Author Topic: The ultimate cheat sheet to being a complainypants  (Read 8520 times)

WildJager

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The ultimate cheat sheet to being a complainypants
« on: November 07, 2014, 02:00:53 PM »
http://www.jamesaltucher.com/2014/04/the-ultimate-cheat-sheet-for-investing-all-of-your-money/

Don't look now folks. Cash is king because I'm cynical. 

Enjoy!

mak1277

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Re: The ultimate cheat sheet to being a complainypants
« Reply #1 on: November 07, 2014, 02:33:38 PM »
Not *totally* wrong:

"C) WELL, WHO MAKES MONEY IN THE MARKET THEN?

Three types of people:

    People who hold stocks FOREVER. Think: Warren Buffett (has never sold a share of Berkshire Hathaway since 1967) or Bill Gates (he sells shares but for 20 years basically held onto his MSFT stock)."

MgoSam

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Re: The ultimate cheat sheet to being a complainypants
« Reply #2 on: November 07, 2014, 02:35:38 PM »
Two words: James Altucher,

I actually enjoy reading him, but would never consider his advice to be anything reasonable. Even in this article, he loves to name-drop and promote himself. He likely is a decent person, but he comes across as a jackass.

gimp

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Re: The ultimate cheat sheet to being a complainypants
« Reply #3 on: November 07, 2014, 02:43:47 PM »
Quote
In the history of capitalism, this is the hardest time ever to invest.

Admittedly I haven't been around investing that long, but from history books, I could pick out a couple times that have been harder.

With that said, pretty much everything else I think is spot-on. Either you make money with buy-and-hold of value stocks (or generally just the entire market), or with a lot of infrastructure and know-how and huge cash reserves for HFT or similar, or through cheating.

I definitely don't agree with a max of 30% into stocks, because my outlook is probably a lot longer than his, and I'm not picking.

Cash is king is a good idea for people who need cash often. It's a good idea if you're going to start a business. Makes sense. People here would tell you the same if you wanted to, say, buy a rental property. It's not a good idea if it sits but he's not advocating having it sit.

Oh, and I think it's probably easier to save money than to earn more, but maybe that's because he's a wall street guy who sells books and runs hedge funds.

ShortInSeattle

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Re: The ultimate cheat sheet to being a complainypants
« Reply #4 on: November 07, 2014, 02:57:13 PM »
He seems like an interesting guy.  I've read several of his articles over the last year and his blog (to me) reads like 15% brilliant insights and 85% manic ranting.




WildJager

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Re: The ultimate cheat sheet to being a complainypants
« Reply #5 on: November 07, 2014, 03:34:44 PM »
OP here.

When I posted this link I was on my phone and couldn't highlight what I thought stood out.  While there is some good insight (he did work in the financial sector afterall...) a lot of his cynicism from failing out of that sector shows through.

Quote
O) IF NO HOUSING AND ONLY 30% OF MY PORTFOLIO IN STOCKS, THEN WHAT SHOULD I DO WITH THE REST OF MY MONEY?

Why are you in such a rush to put all of your money to work? Relax! Donít do it!

Thereís a saying ďcash is kingĒ for a reason. I will even say ďcash is queenĒ because on the chessboard the king is just a figurehead and the queen is the most valueable piece.

That might work if you can make a descent paycheck, but by not getting your money to work (in a proper, capital preservation way) you are mathematically wasting your assets.

Quote
Q) SHOULD I SAVE MONEY WITH EACH PAYCHECK?

No. Just try to make more money. That is easier than saving money. I find that whenever I try to save money I end up spending more. I donít know why that is. Iím a horrible spender, which is probably why Iíve gone broke so many times.

I agree making yourself a more valuable asset so you can have more revenue streams is useful, but telling people not to save money in "The ultimate cheat sheet for investing all of your money" seems a bit of a stretch.


I agree, he does have valid words of wisdom and caution.  However, he takes it to another level and never really delves into the virtue of good investments.

To make an analogy for the crowd here.  Just because I get into a bike accident, doesn't mean I should go around spouting off the dangers and negative aspects to biking in heavy traffic without at least saying, "Now, I could have just stayed on the back roads and sidewalks... but I chose to ride my bike on the highway instead."  Perspective is important.

Travis

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Re: The ultimate cheat sheet to being a complainypants
« Reply #6 on: November 08, 2014, 01:35:30 AM »
Quote
Q) SHOULD I SAVE MONEY WITH EACH PAYCHECK?

No. Just try to make more money. That is easier than saving money. I find that whenever I try to save money I end up spending more. I donít know why that is. Iím a horrible spender, which is probably why Iíve gone broke so many times.

"You shouldn't do something useful because I suck at it." 

Great expert advice there.

GrayGhost

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Re: The ultimate cheat sheet to being a complainypants
« Reply #7 on: November 08, 2014, 11:30:51 AM »
I can agree with the comments about day trading, but that's just because some people have a lack of discipline and are arrogant enough to think that they can beat the index--and most PROFESSIONALS--instead of sticking to indexes, or Dogs of the Dow, or blue chips, with a little asset allocation and diversification thrown in.

surfhb

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Re: The ultimate cheat sheet to being a complainypants
« Reply #8 on: November 08, 2014, 12:30:47 PM »
Maybe needs to be written better I think it's a great article and every point he makes is somewhat correct in line with my own investing plan.

dragoncar

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Re: The ultimate cheat sheet to being a complainypants
« Reply #9 on: November 11, 2014, 12:17:28 AM »
He seems like an interesting guy.  I've read several of his articles over the last year and his blog (to me) reads like 15% brilliant insights and 85% manic ranting.

This one was more like 95% manic ranting, 1% brilliant insights, and 50% hyperbole.

odput

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Re: The ultimate cheat sheet to being a complainypants
« Reply #10 on: November 11, 2014, 08:31:12 AM »
I do like the chessboard analogy, although he has it wrong...if we keep the old adage that cash is king, then stocks (via index funds) are queen.  They can both move in all directions, but the queen can move much further/faster.  This also can continue with the fact that even though you may have lost your queen, you haven't lost the game...

Now that I think about it, I wonder how much further we can draw the chess analogy:

Bonds-->pawns because they generally move forward, albeit very slowly
Real estate-->rooks because early in the game they are not all that big a deal, but are super important to endgame
Precious metals?-->knights because the move in odd shapes and in many directions (I think I'm reaching for this one)

frugalnacho

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Re: The ultimate cheat sheet to being a complainypants
« Reply #11 on: November 11, 2014, 01:13:11 PM »
How is this "the hardest time ever to invest"?  Seems like it's easier than ever for anyone to invest.

sekritdino

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Re: The ultimate cheat sheet to being a complainypants
« Reply #12 on: November 16, 2014, 04:24:52 PM »
Dafuq?!

"Q) SHOULD I SAVE MONEY WITH EACH PAYCHECK?

No. Just try to make more money. That is easier than saving money. I find that whenever I try to save money I end up spending more. I donít know why that is. Iím a horrible spender, which is probably why Iíve gone broke so many times."

clarkevii

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Re: The ultimate cheat sheet to being a complainypants
« Reply #13 on: November 16, 2014, 07:36:23 PM »
I do like the chessboard analogy, although he has it wrong...if we keep the old adage that cash is king, then stocks (via index funds) are queen.  They can both move in all directions, but the queen can move much further/faster.  This also can continue with the fact that even though you may have lost your queen, you haven't lost the game...

