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Sep 7, 2020

Coming Soon the Book the black swan book summary by Nassim Taleb



The Black Swan: The Impact of the Highly Improbable is a 2007 book by author and former options trader Nassim Nicholas Taleb. The book focuses on the extreme impact of rare and unpredictable outlier events—and the human tendency to find simplistic explanations for these events, retrospectively.

Jul 20, 2020

Guide to Investing in Gold and Silver by Mike Maloney!




















You can download the book for free using the below link  https://static.goldsilver.com/pdfs/GTIIGS_MikeMaloney.pdf

Author:
Michael Maloney is host of The smash-hit video series Hidden Secrets of Money, author of the bestselling Precious metal book Guide to Investing in Gold and Silver, and founder of GoldSilver.com, one of the world's most highly regarded investment education companies and a global leader in gold and silver sales.

Mike discovered a passion for monetary history, devouring dozens of books and countless web pages. He discovered that the same economic patterns, or cycles, kept repeating over and over throughout history, from ancient times to modern day.

In 2002 to Mike discovered that gold and silver were incredibly undervalued and started buying.

With that newfound understanding, Mike invested his family's wealth 100% in gold and silver, and remains 100% invested in them today.

In 2004, Mike met famed author and financial educator Robert Kiyosaki, of Rich Dad, Poor Dad fame. Robert encouraged Mike to share his understanding of monetary history, economics, and recurring financial cycles with others, so that they, too, would have the ability to secure their wealth and their families' futures against the increasingly unstable stock markets and financial system.

In 2005 Mike founded GoldSilver.com, began writing his book, and started speaking at investment seminars all over the world to audiences as large as 30,000 people.

"For 2,400 years, as people have lost faith in fiat currencies; they have turned to real money in the form of gold and silver," Mike says. "Today, with global debt spiralling and governments increasingly manipulating currencies and taxing savers, the stage is set for a modern 'gold rush' to the safe haven of precious metals just when supplies of those metals are precariously low. The opportunity for those who position themselves in precious metals ahead of the crowd is like none we will see again in our lifetimes.



The Guide to Investing in Gold and Silver is a virtual gold mine of information about Precious metals investing. In the book, Maloney details the history of economics Cycles, flat currency and the short-sighted decisions governments make that cause flat currencies to lose value over time.



Before Understanding the Guide to Investing in Gold and Silver, Let’s understand what Gold is and why it is so valuable.

Scientists believe all the gold on Earth formed in supernovae and neutron star collisions that occurred before the solar system formed. In these events, gold formed during the r-process. Gold sank to the Earth's core during the planet's formation. It's only accessible today because of asteroid bombardment.

So when a Start is exploded in Space, gold is formed on earth and hence it is considered as God’s money, whose intrinsic value will remain forever and again it is limited in quantity.


The guide to investing in gold and silver gives a lot of interesting background information on money and currency. I found this information very interesting to learn about, and would suggest to anyone interested in creating wealth to learn more about this topic. The main point is gold is real money, do not get confused with currency that the governments hand out. It is very important to know the difference.
After all the history and background information is out of the way, Micheal Maloney moves the focus onto insuring you are investing is the right type of gold. The main concepts are:
1.     Watching out for scams where you think you are investing in gold however never get to hold real metal you have bought.
2.     The importance of having a plan
3.     Best way to buy gold and silver is to buy the physical metal that you own and can hold in your hands.






Michael Maloney has broken the book up into four parts, in which he gives you a good idea about what to expect in the book. As you can see, most of the book is made up of historic information he has researched about the history of money, currency and gold.

Part 1: Yesterday
Chapter 1: The Battle of the Ages
Chapter 2: The Wealth of Nations
Chapter 3: Old Glory
Chapter 4: Greed, War, and the Dollar’s Demise
Chapter 5: From Deep in the Woods the Golden Bull Came Charging
Chapter 6: Booms and Crashes
Part 2: Today
Chapter 7: What’s the Value?
Chapter 8:The Dark Cloud
Chapter 9: The Perfect Economic Storm
Chapter 10: Coming in from the Cold...To Cold!
Chapter 11: The Silver Lining
Part 3: Tomorrow
Chapter 12: The Pendulum
Chapter 13: Golden Castles
Part 4: How to Invest in Precious Metals
Chapter 14: Beware the Pitfalls
Chapter 15: Who Are You, and What’s Your Plan?
Chapter 16: Let’s Get Physical
Chapter 17: Everything Is Illuminated in the Light of the Past 


A lot of people think currency is money. For instance, when someone gives you some cash, you presumably think of it as money. It is not.
Cash is simply a currency, a medium of exchange that you can use to purchase something that has value, what we would call an asset. Currency is derived from the word current. A current must keep moving or else it will die (think electricity). A currency does not store value in and of itself. Rather, it is a medium whereby you can transfer value from one asset to another.     

