Get Rich Quick
Welcome to the first installment of my Investment strategy. Get Rich Quick or GRQ for short.
The tech boom of 2001 really deflated my view of mutual funds, and the way they are managed, after all, what
excuse can there be for losing %90 of my money. Have they never heard of a stop loss?
Well that was it for me. I am now a self directed investor, hear to tell my story, and reveal what I have learned.
GRQ is the exact opposite of its Name, in reality, it should be Get Rich Slowly, and Remove the Risk.
It starts by applying the systematic approach to stock picking, defined by Benjamin Graham, and applied
extremely successfully by, Warren Buffet. (ok no secret there)
I urge you to read their books, and anything on Value Investing.
GRQ is a spreadsheet calculation that I have developed, and when it is ready, you may have it for free.
Its not rocket science, but what it does, is take the emotion out of buying and selling within
your portfolio. All you have to do is pick the stocks to put in. And for that I have
Value Finder
A spread sheet that compares stocks, their risk and give's a green light to buy. Ok have I wetted your
appetite? More later...
- axeman
Monday, September 11, 2006
Tuesday, August 29, 2006
Live Well Within Your Means
Rock Bottom
You can never really live, until you hit rock bottom. Some advice a childhood friend said to me many years
ago, and I have heard it repeated many times since then.
If you want to see an example of this, rent the movie Fight Club. It is all about hitting rock bottom.
It is all about survival, what will you do if you have to survive. There really are only 2 choices.
Do what you have to do.
Give up.
Once you make the choice, then you truely are free, but most never get there. Some start early in Life,
they are survivors, they get up in the morning and say, "What do I need to do to accomplish my goals today"
And others, well they say "Do I really have to get up?"
My blog is based 0n this simple principle. "You must start from the bottom, and work your way up"
This is accomplished by a simplified life style, that is healthy, and positive. And here is one way to start.
Reduce you spending and life style to the bare minumum. Only that which you require to survive. Buy or borrow a
tent, drive to a remote camp site, with 1 gallon of water, and 1/2 a loaf of bread. And live there for 1 day and 1 night.
You will have to ration your supplies so you have enough, and yes you may keep some stuff in the car in case of emergency.
But park the car a mile away so it will not be a temptation.
Learn a little meditation before you go, and it is best to go in the off season, usually during the week when everyone
else is still working. Don't talk to anyone, unless they come and talk to you, but enjoy that experience too.
After one day of this, think about simple pleasures that you miss. Shower, flush toilets, friends, kids. All the thing 's
that are most important to you. After that experience, do you really need to go and by that big screen TV?
Will it bring that much pleasure in your life? What if you had to lose the big screen? Could you handle that ?
more later....
- axeman
This my friend is called survival.
You can never really live, until you hit rock bottom. Some advice a childhood friend said to me many years
ago, and I have heard it repeated many times since then.
If you want to see an example of this, rent the movie Fight Club. It is all about hitting rock bottom.
It is all about survival, what will you do if you have to survive. There really are only 2 choices.
Do what you have to do.
Give up.
Once you make the choice, then you truely are free, but most never get there. Some start early in Life,
they are survivors, they get up in the morning and say, "What do I need to do to accomplish my goals today"
And others, well they say "Do I really have to get up?"
My blog is based 0n this simple principle. "You must start from the bottom, and work your way up"
This is accomplished by a simplified life style, that is healthy, and positive. And here is one way to start.
Reduce you spending and life style to the bare minumum. Only that which you require to survive. Buy or borrow a
tent, drive to a remote camp site, with 1 gallon of water, and 1/2 a loaf of bread. And live there for 1 day and 1 night.
You will have to ration your supplies so you have enough, and yes you may keep some stuff in the car in case of emergency.
But park the car a mile away so it will not be a temptation.
Learn a little meditation before you go, and it is best to go in the off season, usually during the week when everyone
else is still working. Don't talk to anyone, unless they come and talk to you, but enjoy that experience too.
After one day of this, think about simple pleasures that you miss. Shower, flush toilets, friends, kids. All the thing 's
that are most important to you. After that experience, do you really need to go and by that big screen TV?
Will it bring that much pleasure in your life? What if you had to lose the big screen? Could you handle that ?
more later....
- axeman
This my friend is called survival.
Friday, June 16, 2006
Live Well Within Your Means
Live Well Within Your Means
There is a lot of controversy now, about US markets tanking, Housing Market, Banks Tanking, Oil tanking, Emerging Markets, Canadian Markets, etc... Bonds falling, the dollar (American)
So what the hell should you be into? Cash sucks, as inflation suck's it up, Gold, Real Estate, they all fluctuate... So here it is.
What is up will go down....
What is down will go down... but not as much... and eventually will go up....
Therefore when doing your reasearch, ask yourself "What is up right now????"
Because if it is up, it is probably overvalued, and a load of hype and crap. These are the ones you will lose your shirt on.
Remember: Value Invest in stocks with low P/E and fundamentals
Always use stop loss (15-30%) (your threshhold may vary, this is my personal range)
What is up: Commodities, Emerging Markets, Canadian Market (because of Oil and commodites), Real Estate, Equities
Long Term, Dividend paying Equity Stocks will outperform any asset class, including Real Estate. I rolled my entire portfolio into Canadian Equity
some 5 years ago, and yes have done very well. But the good times are set to come to a close and it is time to take some money off the table
and go to Money Market holdings. My goals are actually short term, so I need to preserve some capital. But as my Canadian Equity account
is a monthly contribution of $200.00/mth, the dollar cost averaging over the last slump was very profitable. When the market slumps (not if, as we
know this will happen, just not exactly when) I would not worry if my portfolio dropped 10-15%, because it is retirement money, and I can wait out
the next market cycle.
