Warren Buffett famously said, “Rule #1, don’t lose money. Rule #2: don’t forget rule #1.” When I think of this, I’m reminded of Your Survival Guy’s efficient frontier. Worry more about how you invest than what you invest in. Keeping within your proper comfort zone is up to you. Action Line: If you need help finding your comfort zone, let’s talk. P.S. Happy Efficient Frontier Friday! “What do you do if the market crashes?” a new client asked me last week. “Good question,” I said. “I get that one a lot.” And it’s one of the reasons I’ve been writing to you, valued reader, on my … [Read more...]
How Investing in AI Speaks Volumes about You
How you invest in AI speaks volumes about you, specifically your risk tolerance. Because it’s been Your Survival Guy’s experience that investors realize their risk tolerance is intolerance, like a food allergy, after the fact. When they lose money. When you consider AI’s pull-on energy, doesn’t it make sense to have some utilities? Why not include ones that have a history of paying dividends and increasing them? The WSJ reports: In the U.S., with the most data centers, their share of electricity consumption could rise from 4% in 2022 to 6% in 2026, the International Energy Agency … [Read more...]
Microsoft Earnings Jump on AI
The WSJ Reports: The Redmond, Wash., company has been ramping up its spending on data centers and other infrastructure to host the rising AI demand. That spending has sent some of Microsoft’s capital expenditures soaring. Microsoft said its capital expenditures were $14 billion last quarter, a marked increase from the $11.5 billion the company spent the preceding quarter. On a conference call after earnings were announced, Chief Financial Officer Amy Hood said that the company will continue to increase spending. She said the customer demand for AI services is beyond what Microsoft is … [Read more...]
Your Survival Guy Breaks Down Boxes, Do You?
Your Survival Guy’s family does its best to live a green life. We recycle. But apparently, when it comes to breaking down cardboard boxes, that’s a one-man job—mine. I don’t remember signing up for this job. The boxes just pile up in the foyer. Then, when I trip over one and ask if “I” can take them out to the garage, I’m answered as if it is “my” job: “No leave that I need to return it.” Then there’s the humiliation of the blue recycling bin. Yes, I know how to recycle. But that doesn’t stop the city from slapping a “how to recycle” sticker on my blue bin. It’s embarrassing. And it’s … [Read more...]
Oracle’s Vision for the Future—Larry Ellison Keynote
I like this presentation at Oracle CloudWorld 2023 by Oracle founder Larry Ellison, especially his comments at the end about partnering with Microsoft. … [Read more...]
Investing Is Math
Originally posted on October 30th, 2023. Sorry to burst your bubble, but investing is math. Sure, prices are fun to watch, but they aren’t the math of collecting income from your stocks, bonds, or that nephew who owes you. That’s math. You can see the money, rent, dividends, income, and even crumpled dollars coming into your possession. That’s investing. Look at today’s yields on bonds. Finally, you can sink your teeth into them. You can plunk $100,000 in a one-year bond yielding five percent and be pretty sure, especially in Treasurys, you’re getting $5000 plus your original outlay at … [Read more...]
Breaking: New Rules on Trillions in IRAs and 401(k)s
Good news. New rules will govern trillions in IRAs where your interests are put first. Americans will get new protections for money moved out of their 401(k)s and into IRAs, under Labor Department regulations released yesterday. What does this mean to you? 401(k)s are governed by strict rules requiring any financial advice to be in the interest of individual savers under a 1974 law called Erisa. Erisa rules have not historically applied once that 401(k) is rolled over into an IRA. Now a fiduciary rule will apply to IRAs. The change goes into effect September 23, with a year for firms … [Read more...]
When You’re in Control, You Have Opportunities
Control is behind a lot of the problems in the world. But you have more control than you think. You, unlike a government statistic, don’t need to buy the basket of goods the Feds use to measure inflation. You are a value hunter. You seek out good deals and live to talk about them because what’s more fun than talking about a good deal? When the government comes out with inflation stats, you and I know we’re at nosebleed levels already. It’s not like prices are going to fall. Now that we’re at this point, steady increases are just piling onto already too-high prices. But as an inflation … [Read more...]
Newport, Rhode Island: Sailing, Mansions, and High Taxes
When you think of Newport, Rhode Island you think sailing, a vibrant waterfront, and mansions along Bellevue Ave. But let’s not forget high taxes. Because with all the money pouring into the city every summer, apparently, the city is broke. Right after the city did a property revaluation, residents were told they wouldn’t see taxes go up. Now, they’re being told taxes are going up, but not for everyone. Christian Winthrop of The Newport Buzz reports: A significant aspect of the proposed budget is the residential property tax rate, which would grant a 24 percent exemption for qualifying … [Read more...]
Yes, Money Can Buy You Happiness
Yes, money can buy you happiness. When you spend within your means and still have enough to take that dream trip, that can truly make you happy. You’re spending some of your money doing just that. I know this because it’s what we talk about. Right now, for example, some of you are returning from a European vacation or Central America, while others are enjoying time in the sun from Apalachicola to Delray Beach and the Keys. You gotta live. And live you can if you’re careful with your money. As my mother always says, “prior planning” can make dreams come true. The same can be true with … [Read more...]
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