Saturday, December 10, 2022
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Millennials Too Adverse To Risk

Millennials Too Adverse To Risk

Millennial Babies Need to Get Over their Risk Aversion and Dive Back into Stocks

The idea behind today’s commentary is to fill-in my younger listeners on something that can have a huge adverse impact on their retirement portfolios and hopefully wake you guys up into making positive changes for your future security creation of wealth.

Here the issue in a nutshell: Young Americans, so called millenials, (I hate these short-hand names boomers, seniors, generation y)  have, in their early adult lives, seen multiple stock market crashes, a terrible housing bust, a banking collapse of enormous proportions, high unemployment and rocketing student debt and this has made them rather risk-averse compared to older generations  This risk aversion has seriously impacted their investment behavior to the point where they could fall short of becoming financially secure. So if you or someone close to you is in the 18 to 30 age bracket, pay attention.

Is Your Home A Safe Asset?

Own a Home, By All Means, But Don’t Expect Market Beating Returns

I came across an interesting article on USA Today titled “Why your home is not a good investment” by Morgan Housel, who I’ve had on the show numerous times. The article’s content is what I’d like to put in the myth busting category because its main premise is a house is a large liability masquerading as a safe asset.  Is your home a safe asset, really?

Most American home owners – I’d say 99.999% of them – believe that their homes are fantastic long-term investments that rise nicely in value over time.  Some, truly believe that their homes are the best long-term investment they ever made.  Better than stocks, bonds or gold.  That may be true if an individual investor compares his or her personal investment returns against the rise in the price of his home, but that’s because most individual investors don’t know how to invest properly and generally do very poorly in the stock market and often lose a lot of money.

What Would Warren Buffett Do If He Were 23?

What Would Warren Buffett Do?

A Fantastic Weekend with the Oracle of Omaha

This past weekend, I flew into Omaha, Nebraska, to attend Berkshire Hathaway’s Annual Shareholders meeting.  What a crowd!

About 30,000 Berkshire Hathaway shareholders attended the meeting, with some waiting in line as early as 4 a.m. to grab a good front-row seat at the CenturyLink Center, so they could listen to Warren Buffett and Charlie Munger, capitalism’s most-famous spokesmen, opine on the state of Berkshire’s portfolio and on the American economy going forward.

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