njrookie's random thoughts
A collection of my posts on investment, trading, and life...
博文
(2015-01-23 07:08:39)
Difficultforonepersontoweartwohatsatthesametime.Itisbesttodelegateriskmanagementtoathirdparty,sayyourspouse:
(2015-01-19 13:07:22)
Whenyouhavemulti-yearofincrementalinvestmentinrentalmarkkets,calculatingreturnsgetscomplex.Thesimplewayisjustto:
1.calculatenetsumbyyear(thenetofdownpayment,rentscollected,maintenance,mortgagepaymentsetc);
2.addmarktomarketpropertyvalue(minusmortgagebalanceifany)tothefinalyear.
3.plugonlytheyearbyyearnetcashflowintoEXCELIRRfunction.
Hereistheexamplewithlittle-landlord'sveryimpr...[阅读全文]
1.calculatenetsumbyyear(thenetofdownpayment,rentscollected,maintenance,mortgagepaymentsetc);
2.addmarktomarketpropertyvalue(minusmortgagebalanceifany)tothefinalyear.
3.plugonlytheyearbyyearnetcashflowintoEXCELIRRfunction.
Hereistheexamplewithlittle-landlord'sveryimpr...[阅读全文]
(2015-01-15 05:21:07)
Writingoptionislikeinsurancebusiness.Manysmalltomedium-sizefirmsruntheirownhealthinsuranceplan.Sofornormalreimbursement,theyjustpayfromthepool.Howeverforextremerisk,sayabove$2Mperemployer,thecompanybuyscoverage,iereinsurance,fromathirdpartywithreallyreallydeeppocket.Overall,itisstillmuchcheaperthancontractingeverythingouttothethirdpartyinsurancecompany.
Inoptionworld,youcanachievethesamebysell...[阅读全文]
Inoptionworld,youcanachievethesamebysell...[阅读全文]
(2015-01-08 10:32:33)
Firstapictureisworth1000words.Whatdoyouseebelow?
(2015-01-08 05:38:36)
Asalifetimechickenraiser,Iseethiseveryday:whentherearelimitedamount"goodies",headoftheflock-typicallyabigmeanrooster-takesthefirstpeck;thentheaggressivepure-breedlayinghens;follwedbythedocilecommerciallayers;meatbirdsareatthebottomofthepeckingorder.
Howisthisrelatedtofinance?Therearemanywaystofinancecorporateandgovernmentspending.Sothinkthisintermsofpeckingordersofcapitalstructure:阅读全文]
Howisthisrelatedtofinance?Therearemanywaystofinancecorporateandgovernmentspending.Sothinkthisintermsofpeckingordersofcapitalstructure:
(2014-12-31 21:00:24)
Aftertradingalmostfulltimefor5years,startedtheyearwitha7-figureactivetradingaccountforthefirsttime.Acombinationofover-confidenceandchangeinexchangerulecostedahugedrawdown(>1/2M)inamatterofthreedaysaroundendofJan.Havetotakeoutanother200KtocloseonacoupleofSFHs.Humiliated,humbled,anddeterminedtorecoverthelossesafterthat.Stayedverfocusedformanymonths.TradedOctwavealmostperfectlyandwentbacktoposit...[阅读全文]
(2014-11-05 17:44:18)
Itishighlylaborintensiveanditrequireslotsofdisciplines.Ifyoudoitright,itistoughonthebody,buteasyonthemind.
Donotlistentoanyone.Findyourowngroove,iecomfortablestyleandcomfortableproduct.
Donottouch/speculateonrubbish.Sticktoliquidnamesandcutyourlossesquickly.Youdonotwanttomakesmallgains,butholdontolargelosers.
Donotjumptimeframeswhenyourtradewentagainstyouinyourtimeframe.Donotjustif...[阅读全文]
Donotlistentoanyone.Findyourowngroove,iecomfortablestyleandcomfortableproduct.
Donottouch/speculateonrubbish.Sticktoliquidnamesandcutyourlossesquickly.Youdonotwanttomakesmallgains,butholdontolargelosers.
Donotjumptimeframeswhenyourtradewentagainstyouinyourtimeframe.Donotjustif...[阅读全文]
(2014-11-03 07:15:07)
Therearetwomainfactorsofinputsinaproductionfunction.Youmakemoneyfromcapitalorlabor.Nomatterhowvaluableyourskillsetisandhowhardyoucanwork,youareconstrainedto24hoursadayasdreamsistersaid.Theexpansion?limitgetsreachedverysoonifyouareaW2earner/handyman/laborsupplier.Ofcourse,ifyouareagenius/inventor,thiscanbedifferent,butthattakesaspecialtalentandlotsofluck.
Tomakeunlimitedincome,youneedtomake...[阅读全文]
Tomakeunlimitedincome,youneedtomake...[阅读全文]
(2014-10-31 11:31:41)
Stocks/options/futuresareinstruments/toolsyourenttoexpressyourshorttermviewandoperateyourbusinessinordertomakemoney.
(2014-10-30 08:17:06)
WarrenBuffettfamouslyranapartnershipforasmallgroupofinvestorsbeforeturningBerkshireHathawayintohisinvestmentvehicleofchoice.Heproducedextraordinaryresultsforhimselfandhisinvestors. Manydon’trealizethisbuthisbusinesspartnerCharlieMungeractuallyranhisowninvestmentpartnershipaswell.HereareMunger’sannualreturnsmeasuredagainsttheDowandS&P500frominceptionuntilthefundwascloseddown: ...[阅读全文]
