Purchasing Stock Quotes

We need a moderately-priced stock market… The market, like the Lord, helps those who help themselves. But, unlike the Lord, the market does not forgive those who know not what they do. For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.

The slave trade was not controlled by any state or government. It was a purely economic enterprise, organised and financed by the free market according to the laws of supply and demand. Private slave-trading companies sold shares on the Amsterdam, London and Paris stock exchanges. Middle-class Europeans looking for a good investment bought these shares. Relying on this money, the companies bought ships, hired sailors and soldiers, purchased slaves in Africa, and transported them to America. There they sold the slaves to the plantation owners, using the proceeds to purchase plantation products such as sugar, cocoa, coffee, tobacco, cotton and rum.

Moderately fast growers (20 to 25 percent) in nongrowth industries are ideal investments. • Look for companies with niches. • When purchasing depressed stocks in troubled companies, seek out the ones with the superior financial positions and avoid the ones with loads of bank debt. • Companies that have no debt can’t go bankrupt. • Managerial ability may be important, but it’s quite difficult to assess. Base your purchases on the company’s prospects, not on the president’s resume or speaking ability. • A lot of money can be made when a troubled company turns around. • Carefully consider the price-earnings ratio. If the stock is grossly overpriced, even if everything else goes right, you won’t make any money. • Find a story line to follow as a way of monitoring a company’s progress. • Look for companies that consistently buy back their own shares.

He had, with great cost, acquired a vast stock of wisdom, which is not soon lost when it is purchased so dear.

A man sits in an office deciding what stocks to buy. He imagines, no doubt, that he is planning his purchases according to his own judgment. In actual fact his judgment is a melange of impressions stamped on his mind by outside influences which unconsciously control his thought. He buys a certain railroad stock because it was in the headlines yesterday and hence is the one which comes most prominently to his mind; because he has a pleasant recollection of a good dinner on one of its fast trains; because it has a liberal labor policy, a reputation for honesty; because he has been told that J. P. Morgan owns some of its shares.

Yet they believe blindly in the stock market, and in the abilities of their pension plan manager. Why do they do so? Because they accept that this is what people should do with their savings, because "experts" tell them so. The doubt their own sense, but not for a second do they doubt their automatic purchases in the stock market.

Your goal as an investor should be simply to purchase, at a rational price, a part interest in an easily understood business whose earnings are virtually certain to be materially higher, five, ten, and twenty years from now. Over time, you will find only a few companies that meet those standards-so when you see one that qualifies, you should buy a meaningful amount of stock.

Most frequently given of such reasons is the conviction that a general stock market decline of some proportion is somewhere in the offing. In the preceding chapter I tried to show that postponing an attractive purchase because of fear of what the general market might do will, over the years, prove very costly. This is because the investor is ignoring a powerful influence about which he has positive knowledge through fear of a less powerful force about which, in the present state of human knowledge, he and everyone else is largely guessing.

students need only two well-taught courses—How to Value a Business, and How to Think About Market Prices. Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now. Over time, you will find only a few companies that meet these standards—so when you see one that qualifies, you should buy a meaningful amount of stock. You must also resist the temptation to stray from your guidelines: If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value. Though it’s seldom recognized, this is the exact approach

The accepted version of history is that the Federal Reserve was created to stabilize our economy. One of the most widely-used textbooks on this subject says: "It sprang from the panic of 1907, with its alarming epidemic of bank failures: the country was fed up once and for all with the anarchy of unstable private banking."23 Even the most naive student must sense a grave contradiction between this cherished view and the System's actual performance. Since its inception, it has presided over the crashes of 1921 and 1929; the Great Depression of '29 to '39; recessions in '53, '57, '69, '75, and '81; a stock market "Black Monday" in '87; and a 1000% inflation which has destroyed 90% of the dollar's purchasing power.24

that a single independent workman has stock sufficient both to purchase the materials of his work, and to maintain himself till it be completed. He is both master and workman, and enjoys the whole produce of his own labour, or the whole value which it adds to the materials upon which it is bestowed. It includes what are usually two distinct r

