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Financial Tips

Jan 02 2017

Top Investing Quotes

    Warren Buffett :

  • I prefer to keep all my eggs in one basket and watch that basket closely.
  • Diversification is a protection against ignorance. It makes very little sense for those who know what they’re doing.
  • Price is what you pay. Value is what you get.
  • Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.
  • Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
  • Risk comes from not knowing what you’re doing.
  • Be fearful when others are greedy. Be greedy when others are fearful.
  • Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.
  • I’d be a bum on the street with a tin cup if the markets were always efficient.
  • The dumbest reason in the world to buy a stock is because it’s going up.
  • History tells us that leverage all too often produces zeroes, even when it is employed by very smart people.
    Benjamin Graham :

  • In my nearly fifty years of experience on Wall Street, I’ve found that I know less and less about what the stock market is going to do but I know more and more about what investors ought to do; and that’s a pretty vital change in attitude. The first point is that the investor is required by the very insecurity ruling in the world of today to maintain at all times some division of his funds between bonds and stocks.
  • Individuals who cannot master their emotions are ill-suited to profit from the investment process.
  • The investor’s chief problem – and even his worst enemy – is likely to be himself.
  • Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal. At other times he will do better if he forgets about the stock market and pays attention to his dividend returns and to the operating results of his companies.
    Seth A. Klarman :

  • The foibles of human nature that result in the mass pursuit of instant wealth and effortless gain seem certain to be with us forever. So long as people succumb to this aspect of their natures, value investing will remain, as it has been for 75 years, a sound and low-risk approach to successful long-term investing.
  • Speculators are obsessed with predicting–guessing–the direction of stock prices. Every morning on cable television, every afternoon on the stock market report, every weekend in Barron’s, every week in dozens of market newsletters, and whenever businesspeople get together, there is rampant conjecture on where the market is heading.
  • As Buffett has often observed, value investing is not a concept that can be learned and applied gradually over time. It is either absorbed and adopted at once, or it is never truly learned.
  • Investors believe that over the long run security prices tend to reflect fundamental developments involving the underlying businesses.
  • The real secret to investing is that there is no secret to investing.
  • Every important aspect of value investing has been made available to the public many times over, beginning in 1934 with the first edition of Security Analysis.
    Sir John Marks Templeton :

  • It is impossible to produce a superior performance unless you do something different from the majority.
  • Bull markets are born in pessimism, grow on skepticism, mature on optimism and die on euphoria.
  • There’s only one reason a share goes to a bargain price: Because other people are selling. There is no other reason. To get a bargain price, you’ve got to look for where the public is most frightened and pessimistic.
  • People are always asking me where the outlook is good, but that’s the wrong question. The right question is: Where is the outlook most miserable? The obvious application of this concept in practice is to avoid following the crowd.

Written by Hengfu Hsu · Categorized: Financial Tips, Investment Literatures and Links

Feb 01 2011

Things to Consider Before Signing an Annuity Contract

We frequently see investors’ accounts stuck in inappropriate annuity contracts with insurance companies, facing the dilemma to choose between taking the huge surrender charge penalty or continuing to hold on until surrender period expires. Before signing an annuity contract, here are the tips that may help you avoid the most expensive investment mistake:

(1) Think twice before putting IRA accounts into annuity contracts. IRA accounts are tax deferred or tax free vehicles, is it necessary to put them into another tax deferred vehicles?

(2) Think twice if annuitization is mandatory in the annuity contract. By annuitization, annuitants are betting insurance companies under-estimate annuitants’ life expectancy. Are Insurance companies really that dumb?

(3) Variable annuity has very limited choice of investment options, typically limited to at most a few hundreds of mutual funds. If money is not in an annuity contract, 15,000 mutual funds, 1000 ETF’s, 10,000 stocks, real estates, separately managed accounts, and thousands of alternative investments are available to compete for your business. Which will be more cost effective?

(4) Annuity can be used as a tax deferred vehicle. But if you are paying 2% fee on 5% return, you are paying tax to insurance companies instead of IRS. Paying tax to IRS may not a bad thing after all if you really make money from investment.

(5) Annuity surrender charge is used to pay sales commission. Why not choose an annuity without surrender charge if you really want to buy a contract?

Written by Hengfu Hsu · Categorized: Financial Tips, Investment Myths, Investment Vehicles

Sep 28 2008

Identity Theft Prevention – Easy and Free

The best way to prevent identity theft is to prevent others from accessing your credit files without your approval by placing a free initial 90-day credit alert with one of the three credit reporting companies:

https://www.experian.com/consumer/cac/InvalidateSession.do?code=SECURITYALERT

https://www.alerts.equifax.com/AutoFraud_Online/jsp/fraudAlert.jsp

https://www.transunion.com/corporate/personal/fraudIdentityTheft/preventing/fraudAlert.page

After you setup the alert, you will get a free credit report immediately. You have to setup a reminder on your calendar to do it repeatedly every 90 days.

If you don’t have 5 minutes every 90 days, https://www.lifelock.com does it for you for a fee and provides extra guarantee.

With initial credit alert, junk mails from credit card companies will be reduced significantly because they cannot access your credit report without your approval. To further reduce junk mails to save a lot of trees and prevent your identity stolen from mail thieves, you can remove your names from junk mail mailing list:

https://www.dmachoice.org

Written by Hengfu Hsu · Categorized: Financial Tips · Tagged: identity theft

Sep 27 2008

Living Trust

In California, any estate worth over $150,000 is subject to probate. So anyone owning a house or a real estate in California needs a living trust. The Law Office Of Affordable Living Trust in Saratoga is one of the best and most affordable law offices specializing in living trust. Following is its web site, which contains all the useful information on living trust: https://www.affordablelivingtrusts.com

Written by Hengfu Hsu · Categorized: Financial Tips · Tagged: living trust

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