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Creating Wealth - how to build and preserve capital

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Take Back Your Financial Future

"There is only one investment objective: maximum total return after taxes."
John Templeton

I would add: adjusted for inflation caused by the printing of money.

1) Most investors follow similar investment advice.

2) Most advisers live well from their advise and money management services. 

3) Most investors will be greatly disappointed even before they reach retirement.

There is a better way to plan for your future - create and manage your own wealth. Take back your financial future - take back your life.


"No one cares more about your money than you; unless they plan to use or steal your money." - Allan Wallace

Important!

Bill Bonner, 5/May/2009

People who had no idea there was anything wrong with the world financial system two years ago, now say the problem has been fixed.

Who fixed it? The people who had no idea what was wrong with it, of course.

What did they fix it with? The same thing that caused the problem they didn't see - debt.

Who makes sure it won't break again? The people who didn't notice the wheels coming off the last time.

Nobody cares more about your money than you.

"Education is when you read the fine print. Experience is what you get if you don't." - Pete Seeger


Slick was surprised .

He and Jack had worked used car lots on the bad side of town since High School, about twenty years now.

But there was Jack, standing in front of a new car lot - in a three piece suit - on the good side of town.

Slick hadn't even been on this street in years. "Ok Jack, how did you get a job here?"

"It's not a job, I own the place; and howdy to you too."

Slick was really interested now, "ok, Howdy. - Now explain this one."

Jack looked around a bit and said rather quietly "Well a kid had an aunt that left him a lot of money, and all he knew about business he learned pushing a broom. He came to me and said it seemed I had a lot of experience and little money, he had a lot of money but no experience. - he wanted us to work together."

Jack then looked Slick in the eye and proclaimed. - "Now he has the experience he wanted."

Slick responded. "And you have the money."

"Yep."

"No one cares more about your money than you, unless they intend to use or steal your money. In fact no one cares more about your life than you ..."
Allan R. Wallace

Learn to manage your money yourself.

Plan Your Investments - speculate according to your plan

Find your own way through the investment forest.


The best route to financial freedom is not to be found in a simple and polished presentation by a financial services sales person. In fact, investing during a recession like the one we are in requires even more personal control.

A sales person's pitch offers a path to predictable accumulation, followed by controlled distribution, and then the joy of changing society with your planned giving legacy.

Life is not linear!


Investment is diluted speculation; when investing you are paying someone to speculate for you -- while you wait anxiously. Instead, you can learn speculation rules that allow you to create, grow, and protect your own wealth.

The Speculation Rules definition of true wealth - when you can frequently give to great causes and not have to check your bank balance first. You will know when you achieve real wealth.

You can start on the road to true wealth by decreasing your take home money today. At first you are just building an emergency fund. You won't miss it after a month or two. So arrange your income that 10% goes to savings and intelligent speculation, and a reasonable percentage to charity.


To discover true financial freedom learn to grow and protect your financial assets for yourself. An important speculation rule: there is a market trading style that fits you best - discover it!

There are two keys to gaining wealth:

* Wealth is created by concentration, preserved by diversification.
Be focused on one asset class until the crowd joins you -- then diversify out of it.

* Wealth is overwhelmingly created by profit and capital gains - not by salaries.
The future belongs to prepared (your responsibility) and adaptable (your opportunity) minds.

Buy The Book Before You Buy The Investment

A good finance book will help you create, grow, and preserve your wealth.

"The man who doesn't read good books has no advantage over the man who can't read them." - Mark Twain

Knowledge that empowers you to act, and then directs your actions has great value.

There is a full meal of courage and wisdom in each well selected book on investments. Be sure and take your daily dose to ensure your financial health.

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Speculation Rules - The Anti-Investment Blog

When it is your money - speculation rules! Learn speculation rules governing your time and money.


Speculation may be understood by observation and cogitation. Developing mathematical models to explain or forecast events obfuscates reality.

