Tag: knowledge

The 1%ers


Wealth is generally misunderstood.  Many people want it.  Fewer people know how to get it.  Fewer still put in the time, skill and effort to build their own.  Almost no one knows what to do with it once they get it. The wealthiest people… Continue Reading “The 1%ers”

Solar Energy Is A Disruptive Technology


Compound or more properly exponential growth is a little non-intuitive.  Well. maybe a lot non-intuitive.  It applies to far more things than money and interest. Google’s in-house smart guy, Ray Kurzweil, points out an interesting example of something in the rest of the world. … Continue Reading “Solar Energy Is A Disruptive Technology”

Can You Know Too Much?


The answer is an unqualified maybe.  It depends on what you “Know.” Consider the Warren Buffett thought from the 1996 letter to shareholders. “To invest successfully, you need not understand beta, efficient markets, modern portfolio theory, option pricing or emerging markets. You may, in… Continue Reading “Can You Know Too Much?”

The Value of Advice Is??


People who provide complex services like financial planning frequently misjudge their value.  It is not easy to discover, but it is impossible if you do not think about it. There is a common failing.  Advisors value services based upon their cost to provide them. … Continue Reading “The Value of Advice Is??”

How You Use Your Capital


Capital comes in many forms and they must connect with each other to be useful.  Think of them like servers on a network.  Think next about the network itself.  Think last about what travels through the network to make the connection.  Electrons or photons… Continue Reading “How You Use Your Capital”

Capital Has Many Forms


Accumulating capital is a high priority goal for anyone who wants to be successful in life.  The problem comes when you misunderstand the idea of capital.  Young people can be confused when they see capital to be only money.  Money is not the only… Continue Reading “Capital Has Many Forms”

Notice What Your Bank Offers


On September 17, this article appeared in Financial Post.  “Do Not Blithely Sign a Mortgage Renewal Form”  The essence of the article’s fact situation is: The form arrived close to the renewal deadline thus limiting shopping time. The offered rate was 2.20% higher than… Continue Reading “Notice What Your Bank Offers”

Fear Causes Risk


If you are fearful, you will tend to respond to situations poorly.  It is like the Laffer Tax Curve.  Beyond an optimal point, the more your raise the tax rate, the less tax you get.  With fear, the more upset you are, the lower… Continue Reading “Fear Causes Risk”

Price Is A Poor Proxy For Value


Investment fund management fees are neither too high nor too low when you analyze them in isolation.  They are just a number. Fees are the price of doing business in a particular way.  That price could be very high or very low depending on… Continue Reading “Price Is A Poor Proxy For Value”

Using Expertise


I heard an interesting description last week.  Subject-Matter Expert.  The point was that while it is possible to be an expert within a subject, that expertise says nothing about expertise in other subjects. We are all dumb when talking about things with which we… Continue Reading “Using Expertise”

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