When it comes to measuring business value, the stock market is not a ratio scale.
What does this mean and why should any investor care?
Well, the stock market is a scale we use to measure business value.
But what type of scale is it and what exactly does it measure? Read more
The real American medal count at the 2008 Olympics.
As of August 16, 2008 the United States has won 57 medals at this year’s Olympic games (17 gold, 18 silver, and 22 bronze)
An impressive total indeed. Read more
The 3 pillars of value investing.
I’ve been reading some Graham and Buffett lately and thought I’d write a post about what both call the fundamentals of value investing.
1. You are buying a business not a stock. Read more
You shouldn’t have to pay a penalty to use your own money.
I read an article in The Wall Street Journal over the weekend that described the “rules” for accessing your money in an IRA.[1]
“The Internal Revenue Service does let you withdraw money from your individual retirement account, as long as you replace it within 60 days. But if you miss the deadline, you have to pay income tax on the amount you took out. (For folks under the age 59 ½, there is also a 10% penalty.)” Read more
Is anyone else having trouble buying 3-packs of these 3 flavors of Orbit gum?
Ever try the Mint Mojito, Citrusmint, and Raspberrymint flavors of Orbit gum made by Wrigley’s? [1]
You should: these 3 flavors are absolutely fantastic. Read more
Is it rational not to save?
If you’ve read any of my previous posts you know I believe in consuming less than you produce, saving the rest, and thereby building wealth through the accumulation of capital (unconsumed production).
I read an interesting blog post today which argues that, in an inflationary environment where paper money is not backed by gold, it is rational for folks not to save because by doing so they lose money: inflation is greater than the Fed’s artifically low interest rate and so savers lose. Read more