Learning From Lottery Winners That Go Bankrupt

One of the most important academic insights into human nature can be found in this 2009 research paper published in the Vanderbilt Law and Economics Journal titled “The Ticket To Easy Street: The Financial Consequences of Winning The Lottery.” This research essay tracked down the winners of the Florida Lotto and Fantasy Five (another Florida lottery) and cross-referenced those winners with bankruptcy filings over the subsequent twenty years. It found that lottery winners were over 5x as likely as the typical individual to file for bankruptcy over twenty-year period. 

An author of the study, Mark Hoekstra, added this commentary about his research findings: “The fact that winning a large sum of … Read the rest of this article!

What Shrewd Investors Know About Disney’s Buyback

One of the advantages that comes with the turf of buying and holding a particular stock for a long period of time is that you hopefully become familiar with it in a way that someone taking a cursory look at the stock may not notice.

For instance, it is well known in the investor community that Disney typically spends four times as much money repurchasing stock as it does paying out dividends. This fact, coupled with the Disney Board’s decision to pay out the dividend annually, can partially explain why income investors looking for retirement income avoid the stock altogether. There aren’t a whole lot of people in the world who can look … Read the rest of this article!