The Investor’s Worst Enemy

publicenemy

If I had to make a short list of the investor’s biggest enemies, one of the top slots would be dedicated to the fact that we receive stock market quotations during every second of the business day from Monday through Friday. It completely turns otherwise intelligent investors into short-term traders.

Imagine if buying a stock was something you had to earn. You know, pretend you had to hike by wagon hundreds of miles to New York every year in a sort of reverse Oregon Trail style to purchase your stocks. And for good measure, let’s pretend the stock market was only open one per year. Think about what that would do to your stock selection and screening process.

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If You Are Rich, You Need Umbrella Insurance

umbrella

One of the most underrated ways that an individual can protect himself is by purchasing umbrella insurance. It is possibly the biggest no-brainer kind of insurance you can buy, simply because it allows you to avoid wipeout risk in exchange for a very modest sum.

For those of you unfamiliar, umbrella insurance is an insurance policy in excess of home insurance, auto insurance, boat insurance, etc., and it guards against freak accidents that would drive you into bankruptcy.

For instance, let’s say you’re on your honeymoon in Switzerland, and you crash your rental car into the CEO of Nestle, putting him on permanent disability. That would cost you millions of dollars. Most likely, that’s game over. You’re gonna lose your house, you’re gonna lose your assets, and you will be paying out a percentage of your assets to the Nestle man for the rest of your life. It’s not a pretty picture.

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