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  • Retirement Frontline: Cash Is Trash Unless You Invest It To Produce More Income  [View article]
    And Swiss Francs.

    My statement above #3 should be qualified to say "US Dollar cash". If I had opened a bank account in Switzerland years ago, over time I would have appreciated capital in US Dollar terms.
    Feb 9, 2016. 11:18 AM | Likes Like |Link to Comment
  • Retirement Frontline: Cash Is Trash Unless You Invest It To Produce More Income  [View article]
    Cash 1. pays no dividends 2. pays no interest 3. cannot appreciate, rather it depreciates slowly.

    Otherwise, cash is a good investment.
    Feb 8, 2016. 12:12 PM | 11 Likes Like |Link to Comment
  • Tesla's Gigafactory: What Did The Joker Say To The Thief?  [View article]
    The notion of a tariff against China is not a terrible idea. Are the readers here unaware that many enterprises in China have factories located in prisons? This is labor that we cannot compete with. There were websites where you could match the product with the slave labor prison factory in a particular province.
    RE: Tesla. It always seems funny to me how much is written about them when their sales are so small.
    Pop quiz: what is the difference between driving your currency value down and imposing a tariff against foreign products? None. China has *already* imposed a form of tariff against American goods and we should return the favor.
    After seeing the design of the new Tesla I realized it; Musk has gone full DeLorean even down the the door wings.
    Feb 5, 2016. 10:20 AM | 1 Like Like |Link to Comment
  • Bill Gross: Increasingly Addled  [View article]
    Reading the article makes me wonder: how is this the guy who made so much managing so much money?
    Mr. Donovan my English teacher would have failed me if I had written such stuff.
    The whole thing could be a paragraph that as usual third world countries are a mess and Japan is too old with slow growth. Yeah we knew that.
    Insulting Trump calling him addled is absurd. Trump like other successful executives has identified the main problems in the U.S.A.
    Why didn't Gross insult Jeb and Kasich for both earning millions for non-jobs at Lehman Brothers? Jeb thinks cheap labor grows an economy; he should visit Bangladesh.
    Gross doesn't say what he would do as an investor: "be careful" is not an investment strategy unless you already have a lot of capital.
    Feb 4, 2016. 09:51 AM | 7 Likes Like |Link to Comment
  • Undervalued Vineyards: Buy Concha y Toro Before The Market Does The Math  [View article]
    I would not touch an investment in a winery with a ten foot pole.
    The richest guy I know owns one in Napa. He said the way to make money with a winery is when you sell it to the next guy. Since he started in the 70's, his Napa land has risen in value by a lot.
    Funny thing, in California the guys growing table grapes in the valley make good money. Ever notice you can buy a bottle of (cheap) wine for the price of a bunch of table grapes?
    Jan 30, 2016. 11:58 AM | 4 Likes Like |Link to Comment
  • I Lost 7.82%, S&P 500 Lost 8.8% - How Much Did You Lose?  [View article]
    You must redeem your shares to lose money (a dumb move)
    I suppose someone out there needed money urgently so he sold something at a loss, poor guy.
    Jan 18, 2016. 06:48 PM | Likes Like |Link to Comment
  • Buy Stocks Here, The Sell-Off Is Way Overdone - Bezek's Daily Briefing  [View article]
    Those who fear Trump being elected should become used to the idea since so many polls have him getting the nomination. He won't back down from the Clinton Cartel either.

    Trumps anti-Wall Street comments must be taken in context; Citibank, Bank of America, AIG, Merrill should have gone bankrupt for gambling and losing, but the American taxpayer bailed out the *shareholders* and CEOs of these inept businesses on a huge scale. The depositors in the Citibank and Bank of America were never in danger.

    Trump's proposal to lower the corporate taxes for Apple and others who won't repatriate their profits to pay 30%+ would be a positive development.

