Understanding How Capital Works

I’m going to start ramping up and expanding the frequency of posts for the Patreon subscription service (which you can access by clicking here) by moving to a mid-week and weekend posting schedule. For a while, I have been flummoxed on the best way to increase the amount of content I produce because I only make so many investment decisions per year.

To that end, I am going to add more financial investing philosophy articles, analyses of tempting decisions that should be avoided, and assessments of stock performances for companies that I already own.

In this spirit, I just published an article titled “Understanding How Capital Works” that criticizes the mantra that an investor cannot go broke taking a profit. For a specific example, I point out that investors in Ross Stores could have easily sold in 1989 after the stock tripled in the prior year … Read the rest of this article!

“I Like My Job And I’m Good At It, So Why Should I Care About Investing?”

This is a rare topic that I haven’t gotten to address yet explicitly, and I’m glad I now get the chance—I recently heard from a reader who mentioned that she enjoys her job, is quite good at it, is certain of her job security, and does not see the point in investing.

It’s a perfectly fair question, and I’m glad she asked me it.

Here’s how I think about it.

Part of my explanation has to deal with seeking prosperity, and the other part of my explanation has to deal with ensuring survival.

First, let’s talk about prosperity. Because the writer said she worked in retail, I’ll use that as an example. Let’s say that you are the manager of a very small boutique clothing store, and you make $60,000 per year. For all of your hard work, you will get about $5,000 per month (and then you’ll have … Read the rest of this article!