SMART INVESTING MEANS OBSERVING TRENDS

Old Personal Pager

Change is constant and inevitable.  Winter changes into spring, night changes into day, and even the largest boulders are eventually reduced to sand.  Death, taxes, and change.  Those are your guarantees, my friend. In the world of business and investing, when a simple change evolves from a temporary detour into a sustainable new direction that’s backed by fundamentals, a new trend emerges.  And when a new trend alters a familiar course or practice, the change can be very disruptive.  Entire industries can be impacted, cultural ideals are often reformed, and massive transfers of wealth can occur.  “Paradigm shift” was a Continue reading

INVESTING IN LAS VEGAS? NOPE.

LasVegasNevada

On a recent flight back to California, I struck up a conversation with a fellow traveler.  Turns out we actually went to the same middle school even though we were a few years apart in age.  Small world, huh?  Eventually we started chatting about why we were on a flight.  He told me that he was heading out to a friend’s wedding, and I explained that I had just spent a few days in the Midwest visiting some of my rental properties.   That captured his interest, and he asked if I was planning to invest in Las Vegas since it’s Continue reading

THE PROBLEMS WITH YOUR JOB

Frustrated Employee

I can feel you rolling your eyes right now. As if you really need me pointing out everything that’s wrong with your job, huh?  I’m sure you’re more than capable of figuring out this one on your own. Well, there are a lot of problems with the whole job concept in general: workplace politics, discrimination, sitting in traffic, high taxes, favoritism, lack of control, big egos… I could keep going. Well, I’m of the opinion that the biggest travesty associated with jobs is that they commit the cardinal sin of directly linking time with earnings.  With a job, you’re trading hours Continue reading

LIKE SHOPPING? THEN YOU’LL LOVE INVESTING

Crowds storm a shopping mall on Black Friday

The day after Thanksgiving – known as “Black Friday” – is the busiest shopping day of the year.  News channels will often broadcast clips of people camping outside their favorite store days in advance.  And once the stores open, the crowds are absolutely maddening.  Fights occasionally break out between shoppers.  There was even a news headline a few years ago about an employee accidently being trampled to death as they tried to open the doors so customers could get inside.  Unbelievable. So what drives this kind of irrational consumer behavior?  Is it drugs?  Well, if you’ve been reduced to camping Continue reading

THE THREE APPROACHES TO INVESTING

Investing for Capital Appreciation

As you begin exploring the investment landscape, you’ll quickly realize that there are plenty of investment choices to select from.  There’s no shortage of available options.  Nevertheless, when you break down all the various financial strategies and techniques, there are really only three primary approaches to investing that we can pursue as self-directed stewards of our money: 1)   Investing for Tax Reduction 2)   Investing for Capital Appreciation 3)   Investing for Income Let’s take a look at these three approaches individually: INVESTING FOR TAX REDUCTION With this approach, you’re investing to reduce your tax exposure.  Taxes are right up there with Continue reading