We’ve been discussing inflation and deflation and today we’ll dig more into hyperinflation. If the world has figured out that buying our debt is a pyramid scheme and that they will be left holding nothing, they will no longer finance our massive deficit each year. This could happen in the blink of an eye and [...]
How can Inflation be worse than Deflation? We described deflation Friday which you can read here, and that seems pretty awful! What’s worse? Hyperinflation! Let’s look at what inflation is, how it can affect you, its two causes, and what can push inflation into hyperinflation.
The usual reason for inflation is an increase in the money [...]
Deflation or Inflation? We mentioned we’re holding an event on Tuesday to prepare you for either. Let’s begin with Deflation. What is a deflationary depression? What does it feel like? How will it affect you? Unless you’re around 90, you and I have never suffered through really difficult times. But our country has seen a [...]
Next Event: “How to be a Steady Investor in Turbulent Times”
Tuesday, March 16th at 7:30pm (one week from today!)
700 E. 11th St, Austin, TX 78701
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Most economists today see us entering a protracted deflationary depression similar to the Great Depression. Others (including many of the most spectacularly successful investors of all time) see [...]
The other day, we began looking at value propositions within investment choices. Today, we’ll continue that with a few more examples.
1) Let’s say that you live in a hot real estate market and values have been driving up. You’re considering buying one of three properties.
The first is a single family home in a market that [...]
Is it important that value be delivered to the marketplace when you’re considering investing in a company or enterprise? Do you understand what value is being delivered to the market and why that value is beneficial to others?
These are important questions that are too often ignored by investors. Too often we get mesmerized by an [...]
When it comes to your investing, “Where does the buck stop?” Anytime you get involved with an investment, you do so because you believe that it will go well. One of the most important things to do when making any new investment decision is to think through all the possible negative outcomes so you have [...]
We’re discussing ways to analyze investments. When discussing leverage, we touched on this next point, but let’s take it further. God made each person in this world absolutely unique. When a unique individual applies what he has been given in an effective way to the marketplace, something special is created. (Obviously it takes more than [...]
The only true way to know that an investment is worthy of your capital is to measure the cash that it produces. You might have savings (such as gold or silver) that produce no cash flow for you, but when analyzing an investment you need to be very aware of its cash flow potential.
If [...]
1) Leveraging relationships – Let’s say that you have assets to invest, but aren’t sure what to invest in. You have a friend who has expertise in a particular field but can’t capitalize on it as much as the potential is there for without more capital. You can each leverage what the other has to [...]