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  • Warren Buffett And Time-Horizon Arbitrage  [View article]
    Yes, Buffett has advantages, but so does the small investor:
    1)The average investor can make moves very quickly
    2) The average investor's buys/sells do not have the potential to dislocate the market like Buffett's
    3) The average investor does not have to disclose buys and sells.
    Unfortunately the average investor should not be concerned about 1,2 & 3 above, because they should not be trading often enough for it to matter. I stick with good quality mutual funds and dollar cost average. Once a year I re-balance my portfolio.
    Nov 30, 2013. 11:39 AM | 1 Like Like |Link to Comment
  • The current environment is not ideal for earnings growth, says Wells Fargo (WFC -1.7%) CEO John Stumpf on the earnings call, touting his bank's diversity of revenue streams. Well, mortgage banking accounted for 26% of noninterest income (presentation) in Q1, and if you listen to Jamie Dimon, there's little business left for the banks to squeeze out of the HARP program. For Wells, mortgage profit of $2.8B in Q1 was off 9% sequentially, off 3% Y/Y.  [View news story]
    I am attempting a refi at Wells Fargo. I use the word "attempting" because of the hoops they are putting me through. Despite a 850 credit rating and lots of equity, they are taking 3 months to get this done. I am sure they are going to low ball the appraisal as well. From my experience, Wells Fargo is not really interested in making new mortgage loans. It's hard to blame them, would you make a 30 fixed rate loan at 3.75%?
    Apr 13, 2013. 10:51 AM | Likes Like |Link to Comment
  • A team appointed by Michigan Governor Rick Snyder has until tomorrow to make recommendations for solving Detroit's dire financial problems. If Detroit and the team can agree on proposals, Snyder has 10 days to act, but if no deal is reached, the state could cut off revenue-sharing funds or hire an external emergency manager to run the city.   [View news story]
    ...and the kid as no debt either!
    Mar 25, 2012. 10:57 AM | 4 Likes Like |Link to Comment
  • How To Allow Your Children To Retire Young  [View article]
    Thank you for the article. While I have no desire to help my kids retire early, I do intend to leave them some money, unless I outlive my retirement portfolio. The important lesson I have learned over 40 years of investing is to save, save, save. My wife and I saved 10-15% of our income for over 40 years. Dollar cost averaging and compounding do the rest. If your company has a 401k, use it, especially if there is a match. The key is discipline. What you invest in really doesn't matter that much. An S&P 500 Index fund works quite nicely. As I learned more about investing (Luis Rukeyser was wonderful), diversification (5% rule) was also helpful in lowering risk. I stick mostly to mutual funds and seldom buy individual stocks. You don't need to get tricky. Today our portfolio is well into 7 figures. I am retired, but I still work for the "fun of it."
    Mar 4, 2012. 10:38 AM | 2 Likes Like |Link to Comment
  • Why I Am Avoiding American Capital Agency  [View article]
    I only hold this stock for its dividend. Any capital appreciation is unlikely since the company usually dilutes its value with new stock offerings.
    Jan 3, 2012. 11:15 AM | 4 Likes Like |Link to Comment
  • Why Wells Fargo Is a Great Buy  [View article]
    I retired from WFC as a middle level manger after 33 years with them. This company is a winner and I have made a significant amount of money from employee stock options and my own investments in WFC. I recently bought more WFC at 8. This was a no brainer. Does anyone have some ideas on buying WFC calls?
    Nov 27, 2009. 12:53 PM | Likes Like |Link to Comment