Money

Money, unlike currency, has value within itself. Money is always a currency, in that it can be used to purchase other items that have value, but as we’ve just learned, currency is not always money because it doesn’t have value in and of itself. If you are having a hard time grasping this, just think about a hundred-dollar bill.

Do you think that paper is worth $100? The answer is, of course, no. That paper simply represents value that is stored somewhere else—or at least it used to be before our money became currency.

The answer is, of course, no. That paper simply represents value that is stored somewhere else—or at least it used to be before our money became currency. Later we will study the history of our currency and the gold standard, but for now all you need to know is that the U.S. dollar is backed by nothing other than hot air, or what is commonly referred to as “the good faith and credit of the United States.” In short, our government has the ability to, and has been, creating money at will without anything to back it up. You might call this counterfeiting; the government calls it fiscal policy. The whole thing is what we refer to as fiat currency.    

All currencies in use today are fiat currencies. At first it will sound strange to you, but it will only serve to highlight, and bring greater understanding of, the differences between currency and money.

The Inflation and Deflation in an economy rises due to the expansion or contraction of the currency supply.


Here’s the dirty little secret: Fiat currency is designed to lose value. Its very purpose is to confiscate your wealth and transfer it to the government. Each time the government prints a new dollar and spends it, the government gets the full purchasing power of that dollar. But where did that purchasing power come from?

It was secretly stolen from the dollars you hold. As each new dollar enters circulation it devalues all the other dollars in existence because there are now more dollars chasing the same amount of goods and services. This causes prices to rise. It is the insidious stealth tax known as inflation, robbing you of your wealth like a thief in the night.


Throughout the centuries, gold and silver have battled it out with fiat currency, and the precious metals have always won. Gold and silver revalue themselves automatically through the free market system, balancing themselves against the fiat currency in the process. 

This is a pattern that has been repeating and repeating since the first great currency crash in Athens in 407 B.C. 

Once a government has introduced a paper currency, they then expand the currency supply through deficit spending, printing even more of the currency to cover that spending, and through credit creation based on fractional reserve banking. Then, usually due to war or some other national emergency, like foreign governments or the local population trying to redeem their demand notes (bank runs), the government will suspend redemption rights because they don’t have enough gold and silver to cover all of the paper they have printed, and poof! 


The Author explains about the stupid mistakes people makes in terms of fiat money, people have learned the kind of damage fiat currency can cause and how gold and silver prices were revalued by giving many example and stories from history.

People started converting their notes to coin, and bought anything of transportable value. Jewellery, silverware, gemstones, and coin were bought and sent abroad or hoarded.

In order to stop the bleeding, in February of 1720 the banks discontinued note redemption for gold and silver, and it was declared illegal to use gold or silver coin in payment. Buying jewellery, precious stones, or silverware was also outlawed. Rewards were offered of 50 percent of any gold or silver confiscated from those found in possession of such goods (payable in banknotes of course). 

The borders were closed and carriages searched. The prisons filled and heads rolled, literally. 

Finally, the financial crisis came to a head. On May 27, the banks were closed and Law was dismissed from the ministry. Banknotes were devalued by 50 percent, and on June 10 the banks reopened and resumed redemption of the notes for gold at the new value. When the gold ran out, people were paid in silver. When the silver ran out, people were paid in copper. 

As you can imagine, the frenzy to convert paper back to coin was so intense that near riot conditions ensued. Gold and silver had delivered a knockout blow.

So the book is all about the importance of investing in gold and silver and how over the years the currency value backed by gold is being manipulated by the goverment and the fiat currency has devalued and how it effected the middle class people by creating inflation and hence looting the common people and how can the common middle class people save themselfs from this loot by the goverment.

Jul 13, 2020

The Wit and Wisdom of Charles by T. Munger




Looking for a great book click on the link https://amzn.to/3eIj4wU












About the Author:
Charles Thomas Munger (born January 1, 1924) is an American investor, businessman, former real estate attorney, architectural designer, and philanthropist. He is vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett; Buffett has described Munger as his partner.


This book has many interesting and great piece of advice of how to live happy, meaningful, memorable and successful life!