The worst continued to worsen. What looked one day like the end proved on the next day to have been only the beginning. Nothing could have been more ingeniously designed to maximize the suffering, and also to insure that as few people as possible escape the common misfortune. The fortunate speculator who had funds to answer the first margin call presently got another and equally urgent one, and if he met that there would still be another. In the end all the money he had was extracted from him and lost. The man with the smart money, who was safely out of the market when the first crash came, naturally went back in to pick up bargains. The bargains then suffered a ruinous fall. Even the man who waited for volume of trading to return to normal and saw Wall Street become as placid as a produce market, and who then bought common stocks would see their value drop to a third or a fourth of the purchase price in the next 24 months. The Coolidge bull market was a remarkable phenomenon. The ruthlessness of its liquidation was, in its own way, equally remarkable.

We added that the stock component should carry a fair degree of protection against a loss of purchasing power caused by large-scale inflation.

Assets are the new savings bank.

In reality, many universities have direct investments in corporate America in the form of substantial stock portfolios. By purchase and persuasion, our institutions of higher learning are wedded to institutions of higher earning.

Independent bookstore are a valuable asset to any city, town or village. They offer us the latest literary releases, a meeting point where authors share their work and meet new readers and fans. They offer us a rich ‘bookish’ environment in which to browse before we buy. I love to sip coffee and leaf through my new purchase. I can be sure that independent booksellers know their stock, they suggest new authors and broaden my reading. Along with public libraries they are key to our communities.

Adopting and extending the existing system of mamluk recruitment, he purchased thousands of young male slaves, drawn from Kipchak Turkish and, later, Caucasian stock. These boys were trained and indoctrinated as mamluk troops, and then at the age of eighteen freed to serve their masters within the Mamluk sultanate. This approach created a constantly self-rejuvenating military force–what one modern historian has called a ‘one-generation nobility’–because children born of mamluks were not regarded as being part of the martial elite, although they were permitted to enrol in the army’s second-tier halqa reserves.

Picture salvation as a house that you live in. It provides you with protection. It is stocked with food and drink that will last forever. It never decays or crumbles. Its windows open onto vistas of glory. God built it at great cost to Himself and to His Son, and He gave it to you. The purchase agreement is called a 'new covenant.' The terms read: 'This house shall become and remain yours if you will receive it as a gift and take delight in the Father and the Son as they inhabit the house with you. You shall not profane the house of God by sheltering other gods nor turn our heart away after other treasures.' Would it not be foolish to say yes to this agreement, and then hire a lawyer to draw up an amortization schedule with monthly payments in the hopes of somehow balancing accounts. You would be treating the house no longer as a gift, but a purchase. God would no longer be the free benefactor. And you would be enslaved to a new set of demands that he never dreamed of putting on you. If grace is to be free - which is the very meaning of grace - we cannot view it as something to be repaid.

a person who is free to make a $20,000 purchase of a car as a customer, might not be free to buy an office chair for $500 as an employee. Little wonder that big companies grow more slowly than small ones (firms whose chief executives attend the annual World Economic Forum schmooze-fest in Davos tend to underperform the stock market), and big public bodies have worse reputations than small ones.

On September 20, the New York Stock Exchange halted trading for ten days. Grant received emergency pleas for purchases of Treasury bonds to add liquidity to national banks, while Thomas Murphy, the former New York customs collector, wired: “Relief must come immediately or hundreds if not thousands of our best men will be ruined.” Not since 1837 had such a spasm of fear flashed through Wall Street.

People have been stockpiling necessities such as toilet paper, bread, water, and junk food. I never understood the whole bread thing, because no one ever seems to purchase anything to go with the bread. Peanut butter is still stocked, as jelly. What do these people do with their bread in the event of an emergency? Huddle down beside their piles of toilet paper and eat plain slices of bread until help arrives?

