Attitude – Arrogance or Humility?
Confidence = Good
Arrogance = Bad
Humility = Good
Get it? 80% of making money is attitude and 20% is head knowledge. Make sure you and your adviser have the right attitude.
Doing Something for the Sake of Doing Something
This week I’m thinking about the human tendency to do something just to be doing something.
I’ve found that we Americans love to solve problems, and if we’re not selling this investment to buy that one, or reallocating something else if feels like we’re standing still.
Are you falling into ‘busy work” or is changing nothing the right answer?
Learning to Take Small Losses Quickly
One important lesson in managing a portfolio is:
Take your losses quickly and move on!
We’re all going to make mistakes. The right thing to do is admit it was a mistake, sell the loss, and move on to your next investment.
It’s that simple. It’s what separates the pros from the amateurs.
CLICK FOR FULL ARTICLE – LEARNING TO TAKE SMALL LOSSES QUICKLY
What’s Worse: Losing Money or Not Making Enough?
Is the pain of losing money greater than the joy of making money?
The problem is that most people NEED to take some risk to realize their retirement goals because the rate of return needed is greater than the risk free return.
With inflation, there’s opportunity cost as well.
One of the things I do for clients is work with them to balance these competing desires of growth and principal protection. Call me if you’d like to discuss this in your situation.
Click on the link for a discussion of which is worse–Losing Money or Not Making Enough.
Alternative Funding
This week’s diatribe is about off-balance sheet accounting and alternative financing.
I’ve been approached multiple times in the past month or two about investment opportunities funding some activity outside of the normal funding channels (banks or equity financing).
This leads me to wonder how much lending is happening in our economy this way and if it’s under the radar. I don’t like the sound of it.
Listen to my video below.