    Consumers have a built in shock absorber for spending too much; they'll slow using credit cards as soon as they detect their interest payments are too high. Many people just accept credit card interest payments as they do their cable or cell phone bill, so they don't seem to mind having some credit card debt.

    Since wealth is created by production and innovation I hope that the exclusion of cheap foreign illegal labor is successful. Labor per se doesn't create any wealth at all. If you doubt this, check out the standard of living in Bangladesh.

    If it feels to hot to be in the stock market kitchen, stay out of it. I would buy more but I am always buying anyway. I have been reinvesting dividends and capital gains for decades while any new money I have usually goes into more shares.
    Jan 11, 2016. 08:48 AM | 2 Likes Like |Link to Comment
  • Apple 2016 Outlook: The Sun Can't Shine Every Day  [View article]
    I like Apple shares staying low because every three months the dividend buys me more shares. I'm compounding the dividends and bought Apple to supplement my mutual fund retirement investments.
    I'm not pessimistic about Apple long term. I have been a fanboy since 1984 when Mac blew DOS/IBM PC away.
    I will confess I prefer using Android on tablets and phones to iOS. But, Apple makes a very fine phone and tablet.
    I have friends in Mexico who as soon as they get an iPhone call me on Facetime audio or video. I can take the call in my place with wifi, walk out and the iPhone switches to LTE data and the Facetime call doesn't drop. I am impressed by iPhone capabilities.
    I know a couple of guys who work for Apple and they're capable, which gives me confidence in the management. I know a less capable person who worked for IBM overseas who now works for Amazon in Japan (anecdotal tidbit for what it's worth.)
    My post has anecdotes and is just my opinion, but it's grist for the mill.
    Jan 3, 2016. 10:12 AM | 1 Like Like |Link to Comment
  • Apple Tax Charges 'Total Political Crap'  [View article]
    I will be the radical here suggesting Apple should pay no taxes. OK, maybe 8% like in Switzerland.
    Uncle Sam is an irresponsible spendthrift who can't be trusted with money anyway.
    They should be satisfied collecting sales taxes and leave Apple alone to make money for its shareholders.
    People forget the American Revolution was largely fought over taxation by King George.
    Nobody likes taxes and everyone understands they're largely unfair. Those who support higher taxes are either 1. recipients of govt. gifts 2. work for the govt. 3. made money so easily they have guilt over it.
    Smart people are going to avoid taxation any way they can.
    Dec 24, 2015. 09:42 AM | 7 Likes Like |Link to Comment
  • The Most Overhyped Story Of 2015 - And 2016: Driverless Cars  [View article]
    I predict that a self driving option may someday exist for those times when you are stuck in traffic somewhere. You must be able to switch it on or off or the thing is never gonna sell.
    Dec 23, 2015. 11:18 AM | Likes Like |Link to Comment
  • Bye, Bye Brazil?  [View article]
    If you have ever lived in a developing country (I have), you would avoid investment there.
    Dec 22, 2015. 07:38 PM | 1 Like Like |Link to Comment
  • Apple: Tim Cook For President  [View article]
    Apple has peaked. I've been a fanboy since Mac came out in 1984.
    Android is more fun on tablets and phones than iOS. It's convenient to have iPhones for voip and imessage but I can get the same with various android apps.
    The news that Apple has 800 guys working on the phone camera is a sign that they cannot keep inventing the wheel and now are into meaningless things.
    Beats music was an example of a business that Jobs would not have associated with.
    Promoting gay "rights" is not something a CEO should do and Cook should keep his mouth shut about it.
    I'm not selling my AAPL because I know resistance is futile. I'm just gonna compound the dividends.
    But Cook and his koolaid drinking ilk are going into slow decline.
    It's the nature of business; once Zenith made the best TV sets.
    Oh we don't call them "TV sets" today either.
    Dec 21, 2015. 10:46 AM | 11 Likes Like |Link to Comment
  • Jack Bogle Was Right - You Could Be Leaving 80% On The Table  [View article]
    @sfosct, your experience was different from my father's.

