Why do you do what you do?

What’s your purpose?   (from $prezzaturian)

Why do you do what you do? Why do you drink what you drink, eat what you eat, eat where you eat, dress the way you dress?

Why do you check your social media dozens of times a day?

When I was young, including when I went to college, there was no internet, no mobile phones, no social media. There was nothing to check to get that dopamine kick. Instead I read books, thought, did sports, or played.

I’m not saying life was better, since it wasn’t. Internet connected smartphones have their uses; a lot of them. However, mindlessly wasting time on updating likes, reading memes for a second’s amusement or smirk aren’t among them.

I’m sure you wouldn’t bother to turn on a turned off phone to see “what’s going on” in your Twitter flow. But when the phone is already on, the kick is just a second away, hence you do it again and again.

Short meaningless kicks with no motion forward. But what should you do instead, what do you really want?

What are you waiting for? Why are you just passing time? Or is Twitter, Angry Birds and dinner all you care for?

Why do you live? Why did you go to school? Why do you work so hard? Why are you building that life “platform”, of house, car, boat, work, status…, so intently?

What is it that really drives you? What makes you happy? (see my previous article from December 2015 on everyday happiness) What do you enjoy doing without posting it on social media?

  • Just make money like Buffett
  • Quality time with your closest friends
  • Work hard, play hard; essentially buy expensive toys and travels
  • Experience as much as possible, through, e.g., various travels and trips
  • What would you actually change if you had a billion, i.e., after buying a house, securing transportation and getting a better computer or phone, how would you change what you do in a given day? Do you really need (much) more money than you already have to to that?

Start with your why

(an inspiring book and TED talk about identifying and pursuing your true drivers). The book deals with how to be successful by knowing your ultimate purpose, but I’ve interpreted the question a little more freely.

Once you’ve fulfilled your basic needs in terms of internet connection, food and shelter, what is your WHY for getting up in the morning, for going through the motions?

Which people do you want to spend time with? Doing what? How do you plan to feel good, to feel relevant? How do you want to express yourself? Who do you want to be?

On that topic, by the way, Buffett had this to say in the clip in TrendFollowing: “Think of a few character traits you admire in others, and a few you loathe. Act to become the person you admire the most

Summary: Just ask why

Ask WHY before checking your phone (app that counts how much you check)

Ask WHY before accepting that invitation

Ask WHY you’d do A, and thus miss out on B (alternative cost)

Ask WHY you want more money, status, fame, in exchange for your limited time

Ask WHY you are a member there, why you go to the gym, why you keep postponing what you really want to do, WHY you keep investing but never reaping?

Ask WHY you post things online. Wouldn’t you enjoy your food, your vacation, your expensive car, your tour on a yacht if you couldn’t get any likes?

Then what is it really worth to you?

MUST LISTEN: http://trendfollowingradio.com/ep-526-i-will-survive-with-michael-covel-on-trend-following-radio

free e-book and sign up for the newsletter. ($prezzaturian Newsletter)

Lesson-on-Elementary-Worldly-Wisdom-Charlie-Munger

 

A Deep-Value Canadian Grahamite Teaches His Process

Tim McElvaine explains his simple but effective process.

2016-05_conference_transcript_McElvaine Fund An excellent tutorial on Graham-like investing. Note his simple four-pronged approach.   Read more below:

Take a Microcap Investing Course for Free

http://www.oddballstocks.com/2017/02/podcast-interview-plus-new-investing.html

I think Nate is an intelligent, self-taught investor who can teach us all a few things if we do the work.   Listen to the podcast.Hi, this is Nate Tobik.

More microcap podcasts here: https://planetmicrocap.podbean.com/

Another microcap investor:http://classicvalueinvestors.com/

An excellent interview on mineral economics and gold

Back to the future with gold BTTF_GoldMoney_Insights  Gold doesn’t create wealth but it can store it effectively for decades or centuries.

Time to Index? Got Gold?

A portfolio manager who will manage the Dogs of the Dow Portfolio.

Most institutional and individual investors will find the best way to own common stock is through an index fund that charges minimal fees. Those following this path are sure to beat the net results after fees and expenses delivered by the great majority of investment professionals. –Warren Buffett.

A minuscule 4% of funds produce market-beating after-tax results with a scant 0.6% annual margin of gain. The 96% of funds that fail to meet or beat the Vanguard 500 index Fund lose by a wealth-destroying margin of 4% per annum.  “Unless an investor has access to incredibly highly qualified professionals, they should be 100 percent indexed. That includes almost all investors and most institutional investors. –David Swensen, chief investment officer, Yale University.

“In modern markets, most institutions and almost all individuals will experience better results with index funds.” –Benjamin Graham.

Those who have knowledge, don’t predict. Thos who predict, don’t have knowledge. — Lao Tzu, 6th Century B.C.

