March 2007 Archive
March 2007
Unscrupulous Stock Marketing: Our First Banned Advertiser - March 7, 2007
Our first banned advertisement is a great example of the kind of marketing you should ban as well, from your inbox and your mailbox. Outrageous claims of sky-high returns are a sure sign of an unscrupulous operator. Heed them at your peril. (Read Article).
Warren Buffett’s Warning - March 10, 2007
Warren Buffett issued an ominous warning about our fiscal future in this year’s shareholder letter. Find out how to prepare for fiscal uncertainty. (Read Article).
The Definition of Contrarian - March 10, 2007
An introduction to the mindset of the contrarian investor. (Read Article).
Your 401k: A Call to Action - March 10, 2007
Maxing out your 401k is the first and most important step in securing an independent retirement. Find out why it’s worth making sacrifices to do it, even if your employer’s 401k plan is sub-par. (Read Article).
The Best of the Worst: Picking Mutual Funds for Your 401k Money - March 13, 2007
Learn how to beat 9 out of 10 of professional mutual fund managers, in 5 minutes a year. (Read Article).
Language is a Slippery Thing - March 14, 2007
Stock marketeers use all kinds of language tricks to make outrageous claims while avoiding legal responsibility. Get wise to their tricks. (Read Article).
Let’s Get Real: Investing to Combat Inflation - March 15, 2007
The best way to combat inflation is to invest in real assets. Timberland is one of the best options available. Find out why. (Read Article).
A Yen for Yen: Profiting from the Japan Carry Trade Rollout - March 18, 2007
The Yen is bound to strengthen against the dollar in the coming months. Some experts estimate that the yen is up to 40% undervalued. The Japanese are incentivized to keep the price low, but they can’t keep it there forever. Find out how to profit as the valuations even up. (Read Article).
Single Stock Futures - March 21, 2007
What are single stock futures, and why should you care? Find out why this little-known investment tool belongs in your arsenal. Short-sellers in particular should take the time to learn about them. (Read Article).
If You Have to Ask, You Probably Don’t Need an Annuity - March 22, 2007
By and large, annuities are only a good deal for the person selling them. Investors should steer clear. (Read Article).
Al Gore’s Bright Idea - March 24, 2007
Al Gore has come up with a way to reduce carbon emissions, increase wages and employment, and maintain present government tax revenues, all in one fell swoop, without raising taxes a single penny. How can this be possible? (Read Article).
Net Neutrality: An Urgent Call to Action - March 24, 2007
The Internet is the most democratic, open channel for communication and exchange of ideas in the history of human civilization. We value individuality, self determination, and independence above all else. Until now, the ability to reach a large audience was strictly limited to the wealthy and powerful, due to the great expense of getting the message out. The Internet has changed that. Now, anyone with a great idea can reach a virtually unlimited audience. The only thing standing in the way is whether people find your idea compelling or not. If they do, it is bound to spread and reach its full potential, no matter who you are. (Read Article).
Sorry, But Your Baby is Ugly - March 28, 2007
It is always interesting to me how some investors become emotionally involved with the companies they hold. Yesterday, I published an article about Netflix at Seeking Alpha. The crux of my article was that Netflix is a great comany with a great service, but given the competitive landscape, 33 times earnings looks a bit expensive. I didn’t say the company was going bankrupt. In fact, I explicitly stated the opposite. Nor did I recommend shorting the stock. I simply stated there were likely to be better places for your money.
I was immediately deluged with angry emails from Netflix fans expressing outrage that I had claimed Netflix was “doomed,” telling me I was fool for suggesting Blockbuster was a better investment (I made no such suggestion, and for the record, I recommend strongly against investing in BBI), and making various other emotional, rather than rational statements. In each such case, the writer made it plain that he/she simply had not read my article in full. (Just to be clear, I got several thoughtful and interesting responses as well, and a public responder at Seeking Alpha made a good point about my neglecting to discuss Netflix’s new download service. Check out the discussion following the article.)
I personally love the Netflix service, but I invest in companies, not products. Emotions are a very dangerous thing for investors. If you’re going to fall in love, do it in Paris, not at your broker’s office.
There’s Nothing Magic About Gold - March 30, 2007
Gold is not the magical refuge that some would have you believe. In fact, in the long run, it is a poor investment. Find out why. (Read Article).