The Author explained the 25 Rules for happy, Successful life and Investing
1.     Reward and Punishment Superresponse Tendency — incentives
2.     Liking/Loving Tendency
3.     Disliking/Hating Tendency
4.     Doubt-Avoidance Tendency — we reach conclusion then don’t have doubts
5.     Inconsistency-Avoidance Tendency
6.     Curiosity Tendency
7.     Kantian Fairness Tendency — we expect fairness
8.     Envy/Jealousy Tendency
9.     Reciprocation Tendency
10. Influence -from-Mere-Association Tendency — ie aspirational advertising
11. Simple, Pain-Avoiding Psychological Denial
12. Excessive Self-Regard Tendency — we think too highly of ourselves
13. Overoptimism Tendency
14. Deprival- Superreaction Tendency — loss hurts more than win feels good
15. Social-Proof Tendency
16. Contrast-Misre action Tendency
17. Stress- Influence Tendency — social proof becomes stronger
18. Availability-Misweighing Tendency
19. Use-It-or-Lose-It Tendency — need to keep using your skills or you forget
20. Drug-Misinfluence Tendency
21. Senescence-Misinfluence Tendency — cognitive decay with age
22. Authority-Misinfluence Tendency
23. Twaddle Tendency — just chitchat and procrastinate
24. Reason-Respecting Tendency — we learn better if we now the reason
25. Lollapalooza Tendency-The Tendency to Get Extreme Consequences from Confluences of Psychological Tendencies Acting in Favor of a Particular Outcome





Jul 6, 2020

The Simple path to wealth by J L Collins!






     


Looking for a great book. Please click on the link https://amzn.to/38w7HXv

About the Author:
JL Collins wrote The Simple Path to Wealth as a guide to money and investing for people who realize that money is important, but would rather spend their time raising kids, advancing in their careers, pursuing other passions and making the world a better place.Jun 25, 2016



Understanding Money:

Most people ignore learning the basics of personal finance because it seems too complex or boring. But in investing a few hours in learning the basics, you can position yourself to make your money work for you, not against you. And in doing so, you can start making decisions independent of money, instead of the reverse.


Since money is the single most powerful tool we have for navigating this complex world we’ve created, understanding it is critical. If you choose to master it, money becomes a wonderful servant. If you don’t, it will surely master you.





Jun 29, 2020

How to get Rich by J Paul Gatty!






Looking for the book.... Click on the link https://amzn.to/2VuJwU6

How to get rich, read books online














About the Author: J. Paul Getty, in full Jean Paul Getty, (born December 15, 1892, Minneapolis, Minnesota, U.S.—died June 6, 1976, Sutton Place, Surrey, England), American oil billionaire reputed to be the richest man in the world as per Fortune Magazine in 1957. 

Getty was a man of principles, and in his book he explained the valuable and expert advice about life.  At some time of life, he was gone into depression, and then he struggled to control the estate, and this took 20 years to finish. The significant opportunities in the market are not for everyone so becoming rich depends on the desire, creativity as well as on the energy.

 

J. Paul Getty was the richest man of the world according to Fortune Magazine. He was a visionary and a man of principles and value. 


He was a man of principles. Getty promoted working to make society a better place. He was also in support of cooperating with labor unions and as per him, becoming rich also has some responsibilities. These include a positive attitude and a decent character.

This in turn funded many easy-money and selfish millionaires. From his age’s point, Getty offers new management techniques. He discusses how being wealthy and getting rich are different. We appreciate the ageless value of his knowledge. Plus, his business advice holds even now. Hence, we highly recommend this inspiring business biography.


He wrote books about the secret of getting rich and disclosed secrets of their success. Paul Getty explained some critical blueprints in his book that anyone can follow in his footsteps. 

Getty was famous for his wealthy decisions and actions in society, and we felt that the books mentioned responsibilities on individuals for a decent character. The fascinating discussion in the book was a positive attitude, and we appreciate the management techniques discussed in the book.

Ordinary people can also become rich. All they need is enough desire, energy and creativity. 
People who cry over lack of business prospects are just making excuses. Their reasons vary from high taxes, unfair competition through to high-cost of labor. But, if you pay your staff more, they can purchase more. Plus, no business ever ended only due to high taxes. Besides, if you face high competition, use it to your advantage. Rather than taking such steps, many people give up before even starting. It’s because fear and defeat prevent them from seeing opportunities.  


The Young Millionaire  
Getty became a millionaire by age 24 as he wished to retire early, however, his parents tried to convince him to stay productive. This was because many people’s lives depended on their company.
Hence, in 1919, he again entered the oil business. This time he started drilling in South California. He worked with his crew, motivating them. But, due to the in depression in 1929, much like 2020, the firm’s stock fell too much.
In 1930, after his father’s death, Getty started controlling the estate. He also ran the oil company side by side and searched for oil. Getty began buying big oil firms in South California. In 1932, he purchased the Tide Water Associated Oil Company. This was not a friendly merger and hence took 20 years to finish.
Getty was the head of the Mission Corporation in the late 1930s. He bought the Hotel Pierre for $2.3mn. Besides, he also bought a hotel in Mexico. Getty even wanted to enlist for WW2. But, he was too old for that. He learned that his aircraft firm was key to the war effort. Hence, he started to manage the operations. He increased production and stayed at the factory until the war got over. This was the time when he expanded in the Middle East for the oil business. His oil field in Saudi Arabia produced 13mn barrels. By 1954, he had his fleet of oil tankers.
Gettys explained the 10 key rules to reach a financial independence:
  1. Go into businesses you know and understand.
  2. Focus on producer more enormous amounts of good products/services.
  3. Be economical first. Then think of making money.
  4. Don’t ignore new chances of expansion. They can be anywhere. But, check properly and don’t fall prey to the urge to over-expand.
  5. Delegate jobs in your business. But, always be responsible for overseeing your workers.
  6. Reduce costs and improve productivity. This should be the same in both good and bad times.
  7. Take risks. And be ready to use borrowed funds. But, always pay back the loans fast. This will help improve your credit rating.
  8. Always be on the look for new markets and opportunities.
  9. Take pride in what you do. Keep a flexible service policy and solve consumer issues fast.
  10. Wealth comes with responsibility. Hence, use your money to help others. These may also include your workers, shareholders.







Getty give an inside on the different types of People

  • A millionaire mindset needs hard-work, knowledge, and focus. People are of four main categories. But, not each one of them has the traits to become wealthy.
  • People who don’t want to work for anyone – These people are independent. For them controlling their own lives is more crucial than a paycheck.
  • People who want to work for others and share in the profits – This feature is most common in best sales professionals.
  • People who are happy to work for others – These people want the safety of a paycheck. But, they don’t have the confidence and drive to work independently. Or even on commission.
  • Salaried employees who don’t want to help employers make a profit – Such people don’t do much work. And, they don’t even add value to free-enterprise.


The Millionaire Mindset


This mindset focuses on efficiency, profit-motive and cost awareness. In other words, this means having an eye for detail, while saving and making money. Pushing inefficient people into retirement is sensible. Because keeping them in your firm will be more costly.

The Executive Way
  • Good executives are great at directing the activities of their staff. 
  • They’re loyal, productive and can solve issues fast. 
  • These people are creative and independent thinkers. 
  • They don’t micromanage, follow directions blindly or use too much oversight. Instead, they lead by example. 
  • They can both explain and instruct what is needed. Besides, they’re also accountable for the work of their subordinates. 
  • Hence, if it’s good or bad, they take the blame if their supervision was inadequate. Great executives don’t ask others to do things they won’t do themselves. 
  • They praise their people publicly. But never lash out at them in front of others.

Don’t Stress About the Wrong Things

Getty said that many executives are stressed. 
The reason is not that they worry about the amount of their work. Instead, they emphasize keeping their jobs. 
As a boss, he saw stressing about job and overwork as a weakness. Hence, he suggested the use of a positive mindset to handle tough employees. 
He led by example as he was always a hands-on manager. His beliefs were not to push employees to become efficient. Instead, to guide them for the same.
He said that mutual respect and trust are the base for productive communication. 
It’s because negativity is harmful. When people see that their contributions don’t matter, they disconnect. They may even become aggressive and steal things and for them, such acts are justified as the firm distanced them. But, when people turn negative, management puts more boundaries. This in turn further distances people.


Facing Challenges


Getty avoids roundabout bargain. He didn’t delegate. Instead, he directly spoke with union leaders. He told directly that their demands were very high. Plus, he showed the company’s reports stating that real state-of-affairs. Getty gave evidence to back his claims. 

This unarmed union leaders who finally accepted his original offer. When a company’s profits increased in a year, Getty increased wages.



Getty said that labor unions like honesty and straight answers. Once they have the facts, they make sound decisions. Getty knew the rights of the collective bargain. Plus, he praised how unions increased staffs’ living standards. Hence, he never faced issues with unions.


These did mean that negotiations were around better working conditions and higher wages. But, for Getty these demands were reasonable. He understood that employees are like consumers. Hence, the more income they had, the better it was for the nation’s economy.

Great managers face tough situations head-on. American business history has many such turnaround stories. Where executives faced adversity, but then revived their firms. Such stories include Ford Motor Corp, Valley National Bank, American Motors and United Fruit Co. 