I am reading, The Index Revolution: Why Investors Should Join It Now by Charles D. Ellis

The author presents a compelling case why most individuals should index:

  1. Indexing outperforms active investing
  2. Low Fees are an important reason to index
  3. Indexing makes it much easier to focus on your most important investment decisions
  4. Your taxes are lower when you index
  5. Indexing saves operational costs.
  6. Indexing makes most investment risks easier to live with
  7. Indexing avoids “Manager Risk”
  8. Indexing helps you avoid costly troubles with Mr. Market
  9. You have much better things to do with your time.
  10. Experts agree most investors should index

Articles proliferate such as: https://www.fool.com/investing/general/2016/04/05/the-numbers-are-in-actively-managed-mutual-funds-a.aspx and research for the past few decades has shown that Index Funds Outperform.

Now lets journey into the real world: https://www.mackenzieinvestments.com/en/prices-performance.  I picked this fund family at random. Look at each of their funds’ long-term performance compared to their comparable benchmarks.   Not ONE outperforms. Not one.   Who in their right mind would invest?    As money managers become desperate to beat the index, they tend to mimic their benchmarks, so their amount of underperformance closes towards the index, but GUARANTEES underperformance due to fees and slippage of commissions and taxes.

Time to pack it in and index?   First, do not underestimate how difficult it is to “outsmart” the market.   I personally believe that the ONLY way–obviously–to do better is to be very different from the indexes.   You will either vastly UNDER-perform or OUTperform.  You have to be different and right.  So how to be right?  You must do things differently like use all available information in the financials (read footnotes and balance sheet), have a longer-term perspective such as five to seven years–at a minimum–three years to give reversion to the mean a chance to work or time for franchises to compound.   You have to pick your spots where you are confident that you are buying from mistaken, uneconomic sellers.   And when you do find a great opportunity (assuming that you can distinguish one) you heavily weight your position.  NOT EASY.

SETH KLARMAN

Here is what Seth Klarman recently said about current conditions (New York Times, Feb. 7th, 2017:

Most hedge funds have found themselves on the losing side of trades over the past several years, a point Mr. Klarman addressed in his letter (2016). Noting that hedge fund returns have underperformed the indexes — he mentioned that hedge funds had returned only 23 percent from 2010 to 2015, compared with 108 percent for the Standard & Poor’s index — he blamed the influx of money into the industry.

“With any asset class, when substantial new money flows in, the returns go down,” Mr. Klarman wrote. “No surprise, then, that as money poured into hedge funds, overall returns have soured.”

He continued, “To many, hedge funds have come to seem like a failed product.”

The lousy performance among hedge funds and the potential for them to go out of business or consolidate, he suggests, may become an opportunity.

Perhaps the most distinctive point he makes — at least that finance geeks will appreciate — is what he says is the irony that investors now “have gotten excited about market-hugging index funds and exchange traded funds (E.T.F.s) that mimic various market or sector indices.”

He says he sees big trouble ahead in this area — or at least the potential for investors in individual stocks to profit.

“One of the perverse effects of increased indexing and E.T.F. activity is that it will tend to ‘lock in’ today’s relative valuations between securities,” Mr. Klarman wrote.

“When money flows into an index fund or index-related E.T.F., the manager generally buys into the securities in an index in proportion to their current market capitalization (often to the capitalization of only their public float, which interestingly adds a layer of distortion, disfavoring companies with large insider, strategic, or state ownership),” he wrote. “Thus today’s high-multiple companies are likely to also be tomorrow’s, regardless of merit, with less capital in the hands of active managers to potentially correct any mispricings.”

To Mr. Klarman, “stocks outside the indices may be cast adrift, no longer attached to the valuation grid but increasingly off of it.”

“This should give long-term value investors a distinct advantage,” he wrote. “The inherent irony of the efficient market theory is that the more people believe in it and correspondingly shun active management, the more inefficient the market is likely to become.”

End.

What do YOU think?

How NOT to be a Deep Value Investor, Part II; Best Trade Ever?

Remember two years ago?      http://csinvesting.org/2015/01/12/how-not-to-be-a-deep-value-investor/

The inevitable loss when you pay massive premiums over net asset values.  Or you can short the closed end fund for profits.

Two years later, down 12% on CUBA, a closed-end fund investing in Cuba.  The closed-end fund traded at a 70% premium to net assets–so the market is efficient all the time?


Ivanhoe and a small investor’s success

An Investor Greatest Investment Ever_Ivanhoe

An Investor Greatest Investment Ever_Ivanhoe

With full disclosure I also bought in late 2015 and 2016 at an average price of 65 cents and still holding. Why? Three tier one assets in the Congo and South Africa with a world famous promoter.  However, I kept my position 1/2 size unlike the other speculator.   These cyclical resource stocks require years of patience.

 

100 Baggers Seminar Today at 3 PM

http://www.mayermethod.com/video-3_erk862.html  or http://www.mayermethod.com   This Saturday, 3 PM Eastern Standard Time (New York City times)

A sign-in for email here: https://subscribe.bonnerandpartners.com/XBF1T135

I don’t know if this is a marketing gimmick, but Chris Mayer is the author of a recently updated 100 to 1 book. http://www.valuewalk.com/2016/02/a-review-of-100-baggers-stocks-that-return-100-to-1-and-how-to-find-them/

 


I listened for ten minutes to find out this was JUST a sales/ bait and switch scam to buy an overpriced newsletter.   Hurry now before the letter doubles to $5,000.  Give me a break!   How stupid do they think people are.  YOU can do better on your own.