By nature a philosopher is not in genius and disposition half so different from a street porter, as a mastiff is from a grey-hound, or a grey-hound from a spaniel, or this last from a shepherd's dog. Those different tribes of animals, however, though all of the same species are of scarce any use to one another. The strength of the mastiff is not in the least supported either by the swiftness of the greyhound, or by the sagacity of the spaniel, or by the docility of the shepherd's dog. The effects of those different geniuses and talents, for want of the power or disposition to barter and exchange, cannot be brought into a common stock, and do not in the least contribute to the better accommodation and conveniency of the species. Each animal is still obliged to support and defend itself, separately and independently, and derives no sort of advantage from that variety of talents with which nature has distinguished its fellows. Among men, on the contrary, the most dissimilar geniuses are of use to one another; the different produces of their respective talents, by the general disposition to truck, barter, and exchange, being brought, as it were, into a common stock, where every man may purchase whatever part of the produce of other men's talents he has occasion for.

The buggy should be here soon. Do you have your suitcase packed?” “So eager to get rid of me?” “Eager?” he repeated, rolling back the sleeves of his favorite indigo coat. “My kitchen will be empty in two days and I’ll be forced to purchase my own groceries. How could I be eager for that?” Ceony smiled and scooped out more egg. “You could always have Jonto cook your meals.” In fact, Emery once had tried to get Jonto to cook his meals. It had taken the paper magician two days to reconstruct the right hand and arm of the paper skeleton, which had burned off after Jonto attempted to light the coals in the oven. “I’ll be sure to stock up on sandwich supplies,” Emery murmured. And all you’ll miss is the food, hm?” His eyes glimmered. “I may miss the mid-night companionship.” Ceony flushed. “Emery Thane!” That was one time. Emery just chuckled, the cursed man. 

WHAT DOES IT ALL MEAN? The lessons of market history are clear. Styles and fashions in investors’ evaluations of securities can and often do play a critical role in the pricing of securities. The stock market at times conforms well to the castle-in-the-air theory. For this reason, the game of investing can be extremely dangerous. Another lesson that cries out for attention is that investors should be very wary of purchasing today’s hot “new issue.” Most initial public offerings underperform the stock market as a whole. And if you buy the new issue after it begins trading, usually at a higher price, you are even more certain to lose. Investors would be well advised to treat new issues with a healthy dose of skepticism. Certainly investors in the past have built many castles in the air with IPOs. Remember that the major sellers of the stock of IPOs are the managers of the companies themselves. They try to time their sales to coincide with a peak in the prosperity of their companies or with the height of investor enthusiasm for some current fad. In such cases, the urge to get on the bandwagon—even in high-growth industries—produced a profitless prosperity for investors.

With his free hand, Thomas produces a small key. It’s like an elevator key, one of those round, single-purpose gizmos that don’t seem to have a reason for being except in an elevator, a device that brings to mind all the other silly little inventions: can openers, lemon zesters, melon ballers. Things that do only one thing. We have so many of them. Where do we get this shit? Bridal shower and wedding gifts, stocking stuffers, spur-of-the-moment purchases at Ikea. They’re all so goddamned useless, hidden in the backs of kitchen drawers, taken for granted and never taken out. This is what goes through my mind as Thomas frees me with the high-tech equivalent of a can opener.

If yet I have not all thy love, Dear, I shall never have it all, I cannot breathe one other sigh, to move, Nor can entreat one other tear to fall, And all my treasure, which should purchase thee, Sighs, tears, and oaths, and letters I have spent. Yet no more can be due to me, Than at the bargain made was meant; If then thy gift of love were partial, That some to me, some should to others fall, Dear, I shall never have thee all. Or if then thou gravest me all, All was but all, which thou hadst then; But if in thy heart, since, there be or shall New love created be, by other men, Which have their stocks entire, and can in tears, In sighs, in oaths, and letters outbid me, This new love may beget new fears, For, this love was not vowed by thee. And yet it was, thy gift being general; The ground, thy heart, is mine, whatever shall Grow there, dear, I should have it all. Yet I would not have all yet; He that hath all can have no more, And since my love doth every day admit New growth, thou shouldst have new rewards in store; Thou canst not every day give me thy heart, If thou canst give it, then thou never gavest it: Love's riddles are, that though thy heart depart, It stays at home, and thou with losing savest it: But we will have a way more liberal, Than changing hearts, to join them, so we shall Be one, and one another's all.

