Why Warren Buffett Built A Perpetual Income Machine

When studying what made Warren Buffett such a successful investor, it would be naïve to conclude that he was simply some guy who had extraordinary skill at stock-picking, and then climbed to the top of the investing mountain thereafter due to sustainable excellence in the stock-picking realm. But that only tells half the story. It would be like only discussing a famous self-help public speaker’s days and nights spent working on his public speaking without acknowledging the countless hours spent reading books acquiring the knowledge to provide the right message that was delivered in an attractive fashion.

The reason why Warren Buffett is more of a household name than Charlie Munger, Seth Klarman, … Read the rest of this article!

How Capital One and Midland Credit Management Sue You

After covering JP Morgan Chase’s decision to forgive the credit card debt of its Canadian cardholders, I wanted to focus on one of the other big (but often overlooked) credit card stories of our time–the aggressive enforcement efforts against those with credit card debt taken by Capital One and Midland Credit Management. 

If you are someone who struggles to pay your credit card bills on time, you should stay far and away from Capital One. To understand why, I strongly suggest that you take a read of “At Capital One, Easy Credit and Abundant Lawsuits” that documents the number of lawsuits filed in connection with Capital One credit card debt. 

In … Read the rest of this article!

Yes, You Should Be Worried About Amazon’s Stock


I recently wrote to you about how the drop earlier this week GlaxoSmithKline wasn’t a big deal in the slightest, and how a hypothetical family in 2019 reviewing their reinvested GlaxoSmithKline dividends may actually look back fondly on the share price drop in the middle of Summer 2014 as it provided an opportunity to get a lower price, and thus a higher ownership position in the form of additional shares due to the decline.

Now, I want to discuss a company that does not share GlaxoSmithKline’s outlook. If you follow Amazon, you may have seen that the company reported a $126 million loss for the second quarter of 2014. Although the stock … Read the rest of this article!

Why Did JPMorgan Chase Forgive Canadian Credit Card Debt?

Many of you saw the news today that JP Morgan Chase had decided to forgive the outstanding balances of its Canadian credit card holders as it exits its business in the country. When a bank makes a decision to effectively forego millions of dollars (plus interest) that is due and owing to it, many intelligent readers wonder: “What’s the catch?” 

The answer to the question concerns the cost of collecting debt. The affected accounts concern debt that is mostly between one and three years old. Typically, the average collection rate if pursued through all legal recovery methods is 19% for debt over a year old. As in, if JP Morgan or some debt collector … Read the rest of this article!

GlaxoSmithKline Fell 6%, The World Is Ending, Etc.


One of the advantages of holding a stock for a long time and reinvesting the dividends into the same company that paid out the dividends is that you become very receptive to the idea of falling stock prices. In fact, sometimes I think that only affluent or aspiring affluent private investors that are reinvesting the dividends are the only ones who truly appreciate how falling dividends can aid the income production process.

I want to use GlaxoSmithKline as an example because they are in the news today. The management has a long history of being honest and candid with investors, and actually, they usually get punished for it (that’s why it’s hard for … Read the rest of this article!