discussed the concept of “Beta.” This term defines the risk, or volatility of the market Itself. And with any individual investment, it’s generally true that there is no such thing as a free lunch. Put another way “No risk: no reward.” An equally important, and less obvious point […]
Risky Business
If you want to retire at a younger age than average, or if you want to live off your money by allowing your money to make money, then there are really two things that you must do as soon as possible. The first (and most important) is to kick up your savings percentage. And the […]
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