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Take Back Your Financial Future
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
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.
A Breath Of Fresh Air
Get a look at possible future paths.
Jim Rogers makes points he has made for years, and for which he is frequently ridiculed. I'm glad he keeps talking
Jim Rogers started the Quantum Fund with George Soros. He retired early and wealthy. Jimmy then circled the world by motorcycle - analyzing and investing as he wrote a best selling book about global investing. When Jim Rogers speaks, listening is always a wise investment of your time. You need to watch this video and think about what he says; it is your future he is talking about.
Carefully considering one Jim Rogers quiet rant is worth more to you than months of financial news.
Big Names: Rogers "Prepared For The Worst"; Rogers On His Mettle; Cultivating Growth
curated content from YouTube
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.
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.
The Intelligent Investor: The Classic Text on Value Investing
Deep value investing by the master. It is not fast money, but it is very sure money. If a high school or college student wants to know the secret of stock market wealth - they should work their way through this tome.
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Extraordinary Popular Delusions and the Madness of Crowds and Confusión de Confusiones (A Marketplace Book)
Early works that may help you avoid dancing off cliffs with investment lemmings. Get some perspective - these are extremely relevant today.
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Amazon Price: $25.60 (as of 12/30/2009)
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A Bull in China: Investing Profitably in the World's Greatest Market
The future may be passing Western civilization by - here is a chance to understand your options as presented by a very wise investor.
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Amazon Price: $17.79 (as of 12/30/2009)
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The Ultimate Gift
DVD; get the gift - share the gift
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Amazon Price: $9.99 (as of 12/30/2009)
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Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse
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Amazon Price: $18.45 (as of 12/30/2009)
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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.
Fetching RSS feed... please stand bystart 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
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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Money Game
A studied look at wall street. Chapter 8 alone is so valuable I won't put a price on it.
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The Zurich Axioms
The best investment or intelligent speculation guide you can find. I've shared dozens of copies of this book with confused investors.
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Amazon Price: $15.59 (as of 12/30/2009)
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The Adventures of Jonathan Gullible: A Free Market Odyssey
Get at least two copies, one for you to read and re-read - the other to give to inquisitive kiddos.
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Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street
entertaining - and it contains real investment insights, including a useful outline of "Kelly's Method."
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Amazon Price: $10.20 (as of 12/30/2009)
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Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics
Based on the valuable insights of C.F. Bastiat, this is economic reality in easy to swallow bite sized pieces. A truly simple way to become economically literate.
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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 have an online book proposal for a novel I'm writing called Complicit Simplicity; try a similar proposal format for your book.
Send me a copy when your book is done.
- Doug Casey Research
- Not free, but with a risk free trial. 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.
A Short History of Financial Euphoria (Penguin business)
An entertaining read, very useful insights for today's markets.
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Reminiscences of a Stock Operator Illustrated (A Marketplace Book)
Every successful trader I've asked values this book. You will too.
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The Black Swan: The Impact of the Highly Improbable
It is huge events, largely unforeseen, that define progress and disaster.
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Amazon Price: $17.63 (as of 12/30/2009)
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Mobs, Messiahs, and Markets: Surviving the Public Spectacle in Finance and Politics (Agora Series)
A disjointed series of rants - but very good for challenging your complacency in your financial knowledge.
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The New Market Wizards: Conversations with America's Top Traders (A Marketplace Book)
Powerfully illuminating Interviews with top traders. You may want to buy all three financial wizards books now - they are so good you won't stop at just one. Click on the picture and order them.
Let these traders become your investment mentors.
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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.
Tell us your story
or make suggestions to improve this lens
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Reply
- Nov 18, 2009 @ 5:30 pm
- Excellent lens on the daily stock market, the size of the world stock market was estimated at about $36.6 trillion US at the beginning of October 2008, with the global recession coming to an end, things are beginning to look bright, especially in less developed nations where their own markets witnessed big shocks.
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- BFuniv.com BFuniv.com Nov 18, 2009 @ 5:52 pm
- At this point I think there is great danger - the markets have moved up quickly, but the longterm outlook is still dour. There may be a bit of upside left in the immediate future, but there is huge risk of a major drop, at any time. I don't think we will see the end of the tunnel for years, any light in the tunnel before then may be a train roaring toward us. Be very cautious.
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- drossart drossart Sep 30, 2009 @ 11:36 pm
- Wonderfully written, articulate, concise, and engaging.
Thank you,
artswami
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- BFuniv.com BFuniv.com Aug 18, 2009 @ 3:57 pm | in reply to Spook
- Kevin, You are so right. Wealth is created through specialization in an area where you have deep knowledge. Wealth is preserved by diversification; by country, asset class, and time to maturity, etc.
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- Spook Spook Aug 18, 2009 @ 2:23 pm
- I think it's about sticking to what you know. I made good money speculating in cattle back home. However my Grandpa lost his fortune in the twenties stock exchange crash and this has put our family off that line forever and a day. It's hard to begin again when you have lost everything, are out of work and getting old.
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- RenaissanceM RenaissanceM Aug 13, 2009 @ 10:25 am
- Quite an extensive lens. Thanks for the info
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- Fusion_Economics Fusion_Economics May 12, 2009 @ 2:03 pm
- Great lens! You've put together a lot of interesting and helpful information here. I have a lens on understanding the 21st Century Economy and would love it if you'd stop by and say hello.
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- buylikebuffett buylikebuffett Dec 6, 2008 @ 1:57 pm
- Interesting opinion on speculation and investment
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- The_Big_Gamble The_Big_Gamble Oct 26, 2008 @ 11:09 am
- This is a very well done lens. You present a lot of very interesting and helpful information on investing and speculating here. We'd love for you to visit us at The Big Gamble when you have a chance.
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- ChristiannaGarrett-Martin ChristiannaGarrett-Martin Oct 11, 2008 @ 11:47 am
- Very well written article. Interesting! :)
Christianna.
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- The_Homeopath The_Homeopath Oct 11, 2008 @ 11:46 am
- I do believe that starting small is the way to go. You see it everywhere - people looking for quick and big profits - and I think that is what has led to so many of our problems today (even on the internet with so many people believing in get rich quick schemes).
I had a wonderful economics teacher in high school. I still remember one of his best lectures. The whole gist of it was that we needed to take a close look at what our parents and grandparents had. Then look at how long it took them to get there. Then think about what we expected to have when we graduated from high school. The point was, that things like houses and jobs and cars (and finances) come slowly and with work. Nothing is instant and no one should feel "entitled" to what anyone else has unless they are willing to put in the time and effort that they did. Slow and steady wins the race.
We were just discussing this with our kids the other night. They were amused to hear about what their parents first apartment was
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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
by BFuniv.com
Allan Wallace has decades of market experience.
Allan is Rector of Bastiat Free University, and Junior Partner Ministries; he is also the author of Sp...
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