Comments on: Daily Links: Wealth and Thrift Edition

By: Anjjol

Anjjol — Wed, 20 Feb 2008 18:12:36 +0000

I was recently forwarded a 20 minute video that puts “stuff” in perspective. I thought it was worthwhile to share. You will never see merchandise in the same way after watching this!

http://www.storyofstuff.com/

By: ~Dawn

~Dawn — Tue, 19 Feb 2008 19:05:27 +0000

J.D
Thanks for the mention…
People can read into things as much as they want to, but I think personal finance is one of the few items in the world that has no agenda… Money has no political ambitions, social agenda or personal obligations.. it is the user of the money that delivers that.

By: Kym

Kym — Tue, 19 Feb 2008 17:41:51 +0000

“Shorting a stock can lead to big gains, but it can lead to big losses, too.”

Really big losses. I work for a mutual funds company, and we abide by many rules so as to protect our clients’ money as much as possible, and one of our rules is that we do not short. The reason for this is that when you buy a stock the regular way, the worst that can happen is you lose all your money. When you short a stock, there is no limit on how much you can lose - it could take off and the sky is the limit. Just something to keep in mind if you’re considering shorting.

By: Minimum Wage

Minimum Wage — Tue, 19 Feb 2008 16:33:31 +0000

Thrift is about living on pasta, potatoes, and rice. Embrace the new poverty now, before you have to.

By: David

David — Tue, 19 Feb 2008 16:22:54 +0000

Thanks for the mention J.D., I appreciate it!

By: VinTek

VinTek — Tue, 19 Feb 2008 16:13:00 +0000

“1. Instead of trying to time the market, try to tie it. Use index funds.
3. Collect sectors. Diversification is your friend.”

And I always thought that if you had index funds mirroring the Wilshire 5000 or the Russell 3000, you automatically had diversification and representation in all sectors. Silly me.

By: icup

icup — Tue, 19 Feb 2008 15:10:11 +0000

@Andy, what does Stein’s stance on evolution have to do with his financial wisdom? Are you saying a person has to be an expert in all fields before they can give advice in any one field?

By: Philip

Philip — Tue, 19 Feb 2008 15:03:56 +0000

“# Andy Says:
February 19th, 2008 at 6:54 am

Is that *the* Ben Stein? I’d think twice before taking any advice from him…

This is the same guy who’s shilling his anti-evolution “Expelled!” movie. If that doesn’t tell you enough about him, I don’t know what does…
”
Yes, because the man’s opinions on Evolution vs. Intelligent Design differ from yours, that *must* mean that he knows absolutely nothing about investing, the economy, or money…

By: Andy

Andy — Tue, 19 Feb 2008 14:54:53 +0000

Is that *the* Ben Stein? I’d think twice before taking any advice from him…

This is the same guy who’s shilling his anti-evolution “Expelled!” movie. If that doesn’t tell you enough about him, I don’t know what does…

By: Dennis

Dennis — Tue, 19 Feb 2008 14:30:20 +0000

Buying when everyone else is selling is timing, but its but its not timing in the normal sense. When most people speak of timing the market they are talking about buying and selling in a short time frame to maximize gains. I believe Ben is talking about using down times as a good way to get a deal and then hold on to that deal for 20 years.

By: JerichoHill

JerichoHill — Tue, 19 Feb 2008 13:24:23 +0000

I think the difference between buying when you want to sell and market timing is that market timing is thought to be more exacting. Buying when others sell and selling when others approximates timing but doesn’t capture its theoretical maximum profits.

By: Camilla

Camilla — Tue, 19 Feb 2008 12:44:17 +0000

@My Shoestring’s2Short: What a fantastic response. *Thank you*.
(I’m off to poke around your blog, too)

@Sharon: Thanks, it certainly keeps me going! And i love the quote from Rikyu. I’ll keep that in mind when i notice myself wanting to buy something as a reaction to sadness, too.

By: Sharon

Sharon — Tue, 19 Feb 2008 12:25:28 +0000

One of my favorite quotes is by Rikyu: How much does a person lack himself, who feels the need to have so many things?

I think about that when I feel the need to shop just because I’m feeling subpar on a certain day….

Camilla- sounds like a wonderful goal/dream…

By: Ron@TheWisdomJournal

Ron@TheWisdomJournal — Tue, 19 Feb 2008 11:20:12 +0000

1. Instead of trying to time the market, try to tie it. Use index funds.
2. When you’re tempted to sell, buy. “When the stock market puts a company on sale, it’s time to buy.”

These two rules are at odds with each other. Anytime you make a decision to buy because you believe the price has bottomed, you are trying to time the market.

Ben Stein even wrote a book on timing the market called Yes, You Can Time The Market. So why all the loathing of “market timers?” Even Warren Buffet admits that he tries to time the market (in letters to shareholders).

It’s become one of those mantras that everyone repeats but few people really believe as demonstrated by their actions.

If a sector or even the entire market is in a nosedive, it makes more sense to put your holdings into cash until there is an indication of a bottom.

By: My Shoestring's2Short

My Shoestring's2Short — Tue, 19 Feb 2008 11:12:06 +0000

I would imagine, Camilla, that Softail Harleys are a passion and a hobby with you, that you are willing to make sacrifices for. Right now that bike is part of your sense of purpose, a dream that frugal choices will allow you to achieve. I am sure you will be loved and respected even without the machine - and that is why you aren’t your stuff! You’ll learn a lot of lessons on the way to riding your dream - who knows, maybe you’ll even be riding it earlier - with money in the bank you can take advantage of any deals that might come up!

By: Camilla

Camilla — Tue, 19 Feb 2008 10:50:54 +0000

>>“You are more than the sum of your Stuff, and the key to happiness is to start thinking as such. You are your health. You are your interests and hobbies. You are your relationships. You are your sense of purpose. You are your dreams.”
~~~
And currently my dream is to have more STUUUUUUUFF!!
Heh. Sorry. But it rather feels that way sometimes - 50% of my motivation for living frugally and keeping a tight rein on my finances, is the promise is being able to buy an ‘89 Softail Harley in 6 years or so. Whoop!
But it’s a very good point, in actual fact. Bizarrely, it’s taken me years and years to realise that “i am not my appearance”, so i guess now i have that sorted i can start working on “i am not my stuff”!