If Charlie Munger was right about this, why does it feel so wrong?
We just spent almost $10K booking flights, hotels, and experiences for our upcoming London and Scotland trip. And then there’s the food, drink, transportation, and souvenirs we’ll buy. My saver brain is melting: “That’s a bathroom remodel! That’s more stocks! That’s… that’s…” Our net worth just took a five-figure direct hit, but check this out: “If all you succeed in doing in life is getting rich by buying little pieces of paper, it’s a failed life. Life is more than being shrewd in…
🔒The One Thing Companies Can’t Cut…
I heard something exciting on the Motley Fool Money podcast (also shared below and starts at 19:45) by financial planner and market commentator Malcolm Etheridge that I want to share with you. Malcolm doesn’t own Alphabet/Google (GOOG) stock. Why? Google is basically an advertising company in tech clothing. I checked their latest earnings report, and wow – 74% of their revenue comes from ads. That’s $66.9 billion out of $90.2 billion in Q1 2025! Alphabet Q125 Think about what happens in a…
🤯 The WEIRDEST Investing Analogy Ever!
One of my great God-given talents is comparing investing to almost anything. So, I was cleaning my cat’s litter-box, and it hit me… Investment portfolios are a lot like a cat’s digestive system! My cat Louie eats food, gets nutrients from it, and removes what his body doesn’t need. That’s exactly what we should do with our investments! We “eat” stocks by buying them, “digest” them by holding them and maybe getting dividends, and sometimes, we need to “expel” the ones that aren’t helping us…
📊This chart could save your retirement!
During the last major prolonged stock market crash in late 2008—early 2009, I had a conversation with my freaked-out and pissed-off mom. The continual drops freaked her out, and she was thinking about pulling her money out of the market to save what little was left. Even though I wasn’t an active investor then, I questioned this and said, “But if you sell out now, you’ll guarantee losses. How will you know when to get back in?” She told me she couldn’t take watching her money evaporate every…
💰 Dividends That Survive the Dip
You know what they say: opinions are like elbows; everyone’s got them And after the week we’ve had, you’re probably drowning in opinions, predictions, and free advice Facts are cool, though, so here are a few factual things: There are two types of people: Those who DON’T KNOW they can’t predict the future and those who KNOW they can’t From the WSJ: “…45% of U.S. imports are inputs that go into our own manufacturing production. An import tax on these inputs hurts domestic manufacturing.” You…
🔮Crystal Balls Break. This Doesn’t.
Unless you’ve lived under a rock, I’m sure you’ve seen the news about Tesla lately. Their European sales dropped a whopping 49%, even while the overall EV market is growing! And all this backlash against Elon because of his role in the Trump administration. This reminds me of what fund manager Pulak Prasad has been saying for years: discounted cash flow analysis is tough. Who could have predicted two years ago that Tesla would face this kind of situation? Not a single analyst had “Elon runs…
I’m still buying this falling stock, but…
They say if you want to own a great company at a bargain price, you’ll have to wait until it looks like it could be broken. Three examples of companies that looked broken but recovered: In 1997, Apple (AAPL) was nearly bankrupt, and its stock declined 80% before Steve Jobs returned and transformed it into one of the world’s most valuable companies. Starbucks (SBUX) in 2008 saw its stock collapse by 80% during the financial crisis but rebounded after Howard Schultz returned as CEO and…
🧘♂️ 5 Quotes To Keep Calm When Stocks Aren’t
The stock market has been dropping faster than amateur drinkers on St. Patrick’s Day, and the media is predicting doom and gloom. From what I can tell, only two people should be worried: fixed income retirees and traders. Those with long investing horizons ahead of us, get excited because the stock market is less expensive than it was six months ago. 0.28% less expensive to be exact. Will it pop or drop from here? I have no idea, nor does anyone else. But we do know that over time, companies…
A $134 Prison of My Own Making
So I did something potentially stupid last week that you might get a kick out of. Also, there’s a lesson in it somewhere. You probably know I’ve been holding Nexstar Media (NXST) stock for a while now and it’s my #1 individual position. On March 3rd, I was staring at Nexstar’s stock chart and thinking I could predict the future. The indicators I use were screaming “overbought!” after their earnings report. I convinced myself that $180 was this short-term magical ceiling the stock would have…
⏳Paying for 60 Years of Earnings?!
A dividend investing forum will be held on March 5th, 2025, and you can attend for FREE. Details are below. I was listening to Howard Marks on the “Behind the Memo” podcast about his latest piece “On Bubble Watch.” It made me think about Costco (COST), a company I love, with its sky-high P/E ratio of 61.72. Yahoo! Finance Then Marks explained something that grabbed me: buying a stock at a P/E of 16 (the historical average since WW2) means you’re paying for 20+ years of a company’s future…