Each woman was valued at 150 pounds of tobacco, which was the same price exacted from Jane Dickenson when she eventually purchased her freedom. Not surprisingly, then, with their value calculated in tobacco, women in Virginia were treated as fertile commodities. They came with testimonials to their moral character, impressing on “industrious Planters” that they were not being sold a bad bill of goods. One particular planter wrote that an earlier shipment of females was “corrupt,” and he expected a new crop that was guaranteed healthy and favorably disposed for breeding. Accompanying the female cargo were some two hundred head of cattle, a reminder that the Virginia husbandman needed both species of breeding stock to recover his English roots.37 Despite

There was a small mini-market serving the area. It was sparsely stocked, a few bags of crisps and boxes of cereal displayed under harsh strip lights that spat and fizzed. Alcohol and cigarettes, however, were well provided for, secured behind the Perspex screen from behind which the owner surveyed his business with suspicious eyes. Milton nodded to the man as he made his way inside and received nothing but a wary tip of the head in return. He made his way through the shop, picking out cleaning products, a carton of orange juice and a bag of ice. He took his goods to the owner and arranged them on the lip of counter ahead of the screen. As the man rang his purchases up, Milton looked behind him to shelves that were loaded with alcohol: gin, vodka, whiskey.

Even if index numbers cannot fulfill the demands that theory has to make, they can still, in spite of their fundamental shortcomings and the inexactness of the methods by which they are actually determined, perform useful workaday services for the politician. If we have no other aim in view than the comparison of points of time that lie close to one another, then the errors that are involved in every method of calculating numbers may be so far ignored as to allow us to draw certain rough conclusions from them. Thus, for example, it becomes possible to a certain extent to span the temporal gap that lies, in a period of variation in the value of money, between movements of Stock Exchange rates and movements of the purchasing power that is expressed in the prices of commodities.

In the case that upheld the second AAA, Wickard v. Filburn, (1942), a farmer had been fined for planting 23 acres of wheat, instead of the eleven acres the government had allotted him—notwithstanding that the "excess" wheat had been consumed on his own farm. Now how in the world, the farmer wanted to know, can it be said that the wheat I feed my own stock is in interstate commerce? That's easy, the Court said. If you had not used your own wheat for feed, you might have bought feed from someone else, and that purchase might have affected the price of wheat that was transported in interstate commerce! By this bizarre reasoning the Court made the commerce clause as wide as the world and nullified the Constitution's clear reservation to the States of jurisdiction over agriculture. The

Basically, Graham breaks the art of investing down into two simple variables – price and value. Value is what a business is worth. Price is what you have to pay to get it. Given the stock market’s manic-depressive behavior, numerous occasions arise where a business’ market price is distinctly out of line with its true business value. In such instances, an investor may be able to purchase a dollar of value for just 50 cents. Note that there is no mention here of interest rates, economic forecasts, technical charts, market cycles, etc. The only issues are price and value. I should also note that Graham emphasizes a large margin of safety. The strategy is not to buy a dollar of value for 97 cents. Rather, the gap should be dramatic so as to absorb the effects of miscalculation and worse-than-average luck.

What does it mean when customers don't take a deal? Does it mean that they didn't want the product as much as they did want the one they bought? Is a negative signal as strong as a positive one? Perhaps they like Champagne but already have a lot in stock. Maybe they just didn't see your e-mail newsletter that month. There are a lot of reasons why someone doesn't take an action, but there are few reasons why someone does. In other words, you should care about purchases, not non-purchases. The fancy way to say this is that there's an “asymmetry” in the data. The 1s are worth more than the 0s. If a customer matches another customer on three 1s, that's more important than matching some other customer on three 0s. What stinks though is that while the 1s are so important, there are very few of them in the data—hence, the term “sparse.

