Happy Hour: Optimism Is Better

Welcome to the end of the week! Just sit back, relax, and enjoy this weeks roundup in another edition of Happy Hour.

Optimism Is Better

Marc Andreeson was interviewed by NY Mag this week. Several topics were discussed including optimism versus pessimism:

And I can tell you, at least from the last 20 years, if you bet on the side of the optimists, generally you’re right.

I agree, as long as we avoid the two extremes. Somewhere between the two sits reality. For now, lets focus on pessimism. Continue Reading…

10 Lessons Learned From Shelby Davis

The Davis DynastyWho the hell is Shelby Davis? That was my first thought after I heard the name from a reader’s comment on recommended investing books. So I added it to my growing wishlist to check out later. Later finally happened and here’s the answer. He’s probably the best investor you never heard of.

The story of Shelby Davis is reminiscent of today. Interest rates were at all time lows. Bonds were loved and stocks were loathed. Davis did the one thing most investors wouldn’t do. He bought the most hated, boring stocks he could find and stuck with it his entire life.

Davis was an unknown. He didn’t build a company or manage a fund. He avoided the media. He only managed his money wisely. He was THE millionaire next door until the Forbes 400 list of richest Americans outed him in ’88.

Davis lived by the principles we so often forget or ignore. The Davis Dynasty shows us what’s possible even if we get started late. Continue Reading…

Happy Hour: Missing Efficient Markets

Welcome to the end of the week! Just sit back, relax, and enjoy this weeks roundup in another edition of Happy Hour.

Missing Efficient Markets?

On Monday, Twitter became a rolling stream of market psychologists trying to talk whoever was listening off the ledge. It’s been rolling all week.

I miss the efficient markets. When fear, and other feelings, were theoretically impossible.

Less than a decade ago, none of this was possible. Sure, Twitter didn’t exist, but neither did emotion in the markets. Continue Reading…

A Saver’s Guide To Retirement Accounts

Guide to Retirement AccountsWhether you’re putting money in or taking money out of a 401k or IRA, understanding how retirement accounts work, the different rules around each, and how these tools fit into your retirement plan has become a big part of meeting your retirement goals.

Retirement accounts are the single greatest savings tools around because of the tax benefits. Delaying taxes on dividends, capital gains, and income lets your savings grow faster without taking a tax hit each year. That tax savings compounds in a huge way when combined with a long-term horizon. And the tax deduction, if you qualify, has the added bonus of lowering your tax bill. All you need is a basic understanding of how retirement accounts work to turn the tax code into more savings for you. Continue Reading…

Happy Hour: P2P Disruption For Who?

Welcome to the end of the week! Just sit back, relax, and enjoy this weeks roundup in another edition of Happy Hour.

P2P Disruption?

Bloomberg did a piece on the future of the finance industry that’s worth reading. In it, they interviewed Marc Andreessen on the potential for disruption in the finance industry. I won’t argue against the possibilities. We already see it with low-cost index funds,robo-advisors, and peer-to-peer lending. The finance industry is ripe for change and these are very early days.

Though, I’m not convinced P2P lending is the disruption it was meant to be. Who really wins? Continue Reading…