In every case, when issues came, managers didn’t run away. Instead, they analyzed the situation and created a plan, and if they wanted more time, they took it, they didn’t panic. 

Also, some of these firms’ managers also had to make sacrifices. This was important to remain in the fight. But, in the end, they emerged victoriously.

Art and Fan Mail

Getty had a considerable interest in collecting art. Plus, he saw great art as a sound investment. For example, he bought the Ardabil Persian rug. This was one of the two best carpets in the Western world. Getty bought it for $68,000 in 1938. Then, in 1958 Getty gifted it to the LA County Museum of Art. At that time the value of this rug was $1 million.
Getty had five marriages and said that none of his marriage worked. His four sons also joined the oil business. They first worked in the firm’s gas stations changing tires and oils. Getty got around 3,000 letters monthly from strangers. They were mainly requesting money, asking for jobs or marriage proposals. Despite being a billionaire, Getty said that true richness is something different. It comes when people do what they like and follow lasting values. As per him, status seekers were very materialistic. For these people status and financial freedom were the same. But for Getty true wealth was following principles and doing something good for the society.

Jun 14, 2020

The Little Book of Common Sense Investing by John C. Bogle


 

 Looking for the great book to buy. Check out the link https://amzn.to/2UJAWR4

The Author says that, the simplest and most efficient investment strategy is to buy and hold all of the nation’s publicly held businesses, which is index fund at very low cost." Bogle maintains that the "classic index fund" that owns this market portfolio is the only investment that guarantees a fair share of stock market returns.


The book elaborates on the same practice of index investing that Bogle built the Vanguard Group around to turn a profit for clients.

Now, the index funds make up for $1 trillion in funds invested. All investment experts like Warren Buffett and William Sharpe recommend these funds. They say these are perfect for an individual investor. In this book The Little Book of Common Sense Investing, Bogle discusses what index funds do. He also explains why they’re so reliable. So, if you’re an investor, reading this book is a must. 


Author:
John C. Bogle (born 8 May 1926), who founded the Vanguard Group of Investment Companies in 1974 and built it into a giant mutual fund company, with $4.9 trillion in assets under management today, died on 16th Jan 2019.

John C. Bogle is the author of this book The Little Book of Common Sense Investing. He’s also the CEO and former chairman of Vanguard Mutual Fund Group. Vanguard is the world’s most prominent complete no-load mutual fund firm. In 1976, Bogle launched the 1st index fund of the world for ordinary people and built his empire based on his core principles of investing.


   The book explains the following concepts: 

  •  What is an Index Fund? 
  •  Why this Funds is Trustworthy? 
  •  Who should invest in Index Funds? 
  •  What are the returns on this fund compared to other funds and Individual Stocks?         
  • The way emotions, short- run mindset and admin fee impact your investment?
  • Why you must avoided fund traded on the Exchange? 
The author says that many investors don’t have any professional knowledge or training.
Consequently, they don’t check a company’s worth, and it’s stock’s value. Nor can these investors forecast a firm’s share value in the future. Thus, he advises investors to be conservative in their choices. He recommends putting money in a diverse portfolio. And the stocks in such portfolio must be held on to in the long run.
The ideal way to broadly invest is by buying an index fund. This covers the whole market. Your plan must be to buy the entire market. And then, hold on to it for the long-term. This investment principle is a sure win. In contrast, speculative investments will lose over the same time-frame.





Index Fund:

An index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index

An index mutual fund is said to provide broad market exposure, low operating expenses, and low portfolio turnover. These funds follow their benchmark index regardless of the state of the markets. 

Index funds are generally considered ideal core portfolio holdings for retirement accounts, such as individual retirement accounts. Legendary investor Warren Buffett has recommended index funds as a haven for savings for the later years of life. Rather than picking out individual stocks for investment, he has said, it makes more sense for the average investor to buy all of the S&Ps 500 Index companies at low cost an index fund offers.
An index fund is a portfolio of stocks or bonds designed to mimic the composition and performance of a financial market index.

Index funds have lower expenses and fees than actively managed funds.
Index funds follow a passive investment strategy. Index funds seek to match the risk and return of the market, on the theory that in the long-term, the market will outperform any single investment.

The core idea behind index funds is straightforward. Index funds have the highest number of diversified shares. These funds denote a portfolio holding a range of stocks which comprise an index. When the businesses in the index pay dividends, their firms’ value grows. And, so do their share prices. Overall, such growth increases the total value of an index. Hence, as all the businesses in a specific index grow, investors holding those funds prosper too.

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