Remember that market cycles are anywhere from 5-11 years with most being about 7, so if you are at a peak in an asset class, (as we are not with housing and comodities)
then you have 3-5 years to wait until the bottom, and another 3-5 till the next peak.
More later on staying withing budget, and reasearching opportunitys. Bye for now.
- axeman
There is a lot of controversy now, about US markets tanking, Housing Market, Banks Tanking, Oil tanking, Emerging Markets, Canadian Markets, etc... Bonds falling, the dollar (American)
So what the hell should you be into? Cash sucks, as inflation suck's it up, Gold, Real Estate, they all fluctuate... So here it is.
What is up will go down....
What is down will go down... but not as much... and eventually will go up....
Therefore when doing your reasearch, ask yourself "What is up right now????"
Because if it is up, it is probably overvalued, and a load of hype and crap. These are the ones you will lose your shirt on.
Remember: Value Invest in stocks with low P/E and fundamentals
Always use stop loss (15-30%) (your threshhold may vary, this is my personal range)
What is up: Commodities, Emerging Markets, Canadian Market (because of Oil and commodites), Real Estate, Equities
Long Term, Dividend paying Equity Stocks will outperform any asset class, including Real Estate. I rolled my entire portfolio into Canadian Equity
some 5 years ago, and yes have done very well. But the good times are set to come to a close and it is time to take some money off the table
and go to Money Market holdings. My goals are actually short term, so I need to preserve some capital. But as my Canadian Equity account
is a monthly contribution of $200.00/mth, the dollar cost averaging over the last slump was very profitable. When the market slumps (not if, as we
know this will happen, just not exactly when) I would not worry if my portfolio dropped 10-15%, because it is retirement money, and I can wait out
the next market cycle.
Remember that market cycles are anywhere from 5-11 years with most being about 7, so if you are at a peak in an asset class, (as we are not with housing and comodities)
then you have 3-5 years to wait until the bottom, and another 3-5 till the next peak.
More later on staying withing budget, and reasearching opportunitys. Bye for now.
- axeman
Live Well Within Your Means
Live Well Within Your Means
Ok where do you get the $50.00? You steal it of course... from yourself. Call the bank and autorize them to steal the money before you
can get it. In 10 Years you can thank me.
Ok where do you get the $50.00? You steal it of course... from yourself. Call the bank and autorize them to steal the money before you
can get it. In 10 Years you can thank me.
Thursday, February 02, 2006
Live Well Within Your Means
Live Well Within Your Means
Ok post #2, it all started many years ago with the Wealthy Barber, and save the money, all it said was... "Invest early, and in a few years,
you will be a millionaire..." well it said more than that, but that is the basis. It doesn't give a lot of insight, such as The intelligent Investor - Benjamin Graham (very good read)
or books by Warren Buffet, Gordon Pape etc.
Get an investment started... don't do a budget, and don't worry about how much you make. Once started, forget about it. Start by putting $50 a month in a balanced account. Most
have a decent return, higher than a money market account, and much better than a savings account. If you are Canadian, and most of what I publish will only pertain to Canadians... put this in a RRSP account. Talk to you banker about this.
So here is the calculatiion. $50 a month over a 10 yr stretch, at the average 10 year rate for the Royal Bank Balanced Account will net...
Avergage interest on investment 8.2%
10yr return = $9,155.30
If registered, you will net 26-40% of this back on your taxes as well. Appoximate value = $2700
Your total value of savings plus tax returned cash would = $11,700
Ya... nice chunk of change... yes it is this easy...
Next post I will show you where to get the $50 from, no matter what your income.
Ok post #2, it all started many years ago with the Wealthy Barber, and save the money, all it said was... "Invest early, and in a few years,
you will be a millionaire..." well it said more than that, but that is the basis. It doesn't give a lot of insight, such as The intelligent Investor - Benjamin Graham (very good read)
or books by Warren Buffet, Gordon Pape etc.
Get an investment started... don't do a budget, and don't worry about how much you make. Once started, forget about it. Start by putting $50 a month in a balanced account. Most
have a decent return, higher than a money market account, and much better than a savings account. If you are Canadian, and most of what I publish will only pertain to Canadians... put this in a RRSP account. Talk to you banker about this.
So here is the calculatiion. $50 a month over a 10 yr stretch, at the average 10 year rate for the Royal Bank Balanced Account will net...
Avergage interest on investment 8.2%
10yr return = $9,155.30
If registered, you will net 26-40% of this back on your taxes as well. Appoximate value = $2700
Your total value of savings plus tax returned cash would = $11,700
Ya... nice chunk of change... yes it is this easy...
Next post I will show you where to get the $50 from, no matter what your income.
Tuesday, January 24, 2006
Welcome to the first addition of Live Well Within Your Means. From time to time I will post ideas
on accumulating wealth and keeping it. In a time when personal debt is at an all time high,
I am one of very few people, that is concentrating on the basics of wealth management.
I will post my views for comment on subjects like the Real Estate Bubble, (yes it is ) Financial Management, cost evaluations, and even my own stock portfolio selection and management system.
Stay Tuned
- axeman
on accumulating wealth and keeping it. In a time when personal debt is at an all time high,
I am one of very few people, that is concentrating on the basics of wealth management.
I will post my views for comment on subjects like the Real Estate Bubble, (yes it is ) Financial Management, cost evaluations, and even my own stock portfolio selection and management system.
Stay Tuned
- axeman
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