Falling Victim The pharaohs of ancient Egypt created the first pyramid schemes. But since then these schemes have evolved to become more elaborate. The most recent example has taken shape in the form of a Gifting Circle, which specifically targets affluent women. According to the Better Business Bureau, a consumer watchdog, the scam works by inviting women to join wine… Read More »
Proper Portfolio Diversification Once upon a time a topiary artist invested all his money in shears and hedge funds. But he lost all of it because he wasn’t properly diversified. We diversify our assets so if one investment fails miserably it won’t drag down the rest of our portfolio with it. Owning 10 stocks is better than 1. But there comes a… Read More »
The Problem with Vertical Structures I once applied for a job at McDonald’s. But I soon got myself into a pickle when I couldn’t cut the mustard answering some tough interview questions. I’ve always admired how quickly fast food workers can be promoted to manager if they work hard enough. When most people think about their careers they imagine themselves moving up… Read More »
The Enemy of Success is Delusion Author and public speaker Steve Siebold has helped many people with their careers. His clients include Fortune 500 companies and his books are considered by many to be the gold standard in the field of psychological performance training. One important distinction that Steve notices between the middle class and the wealthy is in how they… Read More »
Time and Annual Returns I recently watched an interesting YouTube video about time and the rate of return, by finance columnist Preet Banerjee. He explains the relationship between an investor’s time horizon and his or her rate of return. Here’s a question to illustrate an example. If our goal is to accumulate $100,000 by age 65, how much do… Read More »
The Pessimism in the Markets Corporate profits have been disappointing lately. Apple (AAPL) recently said its revenue fell for the first time in 13 years due to a decline in iPhone sales compared to the same time last year. Apple shares are worth 26% less now than a year ago. Investors are warned the decline could continue. 🙁 Other publicly traded companies are… Read More »