A wise woman once said that when in doubt, zoom out. So zoom out I did. This is what a 40-year chart of Dow Jones Industrial Average looks like… Add in reinvested dividends and we are looking at an easy double of that. Or if we want to get exotic, here is what the IndianContinue reading “Perspectives”
Category Archives: General Investing
Mind That Concentration Risk
Rule number one – don’t lose money. Rule number two – don’t forget rule number one. That of course is classic Buffett. So, say you have a choice between investing in the hottest tech stock around or in a basket of stocks that represent say the entire tech sector. Which one do you think offers aContinue reading “Mind That Concentration Risk”
A Pension Plan Of One
How long are you going to live? Average life expectancy today for a typical American is about 80 years. And it is somewhat distributed like this… It is skewed left because some unlucky few will lie on the extreme left of the distribution, a major chunk will live close to the average and some toContinue reading “A Pension Plan Of One”
Annuities – Directionally Right But Mostly Wrong
Annuities are insurance products. And insurance is an expense. It is never an investment. What do you get for that expense? Risk reduction (definition of insurance) but above all, peace of mind. You buy life insurance to protect your loved ones from financial ruin in case you unexpectedly pass away. There is an insurable needContinue reading “Annuities – Directionally Right But Mostly Wrong”