I apologize for posting.   Not everything is worth your time.

The Attributes of Great Investors

The Attributes of Great Investors

Before you click on article, sit down and write what YOU think.  Be specific.   What steps do you need to take to improve?  So how to go from here to there?

The Attributes of Great Investors_MM

 

 

 

Mini Course on Analyzing Gold/Silver Stocks (GSA)

Gold Stock Analyst
 CSInvesting: Yes, this is an ad/enticement to get you to subscribe to his newsletter, but John Doody is a top   analyst in the gold space.  You can use his same techniques yourself–if you are willing to do the work.

GSA Mini-Course No. 1

The three critical metrics for determining upside potential in gold mining stocks.

How do you sort through 1,000+ publicly traded gold mining companies to determine which ones are viable investments? After all, they all produce the same thing: gold.

In the informative four-minute video below, GSA-Top10 Editor-in-Chief John Doody describes three critical metrics he pioneered over 20 years ago that cut through the confusion and chaos of the gold mining market to reveal high-upside opportunities. Watch it, and you’ll understand how John’s pioneering evaluation approach has helped the GSA-Top10 investment method consistently outperform the S&P 500, the XAU index and gold itself ever since.

Mini Course 1

or https://secure1.goldstockanalyst.com/order.lasso?promoAdLoad=1&mailCode=MINI-COURSE-1&course=1

Are you a serious investor? Get the facts about the most successful gold investing strategy of the past 15 years!

Click here to view a 13-minute video that explains the powerful GSA-Top10 strategy in greater detail.

You’ll learn:

  • How GSA analysts sort through more than a thousand publicly traded gold stocks to find the handful with significant upside over the next 2 to 3 years!
  • How the GSATop10 newsletter makes investing and maintaining your winning gold stock portfolio virtually effortless!

Click here to download a free report on one of the GSA-Top10 companies — a $99 value!

You’ll see:

  • The deep research and thoughtful analysis that makes GSA the most respected and successful gold stock authority in the world!
  • The engaging format that makes complex information – and recommendations – easy to grasp!

Note: The GSA-Top10 newsletter is intended for serious investors who can commit a minimum of $10,000 to a focused gold stock portfolio for at least three years.

PET ROCKS

Imagine owning a pet that doesn’t need to be trained, walked, fed or groomed — ever. That’s exactly what California ad executive Gary Dahl was after when he came up with pet rocks in 1975. Tired of the hassle and responsibility that came with animate house pets, Dahl developed a toy concept that was 1% product and 99% marketing genius: a garden-variety rock, packaged in a comfy cardboard shipping crate, complete with straw for the rock’s comfort and holes so it could breathe during transport. The Pet Rock Training Manual — a tongue-in-cheek set of guidelines for pet owners, like housebreaking instructions (“Place it on some old newspapers. The rock will never know what the paper is for and will require no further instruction”) — helped turn the scheme from an amusing gag gift into an inexplicable toy craze. By Christmas 1975, Americans were hooked. Although the fad was long gone by the following year, the rocks — which were collected from a beach in Baja, Calif., for pennies each and retailed for $3.95 — made Dahl a multimillionaire in about six months. https://en.wikipedia.org/wiki/Pet_Rock and The-Care-and-Training-of-Your-Pet-Rock-Manual-by-Gary-Dahl

BEFORE I became a value investor, I was addicted to bubbles.  I have over 1,200 Pet Rocks lining my Python cage.  I don’t know what the price chart says, but it doesn’t look good that I will be able to resell at a profit.

Also, I have 20,000 Beanie Babies rotting/mildewing in my basement as well.

but there is hope…..http://dailytoa.st/blogs/if-you-have-any-of-these-11-beanie-babies-you-can-retire-now

An amazing story of mass delusion and the dark side of cute.

How to be a Stoic: http://www.perell.com/podcast/massimo

Lessons from Ed Thorp, a self-taught investor: http://www.gurufocus.com/news/473560/the-strip-and-the-street-a-conversation-with-mathematician-hedge-fund-manager-and-blackjack-player-edward-thorp

Edward Thorp: I came at the securities markets without basically any prior knowledge and I educated myself by sitting down and reading anything I could lay my hands on. I began to get oriented, and then I discovered how to evaluate warrants, at least in an elementary way, and I decided that was a way that I could apply mathematics and logical thinking and maybe get an edge in the market.

A Great Learning Site

Fantastic sources of information here:  http://facpub.stjohns.edu/~moyr/videoonyoutube.htm

A good microcap investor to study: http://otcadventures.com/

If you enjoy learning about management (founders beat bureacrats every time) and business–especially one of the greatest franchises of all time–then this movie is for you: