Investment Performance Guy

Moneyball, I believe there’s a HUGE parallel between baseball statistics and what we do in investment performance measurement. Both deal with calculating performance: the performance of football players / the performance of money managers. Lewis highlights that for the first 150 years of baseball, the incorrect figures were used to judge the performance of players. As a result, the incorrect ones were rewarded and chosen often, resulting in teams not doing as well as they had expected, given the “talent” they chose.

While investment performance’s background is much shorter than baseball’s (roughly 40 years), we have acquired the same issues because we quickly adopted certain measures (e.g., standard deviation for risk, time-weighting for performance) which arguably are WRONG most of the time! And so, what’s the effect? Misleading information, misinterpretation of results, mis-allocation of resources.

Not everyone in football has “signed on” to the new figures, although those who haven’t will continue to suffer. The same can be said inside our industry, where most firms have yet to see the wisdom of alternative measures. We ought to be glad that it hasn’t taken us 150 years to figure out the error of our ways.

The only way to essentially achieve true financial self-reliance is to possess everything in your life and owe nothing. The false belief here’s that you can bring lots of debts and in any other case use money like everyone else around you, as long as you first put just a little aside in a few kind of savings or investment every month.

The truth is that you should PAY ALL OF YOUR DEBTS OFF FIRST, and only then start paying yourself. It’s the only way to dramatically accelerate your journey to financial independence. If you believe about this, it makes sense just. When you initially pay off your financial situation, you then need less to go on each month because you’re only spending money on food, utilities, taxes, insurance, and any other minor expenses, each month departing you with a great deal of savable money. So it will only take months instead of years to save up a sufficient emergency fund. From then on, your retirement investments will build rapidly because you’re funding them at a higher level each month.

Creathwealth8888: I paid off my housing loan in 5 years. DO YOU WANT TO Try To Pay Off Your Housing Loan ASAP WHEN YOU HAVE One? Each month You can get out of personal debt by placing just a little extra on each bill. To effectively eliminate your debts, you have to use the military principle of “massing of forces.” This implies you focus all available resources on ONE debts at the right time. This way, you pay the prospective debt quickly off, thereby recovering its payment, which you will enhance the amount you’ll mass against the next debt, and so forth.

  • Preferred stock can’t be retired
  • No Tenants
  • To evaluate a close-ended debt-fund, a suitable benchmark would be
  • Financial Shenanigans
  • Lost and stolen
  • CD Ladders
  • Accessibility Advantage

A quick guideline is always to pay off your debts in order of their exceptional amounts, working from the smallest balance debts to the biggest. By doing this, the amount available for you to “invest” in your debts will actually accelerate after each debt is paid and you recover what used to be its payment. Targeting debt by interest is not the best strategy generally.

You need to learn how to “manage” credit. You need to learn how to ELIMINATE credit from your daily life. The thought of “managing credit” is similar to “owning a drug dependency.” There’s no such thing as a good way to “manage” something that’s damaging to your well-being. Once you’re debt-free, you’ll never need credit again.