Thursday, September 6, 2018

Individual Investors Underperform

In 2012 Dalbar reported that although individual investors managed to keep up with the markets during that one year, over the long run (3, 5, and 20 years), they underperformed the markets.

The fact remains that having a trusted professional help you achieve your goals is well worth the exposure. In another study focused on pension investments, trustee-managed accounts significantly outperformed individual investor accounts (15 percent versus 7.70 percent.)

Jeff Bezos rockets to richest person on the planet

Bezos (above) has regained his crown as the richest person on the planet.

Published Sep 5, 2018,

SAN FRANCISCO (AFP) - As Amazon became the second US firm to hit a trillion-dollar value on the stock market, founder Jeff Bezos regained the crown as the richest person on the planet.

Amazon's share price has climbed during the year, lifting the personal wealth of the company's 54-year-old founder with it. Forbes estimated his net worth about US$166 billion (S$228 billion).

He has gone on record with a formula for success that includes taking bold bets, riding change and rebounding from setbacks.

"You need to be nimble and robust so you need to be able to take a punch and you also need to be quick and innovative and do new things at a higher speed, that's the best defense against the future," Bezos said in an interview published in Vanity Fair magazine last year.

"You have to always be leaning into the future. If you're leaning away from the future, the future is gonna win, every time."

TINKERING TODDLER

Jeffrey Preston Bezos' penchant for experimenting reportedly dates to a young age - with one widely-recounted story telling that he tried to dismantle his own crib as a toddler.

His mother was a teenager when she gave birth to Bezos in Albuquerque, New Mexico, on Jan 12, 1964.

"You shaped us, you protected us, you let us fall, you picked us up, and you loved us, always and unconditionally," Bezos said in a Twitter message thanking his mom "for everything" on Mother's Day in May.

She remarried when her son was about four years old, and he was legally adopted by his Cuban immigrant stepfather who worked as an engineer at a major petrochemical company.

"My dad came here from Cuba all by himself without speaking English when he was 16 years old, and has been kicking ass ever since," Bezos said in a Father's Day tweet in June.

"Thank you for all the love and heart, Dad!"
His mother's family were settlers in Texas, where Bezos spent many a summer working at a ranch owned by a grandfather retired from a job as a regional director at the US Atomic Energy Commission.

Bezos was enchanted by computer science when the IT industry was in its infancy and he studied engineering at Princeton University.

After graduating, he put his skills to work on Wall Street, where by 1990 he had risen to be a senior vice president at investment firm DE Shaw.

He surprised peers by leaving his high-paid position about four years later to open an online bookseller called Amazon.com, which according to legend was started in a garage in a Seattle suburb. Bezos was backed by money borrowed from his parents.

Bezos went from being a boy with a love for how things work to being the man who built Amazon.com into an internet powerhouse.


Amazon grew to dominate commerce and become a formidable contender in cloud computing, streaming television, and artificial intelligence with its digital assistant Alexa.

LONG-TERM THINKING

Bezos has such a proven track record for shaking up the business sectors he enters that he has been dubbed "disruptor-in-chief."
Like his company, Bezos has transformed with time, shaving his head and bulking up his body with exercise. The results were immortalised in a series of photos taken at a conference last year.

Wednesday, September 5, 2018

We Are Tempted to Follow the Crowd

Bubbles happen in the markets because everyone is doing the same thing and it also happens to be the worst possible thing they could be doing at the time.  The common thread through bubbles is greed, whether that greed is institutional or individual. The dot-com bubble happened because everyone thought the Nasdaq run would never end, while tech start-ups were burning cash like it was so much refuse. The reality check came with a thud. The housing bubble happened because people were cajoled into thinking their homes could only go up in value ー and that, too, ended with an economy-shocking and recession-inducing thud.

Where are the masses rushing to next? Risky income-producing investments? Take your guess. One thing you can be sure of is that human nature will not change: people will follow other people , and the majority will get burned. It is good to seek some contrarian advice now and then. We are emotionally driven creatures, and the recent findings in behavioral finance demonstrate that these emotions fool us and lead into poor financial decisions most of the time.