Now that I think about it, I wonder how much further we can draw the chess analogy:

Bonds-->pawns because they generally move forward, albeit very slowly
Real estate-->rooks because early in the game they are not all that big a deal, but are super important to endgame
Precious metals?-->knights because the move in odd shapes and in many directions (I think I'm reaching for this one)

I like it. But what are the bishops?

kite

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Re: The ultimate cheat sheet to being a complainypants
« Reply #14 on: November 18, 2014, 06:24:29 AM »
How is this "the hardest time ever to invest"?  Seems like it's easier than ever for anyone to invest.
"THIS" is the hardest time to do anything,  be it invest, start a new business,  find a mate, switch careers,  raise a family, quit smoking or drinking......  it was all easier in the past than right now.   

frugalnacho

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Re: The ultimate cheat sheet to being a complainypants
« Reply #15 on: November 18, 2014, 07:30:41 AM »
How is this "the hardest time ever to invest"?  Seems like it's easier than ever for anyone to invest.
"THIS" is the hardest time to do anything,  be it invest, start a new business,  find a mate, switch careers,  raise a family, quit smoking or drinking......  it was all easier in the past than right now.

Why? None of that stuff seems that hard right now.  I was thinking the exact opposite.  What a time to be alive.

gimp

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Re: The ultimate cheat sheet to being a complainypants
« Reply #16 on: November 18, 2014, 01:02:58 PM »
Sarcasm, ya missed it.

rocksinmyhead

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Re: The ultimate cheat sheet to being a complainypants
« Reply #17 on: November 18, 2014, 01:19:02 PM »
I do like the chessboard analogy, although he has it wrong...if we keep the old adage that cash is king, then stocks (via index funds) are queen.  They can both move in all directions, but the queen can move much further/faster.  This also can continue with the fact that even though you may have lost your queen, you haven't lost the game...

Now that I think about it, I wonder how much further we can draw the chess analogy:

Bonds-->pawns because they generally move forward, albeit very slowly
Real estate-->rooks because early in the game they are not all that big a deal, but are super important to endgame
Precious metals?-->knights because the move in odd shapes and in many directions (I think I'm reaching for this one)

bahaha I love this.

I did really like this line from the article:

Quote
A) SHOULD I DAYTRADE?

Only if you are also willing to take all of your money, rip it into tiny pieces, make cupcakes with one piece of money inside each cupcake and then eat all of the cupcakes.

Then you will get sick, and eat all of your money, but it will taste thrilling along the way. Which is what daytrading is.

it is troubling that he doesn't know the difference between a headwind and a tailwind, though
« Last Edit: November 18, 2014, 01:23:47 PM by rocksinmyhead »

kite

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Re: The ultimate cheat sheet to being a complainypants
« Reply #18 on: November 18, 2014, 04:24:02 PM »
How is this "the hardest time ever to invest"?  Seems like it's easier than ever for anyone to invest.
"THIS" is the hardest time to do anything,  be it invest, start a new business,  find a mate, switch careers,  raise a family, quit smoking or drinking......  it was all easier in the past than right now.

Why? None of that stuff seems that hard right now.  I was thinking the exact opposite.  What a time to be alive.

The narrative is that "these" times are uniquely hard, in whichever era you're in and that the good old days are already over. 

Flynlow

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Re: The ultimate cheat sheet to being a complainypants
« Reply #19 on: November 18, 2014, 08:07:01 PM »
Interesting article, like others have said, there are a few bits of wisdom in there, but a lot of trash as well.


However....

The real ultimate cheat sheet to investing all your money comes courtesy of Scott Adams (of Dilbert fame):

https://retirementplans.vanguard.com/VGApp/pe/PubVgiNews?ArticleName=DilbertGuidetoPersonalFinance

Everything you need to know about financial planning*

1.)Make a will.
2.)Pay off your credit cards.
3.)Get term life insurance if you have a family to support.
4.)Fund your 401(k) to the maximum.
5.)Fund your IRA to the maximum.
6.)Buy a house if you want to live in a house and you can afford it.
7.)Put six monthsí expenses in a money market fund.
8.)Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement.