Saturday, April 28, 2012

Truth In Advertising

What's different about me from other individual investors that makes me so successful? It's because I have the ability see what other people think and how they will behave, and can focus my attention on how their behavior will affect the big picture.

Thursday, April 26, 2012

The REO Specialists

Readers of this blog can pretty much figure out that I focus most of my efforts on the stock markets. But, that doesn't mean I've ignored all the other markets, especially the real estate market. I've been patiently watching and waiting for real estate to bottom-out for years. I've also previously shared my views freely and openly on this sector too. But again, no one would listen.

I'm not sure why people chose not to even investigate my claims, but in mid-2006, I was constantly warning anyone who would listen to consider just how crazy the real estate market had become, and that there was something seriously wrong with it.

But instead, everyone I spoke with chose to listen to the criminals in the real estate and mortgage industry, and buy outrageously-priced homes and land during the bubble. Absolutely no one gave me any credibility and dismissed my warnings as the musings of a lunatic. So, while I'm still upset that the perpetrators of the greatest crime in America got off scot-free, I think most people can understand why I don't feel much sympathy for underwater homeowners.

Fortunately for me, I believed in myself and chose to wait to buy a home until I thought the real estate market reached bottom. Just recently, in August 2011, I bought a fully-renovated REO foreclosure to live in for pennies on the dollar. It was so reasonably-priced that I was able to pay cash for it and now live in my home debt-free. Although I bought it as a place to live instead of an investment, in the short time that I've lived here, it's already appreciated twenty-percent in value.

But, I only mention this story because [at least where I live] real estate has already reached a market bottom. Where once REO foreclosures predominated home sales, they're now falling by the wayside. The smart investors who capitalized on these home bargains in the past year or two have waited the storm out, and are now beginning to realize the fruits of their patience.

But, don't just take my word for it. Listen to the REO specialists yourself -

Tuesday, April 17, 2012

Unrecognized Geniuses

Inventors - some people consider them crazy. I consider them geniuses. They change the world.

Inventor Portrait: Brent Farley from David Friedman on Vimeo.

Too Big To Fail

Richard Fisher, president of the Federal Reserve Board of Dallas, says the financial reform bill is too complicated and still leaves the system at risk. Go figure.

Source: Top Fed Official: “The Moment Is Now” to Break Up Big Banks

Tuesday, April 10, 2012

She's Come Undone

I had a feeling this was going to happen. The stock market started listening to those who don't see the beauty in her as I do, and began to withdraw. Like many beautiful and fickle young women, she wasn't going to allow me to ignore her to fend on her own. My praise helped her reach new levels, but without my constant support, she's gotten a little frazzled and come undone.

Like any long-term relationship, this one also has it's ups and downs. I blame myself for not paying closer attention and giving her the encouragement she needed. But, I'm not going to kick her to the curb like other investors just because of a small bump in the road. No sir, not me.

History has proven to me that this is not a insurmountable problem that a short amount of time can't heal. I'm going to stick with her, keep reminding her of her true potential, and ride this thing out.

Monday, April 9, 2012

FRONTLINE | Money, Power and Wall Street

In this special four-hour investigation, FRONTLINE will tell the inside story of the struggles to rescue and repair a shattered economy, exploring key decisions, missed opportunities, and the uneasy and unprecedented partnership between government leaders and titans of finance that affects the fortunes of millions of people around the world.

Beginning April 24th on PBS FRONTLINE. Here's the trailer -