As with most things in life, you get what you pay for. That I can buy a stock for only $7 does not mean I am going to profit from that purchase. In fact, because it is so easy and inexpensive to buy in and out of that stock, the odds are increased that I will act on impulse and trade in and out at the wrong times. More important than the cost of making an investment is the quality of that investment. You can easily go broke in a short time at $7 a trade. I am reminded of a great Warren Buffett quip: "With enough insider information and a million dollars, you can go broke in a year."

Individual Investors Underperform (click here)

I Don't Always Know What I Do Not Know

Remember the online brokerage ads and the do-it-yourself proponents who wanted you to believe that nobody is to be trusted and that you should do this all on your own? Call me stupid, but when I am looking to blame someone for making the wrong financial moves, I find myself at the top of the list. I have made more than my share of mistakes — many of which would have been avoided with professional consultation. The opposite also holds true. There have been instances when my instinct were right and I allowed a professional to talk to me out of a decision. But on the whole, I would rather find someone worthy of my trust and not have all the stress myself. in my case, I work with someone who advises and consults with me when I think I have an idea. The bottom line is that we need someone worthy of our trust.

We Are Tempted to Follow the Crowd (click here)

Healthy Wealth reader asked one simple question:


Blogger Unknown said...
Sir, I had suffer from GERD and HNP for many years and taking medication from doctor doesn't solve the problem, does this exercise can help heal my problems?
August 27, 2018 at 2:29 AM
Delete
Blogger Its ME said...
From: Unknown said...
Sir, I had suffer from GERD and HNP for many years and taking medication from doctor doesn't solve the problem, does this exercise can help heal my problems?

August 27, 2018 at 2:29 AM

Its ME said:

First thing first. Prevent further cellular dehydration , immediately,
1. Follow the water Cure Protocol Formula.

2. Yes, if you do the Swing Arms exercise , diligently for 30 minutes daily, you will see results.
September 5, 2018 at 7:43 PM
Delete
Blogger Its ME said...

Gastroesophageal reflux disease


Gastroesophageal reflux disease, or GERD, is a digestive disorder that affects the lower esophageal sphincter (LES), the ring of muscle between the esophagus and stomach. Many people, including pregnant women, suffer from heartburn or acid indigestion caused by GERD.
September 5, 2018 at 7:47 PM
Delete
Blogger Its ME said...
HNP stands for herniated nucleus pulposus, and describes the condition in which the gel-like inner material of a spinal disc — the nucleus pulposus — pushes through the thick, outer disc wall and extrudes into the spinal canal. HNP is basically another term for the condition known as a herniated disc.
September 5, 2018 at 7:48 PM

Image result for gerd meaning

Image result for HNP

Physician Fails to Diagnose GERD Resulting in Esophageal Carcinoma

  • 1. Could a diagnosis of GERD been made earlier and what effects on survival would it have?

Expert Witness Response

An earlier diagnosis of GERD could have been made based upon proper history taking and further testing. Patient should have been asked about diet and lifestyle due to the fact that spicy foods, smoking, alcohol use, caffeine, hot drinks and smoked foods can all contribute to GERD. Acidity of the esophagus could have been evaluated by a physician either through pH testing or response to antacids. After the development of GERD, and before the development of cancer, patients develop an intermediate condition called Barrett’s esophagus. If GERD or Barrett’s was found, patient could have been started on a proton pump inhibitor, or other antacid, to combat these conditions. This would stop the progression to full carcinoma. Once the patient develops esophageal cancer, it is almost always fatal.

Chapter 16: Don't Go It Alone

The best interest of the patient is the only interest that matters. ~ Dr. William Mayo

I have spent the better part of my life living in Rochester, Minnesota, the home of the world-renowned Mayo Clinic (click here), an organization that has a well-earned reputation for excellence in health care. All of my children, at some point, have had surgeries there, and one observation my wife and I have made is how transparently sensitive and caring the practitioners have been. In a realm that is often populated by practitioners who can come off as detached and overly scientific in their approach, it is always a breath of fresh air to encounter a professional who truly seems to have your best interest at heart.

At the Mayo Clinic this is no accident of personality or culture. It is by design. early in the development of the clinic, the Mayo brothers stated that the culture would be built upon three (3) core principles: COMPETENCE, CARING, AND INTEGRITY. everyone in the organization, from the top of administration to those mopping the halls, is inculcated with these cultural principles of operation. I hope they can continue this kind  of culture in an age where quantity (seeing more patients, profits making) is more important than quality (spending more time with patients) in the health care realm.

I cite the Mayo example as an analogy to what we should expect to receive when we are seeking financial advice. After our health, our concern for our financial well-being occupies a high place on our totems of life.
"Wealth care" ought to be approached with the same level of competence, caring, and integrity that has proven to produce great results in the realm of health care.

The temptation to put one's own interests ahead of those whom we ought to be serving can and does manifest in every realm, whether it be a doctor recommending a procedure, a mechanic recommending a repair, or a financial advisor recommending a fund. In every realm of practice we will find the Good, the Bad, and the Ugly. Many people have been financially harmed by incompetence, by a lack of concern and negligence, or by a lack of integrity in their financial matters, just like they may have been harmed by the same inadequacies in their health care pursuits or other matters in life.

If you have a bad experience with a medical doctor, do you neglect medical care for yourself? Think of your money management as fiscal health. for every selfishly motivated financial sale-person or marketer, there is a highly competent and personable professional out there who has built his reputation by helping others reach their goals by putting clients' interest first.  We simply need to know how to distinguish one from the other. It can be easy to get fooled. “Fool me once, shame on you; fool me twice, shame on me.” Wrote George Horne, an English divine: “When a man deceives me once, says the Italian proverb, it is his fault; when twice, it is mine.” "

Here I want to make the case for finding someone who is competent, caring, and trustworthy for the very simple reason that saving yourself the stress is worth the price of oversight in the long run. Some of the reasons I think it is worth considering hiring a competent professional include:

1. We don't always know what we do not know.
2. We are tempted to follow the crowd.
3. Individual investors historically underperform the indexes (if you just parked your money over time).
4. It is time consuming and stressful to manage money on a day-to=day or week-to-week basis.

I Don't Always Know What I Do Not Know (click here)

Tuesday, September 4, 2018

Swedish LAGOM is .....

Lagom is a Swedish word meaning "just the right amount".

The Lexin Swedish-English dictionary defines lagom as "enough, sufficient, adequate, just right".

 Lagom is also widely translated as "in moderation", "in balance", "perfect-simple", and "suitable" (in matter of amounts).


What is the point of amassing stuff if you never get the chance to appreciate it again?

If you liked hygge, lykke and lagom, you'll love 'death cleaning', the new Scandi trend.

Spring cleaning is wonderful. At least it is in Sweden. Around April, it begins to get lighter outside; there is sun, and it comes in through the windows - some of it at least because the windows are grimy after all the snow and salt and polar bear paw-prints. And the lighter it gets, gradually you begin to notice the filth you have been living in during the dark winter.

By May, you can put it off no longer. You spring clean for an entire weekend and come Sunday night you feel good about yourself in a moralistic, Swedish way. You are adhering to standards of household hygiene. You are building a healthy state, and you haven't just watched Netflix like you did all last weekend. In Sweden, "Christmas cleaning" is a big deal, as is the cleaning you do when you have to move. There is "Midsummer cleaning" and a million other occasions to get the mop out.

My favourite is the cleaning you do after a party. I love it when the guests leave and I can get to work. First, I take a bucket and empty all the half-drunk cocktails into it (I might take a swig) and flush it down the lavatory, then I empty ashtrays, looking at the lipstick traces, seeing who smoked what. I always play Chet Baker when I am doing the dishes, sudsing the teacups people drank out of when there were no clean glasses left.


Picking crushed olives out of the carpet, I replay the evening, who I talked to, who went home with whom. Or I gaze at the ceiling, perplexed as to how the whipped cream got there. Sometimes I think I throw parties just so I can have these magical cleaning moments, when everyone is asleep and I am alone, wandering about. Wondering.

My mother has a different passion. She enjoys death cleaning. A year ago, I left Stockholm on a business trip to New York. In a free moment I had time for lunch with my oldest, dearest friend from college. Midway through our meal she started to share her worries. Her mother and father were getting old and, although they were sprightly, my friend was anxious about the junk her parents had amassed - attic rooms and cellars full of stuff they never used and never would.

My friend was concerned that she and her brothers would have to take weeks off work to help their parents clean up. Or, if they moved to a nursing home and were too frail to do the cleaning themselves, or if they were to die before moving to a nursing home. 

What is the point of amassing stuff if you never get the chance to appreciate it again?

Die. It sounds harsh. We don't want to think about it. Death. It will happen. I wasn't very understanding. I said: "I don't have that problem, my mother is death cleaning." We even have a word for this in Sweden: döstädning.

I told my friend how my mother, after my father died, spent a year cleaning out her home before moving into a smaller apartment. She had gone from basement to attic getting rid of everything she no longer wanted or needed. I told my friend that my mother had had a good time doing it, too. In fact, she enjoyed it so much, that she is now doing a second wave as she death-cleans the smaller apartment where she has lived for the past few years.

After all, what is the point of amassing so much stuff if you never get the chance to appreciate it again - if you leave it collecting dust, and then just die? She was going through all her possessions and letting the memories wash over her. She was happy.

Also, because she is ­considerate, she didn't want to leave a big mess for us five children to clean up. My mother wants to be remembered for the charming and funny woman she is. Not for the clutter she left behind.

My friend listened. She works in publishing and I saw her mind wander. I kept talking and then she interrupted me. "Jane," she said, "I think there is a book in what your mother is doing."

I shook my head. "No, really. Your mother's attitude towards death is very clear and sane. Maybe she can help others think about death. About what they leave behind. Can she write a book about what she is doing?"

 
'My favourite is the cleaning you do after a party. I love it when the guests leave and I can get to work', says Jane.

I hesitated. My mother doesn't like being the ­centre of attention. Everything she does she likes to do in private. But I agreed to ask her if she would write about her methods and thoughts.

I know that she is annoyed with her friends who are her age and don't care - who say their­ ­children will have to take care of all their stuff once they are gone. Also, when you visit her, you have to be careful not to compliment her things. If you say, "oh, what a nice vase!" she will answer, "do you want it?" If I give her a plant in a pot one week, the next week she will give me a plant - in the same pot.

With more expensive items, she has been even more practical. As we are five children, and she only had one ­diamond bracelet, she took it to an ­auction and had it sold. She never ­consulted us; it was, after all, her bracelet and she was free to do with it what she wanted. Once she informed us it was already done, we didn't mind. Who wants to spend time arguing over a bracelet that five people cannot share?

I have witnessed my mother solve problems in this practical way all my life. I remember my teenage brothers in a brawl on our lawn. They were too big and too angry for my mother to intervene. Quickly, she went and got the garden hose and started spraying them with cold water. The fight stopped and everyone started laughing. Genius!

The evening I got back from New York, I went to see my mother (she lives next door). I told her what my friend had said. She listened. A week later she was writing. A year later she was done and the book was being launched at the Frankfurt Book Fair. While we all thought the book was great, and fun, we had no idea what an insane response it would get.

Death cleaning | Key vocabulary
Dö: death
Städning: cleaning
Gammal oldSnickarbod: toolshed
Redskap-shod: gardenshed
Fulskåp: ‘cabinet for the ugly’/ cupboard of nasty gifts
Skräp: junk
Omoderna kläder: unfashionable clothes
Rora: mess

Although my mother has always been a very modern woman, ahead of her time in so many ways, we couldn't imagine that her ideas about death cleaning would resonate across the world. On the other hand, hers is the first generation to have grown up and lived in this crazy consumer society, so there must be many attics and basements full of unused and unloved things that should just be got rid of.

As the book has been ­published around the world, my mother has been doing interviews every week. She is annoyed by this, as it takes time that she would rather be spending cleaning. My mother has had to clean up after so many dead people that she'll be damned if I should have to clean ­after her.

Things have been calming down lately. And every time I visit her there is less and less stuff in her still very cozy little flat. I will truly miss her when she is gone. But I won't miss her things.

The Gentle Art of Swedish Death Cleaning by Margareta Magnusson (Canongate, £12.99). To order for £10.99 plus