I'm an individual investor heavily influenced by Warren Buffett and Charlie Munger. Munger's 1994 USC Business School Speech is something I think about a lot: ### Over the long term, it's hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it for that 40 years, you're not going to make much different than a 6% return—even if you originally buy it at a huge discount. Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you'll end up with a fine result. ... Another very simple effect I very seldom see discussed either by investment managers or anybody else is the effect of taxes. If you're going to buy something which compounds for 30 years at 15% per annum and you pay one 35% tax at the very end, the way that works out is that after taxes, you keep 13.3% per annum. In contrast, if you bought the same investment, but had to pay taxes every year of 35% out of the 15% that you earned, then your return would be 15% minus 35% of 15%—or only 9.75% per year compounded. So the difference there is over 3.5%. And what 3.5% does to the numbers over long holding periods like 30 years is truly eye-opening. If you sit back for long, long stretches in great companies, you can get a huge edge from nothing but the way that income taxes work. ### Feel free to follow me on Google Plus: https://plus.google.com/115463998897129479026/posts
Worked for big software and financial companies for 20+ years. Investing for past 15+ years his own portfolio. Eclectic approach biased toward value investing, dividends, trend investing, CEFs, option selling and hedging at market extremes.
Current MBA student with capital markets experience working toward CFA. 5 years of investing experience following event driven and deep value opportunities. Always on the lookout for high upside and limited downside, under-followed equities.
Most everyday interactions have emotional, economic and moral impact; I see the world concurrently through these lenses.
I did personal and corporate audits for IRS for 20 years, took hiatus to attend to family and community but maintained my CPA & began investing. I recently opened a small fee-based financial planning business and favor value investing with socially responsible screening.
Retired at 56 in 1993. Worked for 34 years, planning on stretching my retirement out to 34 years as well. Old picture - lost 100 lbs since that was taken. Part-time investor now. 80% of our liquid assets in Roth accounts, and half of those in preferred stocks. Still get excited about some investments - latest two - Brookfield Asset Management, (and 3 of their LPs), and Newtek. Getting interested in options - slowly. Only educating myself now - when I'm comfortable I'll start paper trading. Another update - Anne and I just celebrated 61st anniversary of the day we met - I was the patient, she the nurse. Raised 8 daughters - lots of interesting times. More of the same now with 19, thus far, in the next generation.
James Harris is the owner of a salmon charter fishing company. He has completed the Canadian Securities course and will be pursuing his (CIM) Canadian Investment Manager designation in the near future. His investing style is based on dividend growth techniques for long term growth and a growing dividend income stream leading into retirement.