Much more concise than obtuse math is Mark Twain's comment, "History does not repeat itself, it rhymes."

The Speculation Rules Journal has been supplanted by a combination of BFuniv at twitter and financial Squidoo lenses - but the archives are still valuable.
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start small - grow slow and steady

You will be learning new ideas; you may start with a leap - or fall flat on your nose. Don't read too much into either, you will soon experience the other.


Something is always failing, most efforts never seem good enough, destruction looms menacingly; the recent bust in Real estate speculation offers a case in point.

"Growth is not steady, forward, upward progression. It is instead a switchback trail; three steps forward, two back, one around the bushes, and a few simply standing, before another forward leap." - Dorothy Corkville Briggs

However, overall both we and mankind can continue to progress. Persist once you have found an investment style that fits you.

In our attempts at progress it is easy to become fixated on the two steps we just fell back - rather than profit from the next three steps forward.

There Are A Million Ways To Make A Million Dollars In The Markets

Sadly they are all hard to find and only last a short time.


If you find one of these hidden routes to riches, keep it too yourself for as long as possible. Decrease the leverage and size of the bets quickly. Folks are watching, they will dilute your returns, and may set a trap to capture what you have already gained (I call that Niederhoffer's Bane). Then too, you may have just tossed heads on a coin four times in a row by accident - it does happen.

Keep each of your investments small relative to your portfolio. Don't make all of your speculations in one area, or in an area where they are similar to your other speculations. Consider using "Kelly's Method" of risk management as outlined in the very readable book about Las Vegas and Wall Street, Fortune's Formula.

"Wealth is made through concentration, but preserved through thoughtful diversification - don't give back what you've earned." - Allan Wallace


Swimming Up Stream

Wisdom is the principal thing; therefore get wisdom: and with all thy getting get understanding. Proverbs 4:7

The crowd is not always wrong.

In the middle of a move in the markets - the crowd is gaining courage and profits, becoming more bold.

The crowd is only always wrong at the extremes.

When everyone agrees that "this time it's different" is when they throw caution to the winds, and give back all the gains they have made - and usually far more.

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Follow these links to sites or pages of value.

There are lots of good resources about managing your own money, select the ones that are of value to you.


Our definition of speculation: following a system of reasoning while attempting to discover opportunity from within inconclusive evidence -- acting upon that reasoning - and then reacting decisively to fresh information.
List of speculation rules
This is not a complete speculation rules list. It is however the current outline of a book I work on occasionally.

Use it as a reference to make your own list, or write your own book. I used a similar outline for a Squidoo published, free, online novel I wrote called Hacker End Game - Complicit Simplicity.

Send me a copy when your book is done.

Doug Casey Research
Doug has some valuable free e-letters, but the greater value are his paid services -- this guy and his team are good. You will learn a great deal more than just profitable speculation from Doug. Consider this a regular adjunct to The Zurich Axioms. Subscribe for a year, you will probably stay much longer.

Squidoo lens with free Elliott Wave materials
Elliott Wave Theory is a power tool you want in your investment tool box; along with Benjamin Graham and Douglas Casey. Free Elliott wave videos, free e-books, and free Elliott wave tutorials. Whats not to like?

Very Cool: free link to watch the History's Hidden Engine documentary.

Sovereign Society
A free newsletter that will keep you up to date on international investing and speculation. Very valuable - did I mention it's free - Go get it, I'll wait.


BFU College Of Human Interaction
This is the social science school at Bastiat Free University. You will find easy to understand economics courses here. Apply and register for free, monitor the classes at no charge. Also check the courses in the College of Entrepreneurship.

You can also earn a self-directed, distance learning degree at a low cost.


insurance versus investment
To be direct:

All insurance is an expensive way of protecting what you can not afford to protect alone.

Small Uncorrelated Speculations Protect Your Wealth

Gambler's ruin will catch up with plungers


The first book may well be a timely warning, the second book is supposed to be a novel, but is probably an autobiographical memoir of a famous plunger.