    His Roth IRA transfer took 3 separate attempts with three apps over a year and two months.

    The annoying thing for me was that when the transfer is rejected by Morgan Stanley, nobody informs you either from Vanguard nor Morgan Stanley.

    After getting a Medallion Signature Guarantee for the last attempt, Morgan Stanley *still required a verbal confirmation* from my father.

    I neglected to mention that he also had difficulty accessing his own money market sweep account; it took 5 letters over 7 weeks before the compliance officer called because the guy got into some trouble. Both I and my father were amazed at the balls of the broker. Every response to a letter of instruction was "Let's meet, we should talk."

    How would you react if your bank delayed access to your own money for 7 weeks?
    FINRA is now on the case, the broker had paid $164,000 in settlements/fines already.

    These are the guys Morgan Stanley hires. Would you hire a guy who paid $164K in fines?
    Dec 20, 2015. 10:38 AM | 1 Like Like |Link to Comment
  • Jack Bogle Was Right - You Could Be Leaving 80% On The Table  [View article]
    She doesn't know she just sends the paperwork and her money goes over to Vanguard, T.Rowe Price, Fidelity. She's afraid that the UBS "adviser" (a woman) will find out and be angry etc.

    These salesmen types will try to seek a face to face meeting to talk about "what's wrong? Aren't I doing a good job?" etc.

    In the case of my father's Roth IRA transfer, Morgan Stanley had all the paperwork but still wanted telephone confirmation. I asked "how can anyone use a medallion guarantee and commit any fraud?"

    These brokers at UBS, Merrill, Morgan Stanley and their ilk are like the roach motel; you can go in but you can never leave.
    Dec 17, 2015. 09:35 AM | 1 Like Like |Link to Comment
  • Jack Bogle Was Right - You Could Be Leaving 80% On The Table  [View article]
    I like this article.
    Advisers may object, but they're not worth the money. You would do fine just walking into a Fidelity office and speaking with a registered representative. Or, you can use the planning services at places like T.Rowe Price or Vanguard for a few hundred bucks if you are unsure.

    Anyone who goes to a brokerage is going to pay too much.
    My father was directed to a broker at Morgan Stanley in Boca Raton, FL. They call themselves "financial advisers" because broker is a dirty word to my father's generation.

    His mutual funds at Morgan Stanley had a total cost of 2.33% including the "adviser fee" that he didn't even realize he was paying. I told him "You are paying $30,000+ in fees and expenses to own mutual funds. Do you like that?" He almost turned purple.

    Morgan Stanley also bought/sold lots of stocks in his open brokerage account, so he paid a totally wasteful short term capital gains tax of $2,900 in 2014. That's like taking money and burning it in the street.

    The Morgan Stanley guy also sold him stocks in emerging markets which of course became capital losses. Why a guy over 90 needs stocks in Colombia, Russia, Brazil, China is a mystery to anyone who has a brain.

    When I offered to help, boy did the broker at Morgan Stanley put up a fight. Don't think it's smooth and easy to transfer OUT of Morgan Stanley or Merrill or UBS. You need to get a medallion signature guarantee on the app, they additionally wanted phone confirmation from him to transfer his Roth IRA.

    Now he owns some funds at Vanguard. How about Vanguard Total Stock Market Index fund: expense ratio=0.05% Vanguard Wellington: 0.18%, Vanguard High Yield Tax Exempt=0.12%.

    Adviser types can't admit that they are skimming the cream off the life savings of people who do actual work to have investment capital. This would shatter their self-esteem and life view. So, they rationalize their behavior by showing the investor "See, I grew your net worth."

    I have a friend who has a UBS account and she is working 3 jobs to support herself and her son. She is actually afraid to confront her adviser to transfer her stuff away from UBS. I feel sorry for her. She's throwing money in the trash that the adviser doesn't deserve.
    Dec 16, 2015. 10:40 AM | 4 Likes Like |Link to Comment