The slave trade was not controlled by any state or government. It was a purely economic enterprise, organised and financed by the free market according to the laws of supply and demand. Private slave-trading companies sold shares on the Amsterdam, London and Paris stock exchanges. Middle-class Europeans looking for a good investment bought these shares. Relying on this money, the companies bought ships, hired sailors and soldiers, purchased slaves in Africa, and transported them to America. There they sold the slaves to the plantation owners, using the proceeds to purchase plantation products such as sugar, cocoa, coffee, tobacco, cotton and rum. They returned to Europe, sold the sugar and cotton for a good price, and then sailed to Africa to begin another round. The shareholders were very pleased with this arrangement. Throughout the eighteenth century the yield on slave-trade investments was about 6 per cent a year – they were extremely profitable, as any

The slave trade was not controlled by any state or government. It was a purely economic enterprise, organised and financed by the free market according to the laws of supply and demand. Private slave-trading companies sold shares on the Amsterdam, London and Paris stock exchanges. Middle-class Europeans looking for a good investment bought these shares. Relying on this money, the companies bought ships, hired sailors and soldiers, purchased slaves in Africa, and transported them to America. There they sold the slaves to the plantation owners, using the proceeds to purchase plantation products such as sugar, cocoa, coffee, tobacco, cotton and rum. They returned to Europe, sold the sugar and cotton for a good price, and then sailed to Africa to begin another round. The shareholders were very pleased with this arrangement. Throughout the eighteenth century the yield on slave-trade investments was about 6 per cent a year – they were extremely profitable, as any modern consultant would be quick to admit.

suggest funding college, or at least the first step of college, with an Educational Savings Account (ESA), funded in a growth-stock mutual fund. The Educational Savings Account, nicknamed the Education IRA, grows tax-free when used for higher education. If you invest $2,000 a year from birth to age eighteen in prepaid tuition, that would purchase about $72,000 in tuition, but through an ESA in mutual funds averaging 12 percent, you would have $126,000 tax-free. The ESA currently allows you to invest $2,000 per year, per child, if your household income is under $220,000 per year. If you start investing early, your child can go to virtually any college if you save $166.67 per month ($2,000/year). For most of you, Baby Step Five is handled if you start an ESA fully funded and your child is under eight. If your children are older, or you have aspirations of expensive schools, graduate school, or PhD programs that you pay for, you will have to save more than the ESA will allow. I would still start with the ESA if the income limits don’t keep you out. Start with the ESA because you can invest it anywhere, in any fund or any mix of funds, and change it at will. It is the most flexible, and you have the most control.

The slave trade was not controlled by any state or government. It was a purely economic enterprise, organised and financed by the free market according to the laws of supply and demand. Private slave-trading companies sold shares on the Amsterdam, London and Paris stock exchanges. Middle-class Europeans looking for a good investment bought these shares. Relying on this money, the companies bought ships, hired sailors and soldiers, purchased slaves in Africa, and transported them to America. There they sold the slaves to the plantation owners, using the proceeds to purchase plantation products such as sugar, cocoa, coffee, tobacco, cotton and rum. They returned to Europe, sold the sugar and cotton for a good price, and then sailed to Africa to begin another round. The shareholders were very pleased with this arrangement. Throughout the eighteenth century the yield on slave-trade investments was about 6 per cent a year – they were extremely profitable, as any modern consultant would be quick to admit. This is the fly in the ointment of free-market capitalism. It cannot ensure that profits are gained in a fair way, or distributed in a fair manner. On the contrary, the craving to increase profits and production blinds people to anything that might stand in the way.

