What Ryan Braun’s Season-Ending Suspension Can Teach Us About Personal Finance

For those of you that follow baseball, you may have caught wind of the recent news that Milwaukee Brewers Ryan Braun recently received a season-ending suspension (65 games) for his link to the Biogenesis Lab that violated league policy concerning performance-enhancing substances (as of my writing this on July 23rd, 2013, the specific details regarding dosages has not been publicly disclosed). But what is noteworthy about Braun’s case is that it yet again proves the trope “it’s not the crime that causes the biggest headache, rather, it’s the cover-up).

If you have watched ESPN at all in the past 24 hours, you must have seen the February 2012 clip of Braun playing the victim card after his urine sample reportedly contained excessive amounts of testosterone, while Braun proclaimed his own innocence and facilitated the firing of the lab technician for improperly transporting Braun’s urine sample.

http://www.youtube.com/watch?v=kPKurzzwGxg

When something Read the rest of this article!

The Uber IPO’s High Risk

Jeremy Siegel’s research into initial public offerings, which found that IPOs underperform the market by four percentage points annually during the five-year stretch following the IPO, speaks to the elevated valuations and hype that occur at the time of the offering. Most notably, Warren Buffett’s 1990s talk to Florida MBA students mentioned that Coca-Cola IPO’d in 1919 at a price of $40 per share, and then fell by over 50% to $19 per share the next year. For your own research, pull up the stock performance history of companies that have had an IPO at some point over the past decade and you will typically see the price droop in the years following the IPO.

I understand why Uber has become popular in recent years. It has displaced the taxi industry and seems to be the apex of the Modern Millennial Company.

The problem is that, from 1974 through 2018, … Read the rest of this article!

My Ten Favorite Walt Disney Quotes

DisneyWalt

Walt Disney is one of my favorite titans of the 20th century because he was a dude that had to keep plugging away to find success in life.

Did he have the creative control of some of his early animations and characters before Mickey Mouse stolen away from him? Check.

Did he spend much of his early life being mocked by his peers (and even his own father) for being a doodler and painter instead of following the social expectations of what constituted “normal” for a young boy and adolescent? Check.

Did the woman of his dreams dump him on a train because she thought he turned into a complete loser, always fiddling with his drawings instead of “getting a real job”? Check.

Did he have loans and requests for funding get rejected on a regular basis due to his unproven record? Check.

There were … Read the rest of this article!

The Vanguard Wellington Fund Is Still Open To New Investors

After recently mentioning that I would consider an investment in the Vanguard Wellington Fund if I wanted to create wealth in such a way that I did not have to spend much time thinking about investments or intended to pass the ownership stake on to someone that did not have much knowledge about investing (i.e. if you wanted to turn your children into trust fund babies in a way that they could not ruin it, you’d want to set up a restricted trust that only permitted the kids to receive the interest and dividend income generated by the fund, perhaps with the instruction that the assets transfer into an S&P 500 index fund if the Wellington Fund were to ever cease to exist).

Anyway, when I wrote about it recently, some readers wanted to know if they were still allowed to contribute to the fund, given the fund’s press release … Read the rest of this article!

Royalty Trust Investing: The Gigantic Risk

At the conceptual level, the idea of investing in a royalty trust sounds like a simple straightforward way to earn income because there is no actual asset that you are operating, but rather, you are sitting on your rear and collecting a portion of the profits or sales from a business enterprise.

Typically, royalties (when present) are a component of start-up funding. Imagine if you wanted to begin a brewery, but did not have the resources to buy commercial brewery equipment. The traditional ways that you would raise funds is by either borrowing money from a bank (and giving them a secured interest in the equipment, and possibly a personal guaranty as well). The other way is that you might give up an equity stake to an investor as a capital raise.

Over the past generation, as wealthy Americans have become flush with capital and have relied upon their advisors … Read the rest of this article!