Weekend Reading – the power of compounding, dissing FIRE, great utility stocks now and more #moneystuff
Welcome to my latest Weekend Reading edition – where I share some of my favourite articles from the week that was across the personal finance and investing blogosphere.
This was my lone article from this past week:
I’m not sure I should discuss politics too much on this site. It can be rather polarizing. In any event, I will summarize how I feel about our recent Ontario election here:
Enjoy the rest of these articles and see you here next week when I will provide an update about our dividend income journey to semi-retirement/part-time work (hopefully in another 5 or so years).
This was an outstanding read – the psychology of money. If you don’t want to read a few thousand words, here are some excerpts from this article:
- When comparing Grace Groner’s wealth to that of a Harvard educated vice-chairman at Merrill Lynch: “In what other field does someone with no education, no relevant experience, no resources, and no connections vastly outperform someone with the best education, the most relevant experiences, the best resources and the best connections? There will never be a story of a Grace Groner performing heart surgery better than a Harvard-trained cardiologist. Or building a faster chip than Apple’s engineers. Unthinkable. But these stories happen in investing.”
- On the power of compounding: “This gets back to the first rule of compounding: Never interrupt it unnecessarily.”
- On people’s good or bad behaviour with money: “A team of economists once crunched the data on a century’s worth of people’s investing habits and concluded: “Current [investment] beliefs depend on the realizations experienced in the past.” Keep that quote in mind when debating people’s investing views. Or when you’re confused about their desire to hoard or blow money, their fear or greed in certain situations, or whenever else you can’t understand why people do what they do with money. Things will make more sense.”
- On the subject of wealth or perceived wealth: “If you see someone driving a $200,000 car, the only data point you have about their wealth is that they have $200,000 less than they did before they bought the car. Or they’re leasing the car, which truly offers no indication of wealth. We tend to judge wealth by what we see. We can’t see people’s bank accounts or brokerage statements. So we rely on outward appearances to gauge financial success. Cars. Homes. Vacations. Instagram photos.”
Barbara Friedberg joined the retirement police is this post: FIRE – Financial Independence, Retire Early is a bad idea.
Tawcan earned some healthy dividend income. I intend to release my May report next week! You can revisit my April report where we revealed we are 54% towards achieving our long-term (and semi-retirement) goal.
In context of learning from stock market history, Ben Carlson believes experience is overrated.
This is what a YOLO trip looks like – enjoying the Stanley Cup playoffs in….you guessed it, Vegas.
What does wealthy mean to you? It probably means something very different to me than this article. First of all, health is wealth. Second of all, a loving family is wealth. Third, strong friends and good relationships is absolutely more wealth. Fourth and not to be forgotten, following your passions, dreams and aspirations is yet another form of wealth. Maybe then, only then, does some money stuff really matter. What’s your take?
Some reminders how I can save you money…
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A reminder millennials can get rich slowly if they follow the advice here – or anyone can for that matter. This post includes a link to a free ebook from the author.