A few years ago my friend Jon Brooks supplied this great illustration of skewed interpretation at work. Here’s how investors react to events when they’re feeling good about life (which usually means the market has been rising): Strong data: economy strengthening—stocks rally Weak data: Fed likely to ease—stocks rally Data as expected: low volatility—stocks rally Banks make $4 billion: business conditions favorable—stocks rally Banks lose $4 billion: bad news out of the way—stocks rally Oil spikes: growing global economy contributing to demand—stocks rally Oil drops: more purchasing power for the consumer—stocks rally Dollar plunges: great for exporters—stocks rally Dollar strengthens: great for companies that buy from abroad—stocks rally Inflation spikes: will cause assets to appreciate—stocks rally Inflation drops: improves quality of earnings—stocks rally Of course, the same behavior also applies in the opposite direction. When psychology is negative and markets have been falling for a while, everything is capable of being interpreted negatively. Strong economic data is seen as likely to make the Fed withdraw stimulus by raising interest rates, and weak data is taken to mean companies will have trouble meeting earnings forecasts. In other words, it’s not the data or events; it’s the interpretation. And that fluctuates with swings in psychology.

When we talk about finding or having found our soul mate (if we do), we do not believe ourselves to be immersed in the capitalist economy. But this is an even more important terrain for capitalism than the convenience store where we buy a soda and candy bar or the stock exchange floor where companies are financed. The idea of the soul mate plays a crucial role in the promulgation of consumption. If I believe that a perfect commodity exists in the romantic field, this changes my relationship to all commodities. Commodities become more attractive insofar as each one stands in for the perfect partner. Though a hammer at the hardware store most likely cannot function as my soul mate, I will find more pleasure in purchasing it with the idea of an ideal commodity informing the purchase, and this is what the soul mate provides. That is to say, the idea of the soul mate underwrites all consumption within the capitalist universe. The soul mate is the commodity in the form of the subject’s complement. This is why the idea of the soul mate has such importance for capitalism. The subject experiences itself as lacking whenever it desires, and no object can fill this lack. But the promise of the soul mate is the promise of completion, an object that would complement the lacking subject perfectly and thereby ameliorate its lack. No such complement exists outside of ideological fantasies, but capitalism requires subjects who invest themselves in such fantasies.

Decouplers often trip up on this step in two ways. First, they are overly generic in articulating the CVC. When mapping the process of buying a car, auto executives tend to describe it as: feel the need to buy car > become aware of a car brand > develop an interest in the brand > visit the dealer > purchase the car. This is a start, but it is not specific enough. Decouplers must ask: When do people actually need a new car? How exactly do people become aware of car brands? How do people become interested in a make or model? And so on. The generic process of awareness, interest, desire, and purchase isn’t specific enough to help. Decouplers also flounder by failing to identify all the relevant stages in the value chain. For the car-buying process, a better description of the CVC might be: become aware that your car lease will expire in one month > feel the need to purchase a new car > develop a heightened interest in car ads > visit car manufacturers’ websites > create a set of two or three brands of interest > visit third-party auto websites > compare options of cars in the same category > choose a model > shop online for the best price > visit the nearest dealer to see if they have the model in stock > see if they can beat the best online price > test-drive the cars > decide about financing, warranty, and other add-ons > negotiate a final price > sign the contract > pick up the car > use it > wait for the lease to expire again. With this far more detailed CVC, we can fully appreciate the complexity of the car-buying

Blues Elizabeth Alexander, 1962 I am lazy, the laziest girl in the world. I sleep during the day when I want to, ‘til my face is creased and swollen, ‘til my lips are dry and hot. I eat as I please: cookies and milk after lunch, butter and sour cream on my baked potato, foods that slothful people eat, that turn yellow and opaque beneath the skin. Sometimes come dinnertime Sunday I am still in my nightgown, the one with the lace trim listing because I have not mended it. Many days I do not exercise, only consider it, then rub my curdy belly and lie down. Even my poems are lazy. I use syllabics instead of iambs, prefer slant to the gong of full rhyme, write briefly while others go for pages. And yesterday, for example, I did not work at all! I got in my car and I drove to factory outlet stores, purchased stockings and panties and socks with my father’s money. To think, in childhood I missed only one day of school per year. I went to ballet class four days a week at four-forty-five and on Saturdays, beginning always with plie, ending with curtsy. To think, I knew only industry, the industry of my race and of immigrants, the radio tuned always to the station that said, Line up your summer job months in advance. Work hard and do not shame your family, who worked hard to give you what you have. There is no sin but sloth. Burn to a wick and keep moving. I avoided sleep for years, up at night replaying evening news stories about nearby jailbreaks, fat people who ate fried chicken and woke up dead. In sleep I am looking for poems in the shape of open V’s of birds flying in formation, or open arms saying, I forgive you, all.

