From L.B.: “I would like to get rich quick. I have a little spare money to gamble. I heard that margin trading can make a mountain of dough out of my little molehill of cash. Any experience in this?”
Yes. My experience is that you will lose your money.
The leverage you get […]
“At the ripe old age of 36, netting mid 40’s in income, household assets listing about 10 grand, liquid about 25 grand, only started my IRA last year, I feel like I’m going to be working a long time. I would like some advice on putting my money to work for me. I am on […]
“I don’t know if you follow Compaq but it seems the little guys again were in the dark over the recent ‘shocking’ quarterly earnings report. Seems only reporters and analysts are unaware of the real behind the scenes news. As usual, Compaq (insert any stock here), seemingly knocking the cover off the ball, started to […]
“You write, in discussing the Beardstown Ladies, that it’s almost impossible to beat the market consistently. But what about Buffett? Surely it isn’t all just commission savings. He does seem to make good investments at the right prices.” -D.G.G.
Indeed he does. Warren Buffett is smarter than almost anybody . . . completely single-minded […]
You have heard of the Truth In Lending law. The idea is to provide interest-rate information honestly and consistently so that people know the interest rate they’re paying and can sensibly compare loans.
Now comes reader Erik Sten with a refinement.
With regard to those “2.9% financing or $1,500 cash back” deals one […]
“When I bought my last car, I offered to pay cash a la your friend Joe. Apart from any financial incentives to the dealer, the dealership’s general manager strongly recommended I finance at least part of it. In light of your column I realize it may have been for his own financial gain, but […]
From Scott Mains: “About a year ago my wife and I purchased a new car using a similar tactic to Joe. [As described recently in Joe Beats the Bank, Joe financed his car because it’s an option on which the dealer makes money. He then paid off the loan in full the next month. […]
Few things are as infuriating — or dangerous — as a short squeeze.
There is this preposterous stock, I won’t mention any names, at 90, up from 70 up from 30 up from 8, and it’s just such an obvious short. It has no sales, no earnings, the boss has disappeared or turned out to […]
“How do short-sellers’ brokers find stock to borrow? Is there an electronic system offering stock to lend? Is there a market, so that thinly traded stock or other stock that’s being squeezed gets more rent than just the dividend income?” –David Williams
When you sell stock short, you are selling shares you don’t own, hoping […]
“Years ago, I read one of your books that explained the Rule Of 72. This was one of the most important pieces of knowledge I ever acquired. It put me on the road to understand money and I am proud to say that I am retired at 55 and love it. I would like to […]
Quote of the Day
If you think it's messy there, said Albert Einstein of his paper-strewn office, you should see it up here, he smiled, pointing to his head.~.
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