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Fixed Deposits And Equities In The Barbell Strategy


wealthymatters

If the all the risk-reward stories of the portfolio theory mutualfundwale don’t grab you, here’s an alternative strategy for the independent investor : The Barbell Strategy.

Here’s what it involves :

Building a portfolio that recalls a barbell. That is : On one side, there’s a basket of extremely safe investments. On the other side, there’s a basket of extremely speculative plays. The weight is distributed between two extremes, with almost nothing in the middle. Read more of this post

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Daniel’s Story


wealthymatters– ” What was the riskiest investment you made that paid off?”

-” I bought a Bitcoin in 2012 for $10.

Everyone in the office laughed at me but I was fascinated by the concept of decentralized currency and how it could re-shape finance as we know it. The friend that sold it to me is now Chairman of Israel’s Bitcoin Association and since I got one of the physical coins from Casascius which are no longer produced, it holds a huge collector value which is sits around 4–6 times the current $2,300 worth of 1 bitcoin.

Pretty good ROI.” – Daniel Buchuk

 

The High Beta Rich


Robert Frank’s new book “High-Beta Rich-How The Manic Wealthy Will Take Us To The Next Boom,Bubble And Bust” is based on interviews with more than 100 people with net worths (or former net worths) of $10m or more. These include the Blixseth family, former billionaires who had to lay off all 110 staff in their enormous residence; the Siegels, who had to abandon the largest private house in the US before it was completed; and Jack Warner, who built a fortune from various business, but ended up a penniless handyman.It is also a tale of how the financial crash of 2008 has affected the US more generally. It includes numerous unemployed former butlers, unoccupied mansions and falling tax revenue for fiscally-pressed state governments. In addition, Frank tells the story of upmarket repo men who specialise in repossessing planes, yachts and the like from indebted millionaires.So basically Frank revisits the lives of the people he profiled in Richistan, and follows up on what has happened to them in the years since he wrote the book in 2006. By 2011, some of these rich people have since gone from riches to rags, or merely to less affluence. His follow up on the people whose jobs it was to serve the needs of the rich shows how many of them are now finding it hard to secure stable jobs from the rich since the 2008 .Since the book with vivid sketches of how the rich, and the formerly rich, really live  is a sequel to Richistan, published in 2007, in which he profiled the lives of the rich before the recent financial bust, do read it before starting on this one. Read more of this post

Learning From Sir John Templeton


wealthymatters.comSir John Templeton (November 29, 1912 – July 8, 2008) was a legendary investor and a pioneer of global investing. He took value investing to an extreme, picking industries and companies he believed to be at rock bottom, or as he called it “points of maximum pessimism.”He bought when there was blood on the streets. For example,when investors fled the New York market after the Second World War was declared, Templeton borrowed $10,000 to scoop up stocks priced at less than a dollar, often in companies that were near bankruptcy. In four years, he sold the stock, paid off the debt and pocketed $40,000—the seed money for Templeton Growth Fund, a market beater for many years.

Templeton did not care where a company was located. If it was selling below what he considered to be its asset value, and if it was in an industry or nation that was “out of favor,” he was interested in it. He was among the first to invest in postwar-Japan and among the first to sell out of Japan in the mid-1980s. He was one of the very few who invested in Peru when the communist Shining Path was running rampant, and by doing so, he reaped a fortune for his investors.   Read more of this post

Collecting Gemstones


wealthymatters.comCollecting gemstones is a fantastic hobby.Observing the play of light in gems and taking in their myrid hues is really very soothing.It is astonishing just how beautiful some of nature’s creations can be.Gem collecting is a hobby almost anyone can indulge in for all gemstones are not expensive.In fact many semi-precious stones cost just a few  rupees.

Gemstones selected carefully and bought at the source at wholesale prices and held passively for a couple of decades can be reasonably good investments. They definitely keep up with inflation.

Gemstones are collected for their beauty.So taking your time to select the most beautiful stones is essential.Also it’s important to read up on the different ways in which natural gemstones are treated.Read up on whether treatments affect their desirability for other collectors.By paying a little attention to other people’s preferences while still buying gemstones you find beautiful will ensure a greater liquidity in future.Avoid paying retail rates unless the stone is extraordinary and even then bargain.Otherwise you are unlikely to ever recover the money you sink into your collection.The average jeweler will sell you a stone for two or three times what he paid for it wholesale and he’ll buy a stone from you for half of wholesale.

If collecting loose gemstones is not so interesting maybe you can buy gemstones on wholesale and have them fashioned into jewellery? This is another way of investing in gemstones.If you can handle the cost and quality control issues you can acquire beautiful jewellery at a fraction of retail prices. Read more of this post

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