Earned wealth turned into instant poverty when the hero backed his opinions too deeply and in too focused a manner. You can learn a lot from these books.

You won't learn how to put it all on the line for one opinion; you will learn to maximize returns while controlling volatility.

It may even keep you from self destruction. Of course if what you want is the thrill of the markets - self destruction may be an unstated part of your goal.

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Throwing arcane math at economics is illogical

"Economic man," an academic construct, does not exist.


The rational man that underlies economic models is pure foolishness.

Humans can be rational alone if they work at it. Put them in a large group, be it in a broker's office, entering the housing market, or walking through a casino; and kiss reason goodbye.

"A crowd can be no more wise than its wisest member, but tends to act at the unreasoning level of the most emotional members - becoming a mob."
Allan Wallace

Modern academics love the validity they accrue by applying math to sociology, anthropology, economics, or political science. If they convolute math enough they can claim to "support" any harebrained concept. They have to assume so much, and modify math or the discipline so much; either the math or the reality it supposedly represents becomes a joke.

An economist came to a horse handicapper and said he had found a perfect way to predict the winner in a horse race. The gambler became excited; no more reading stats, comparing jockeys, watching weather, etc. In other words winning would no longer be hard work and risk. The bookie took the economist off to one side and asked for a hint to the process. The economist said " well, first we assume horses are ellipses."

Economics is about people as individuals. Sociology and psychology are about people. We are people, and we know a lot of what we do is not rational. All of us irrational beings do not suddenly become rational when we form a large group. We become far less rational as a mob.

"If there are several opposing opinions on an issue, all of them can't be right; however, all of them can be very wrong." - Allan Wallace

Modern economics has become the art of building ugly mathematical structures and calling them elegant. The models used are full of assumptive fallacies, the final product is obscene. I know, you want to know what I really think.

I think economists were created to make weathermen look good; or as
Galbraith said "Economics exists to make astrology look respectable."

Finance, particularly your own finances, can be a very interesting subject.

We can assume most financial advisors will object and vote an angry NO! In their shoes I might do the same; to sell successfully you should believe in your products.


Learning to run your own finances is an important step in running your own life.

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Will YOUR life be based on what you want to use it to accomplish, or by random urges of what you want to do? - Allan R. Wallace

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BFuniv.com

Allan R. Wallace Trains Visionaries

"I just might be wrong; but if you view change as a problem rather than an opportunity you'll always be too late.... more »

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Let's avoid dystopia, shall we? 

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Cyberwar Explosions 

From Hacker School to a hacktivist island, hack an ascent toward human rights.

cyberhug.me: hacktivist cyberwars for human rights

cyberhug.me: hacktivist cyberwars for human rights

by: Allan R. Wallace

Amazon Price: $15.29 (as of 02/13/2012)Buy Now

A novel in three acts.
Print Edition

Your life is a burning match.
Light This Fire.
Ignite the world.

*hacktivist* ~ Cyberwar explodes over a despotism's genocide: The cyberhug.me trilogy starts with a lone hackster, Billy, in cyberbattle.

Complicit Simplicity ~ Human Rights bless all through their complicit simplicity, by placing people above unjust law. As cyberwars extend beyond the ability of lone hackers, Billy forms a hacktivism team for recovering human rights.

Abacus Brief ~ Moonlit Knight, a Hacker School grad, risks annihilation in a high tech battle. He strives to solve a dangerous cyberwar maze on a beautiful Pacific island before he too is murdered. Moon builds a hacktivist community as he battles for peace and human rights, (and love).

*Inexpensive eReader Downloads*

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A print edition of Hacker School, to foreshadow the above cyberhug.me novels. Download a free Kindle ap too.

Hacker School Trilogy (cyberhug.me)

Hacker School Trilogy (cyberhug.me)

by: Allan R. Wallace

Amazon Price: (as of 02/13/2012)Buy Now



The dystopia we've earned has finally arrived. What about the children?

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