The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” George Bernard Shaw On a cool fall evening in 2008, four students set out to revolutionize an industry. Buried in loans, they had lost and broken eyeglasses and were outraged at how much it cost to replace them. One of them had been wearing the same damaged pair for five years: He was using a paper clip to bind the frames together. Even after his prescription changed twice, he refused to pay for pricey new lenses. Luxottica, the 800-pound gorilla of the industry, controlled more than 80 percent of the eyewear market. To make glasses more affordable, the students would need to topple a giant. Having recently watched Zappos transform footwear by selling shoes online, they wondered if they could do the same with eyewear. When they casually mentioned their idea to friends, time and again they were blasted with scorching criticism. No one would ever buy glasses over the internet, their friends insisted. People had to try them on first. Sure, Zappos had pulled the concept off with shoes, but there was a reason it hadn’t happened with eyewear. “If this were a good idea,” they heard repeatedly, “someone would have done it already.” None of the students had a background in e-commerce and technology, let alone in retail, fashion, or apparel. Despite being told their idea was crazy, they walked away from lucrative job offers to start a company. They would sell eyeglasses that normally cost $500 in a store for $95 online, donating a pair to someone in the developing world with every purchase. The business depended on a functioning website. Without one, it would be impossible for customers to view or buy their products. After scrambling to pull a website together, they finally managed to get it online at 4 A.M. on the day before the launch in February 2010. They called the company Warby Parker, combining the names of two characters created by the novelist Jack Kerouac, who inspired them to break free from the shackles of social pressure and embark on their adventure. They admired his rebellious spirit, infusing it into their culture. And it paid off. The students expected to sell a pair or two of glasses per day. But when GQ called them “the Netflix of eyewear,” they hit their target for the entire first year in less than a month, selling out so fast that they had to put twenty thousand customers on a waiting list. It took them nine months to stock enough inventory to meet the demand. Fast forward to 2015, when Fast Company released a list of the world’s most innovative companies. Warby Parker didn’t just make the list—they came in first. The three previous winners were creative giants Google, Nike, and Apple, all with over fifty thousand employees. Warby Parker’s scrappy startup, a new kid on the block, had a staff of just five hundred. In the span of five years, the four friends built one of the most fashionable brands on the planet and donated over a million pairs of glasses to people in need. The company cleared $100 million in annual revenues and was valued at over $1 billion. Back in 2009, one of the founders pitched the company to me, offering me the chance to invest in Warby Parker. I declined. It was the worst financial decision I’ve ever made, and I needed to understand where I went wrong.

he purchased Reliance at ₹ 800, and put “Stop Loss” at 790. However the stock crashed so badly that it reached 780 without touching 790! So, he was forced to sell at ₹780 and book loss of ₹ 20 per share

Gold is for hoarders who expect to trade glittering bars for stale bread after a financial Armageddon. Or it’s for people trying to “time” gold’s movements by purchasing it on an upward bounce, with the hopes of selling before it drops. That’s not investing. It’s speculating. Gold has jumped up and down like an excited kid on a pogo stick for more than 200 years. But after inflation, it hasn’t gained any long-term elevation. I prefer the Tropical Beach approach: Buy assets that have proven to run circles around gold (rebalanced stock and bond indexes would do). Lay in a hammock on a tropical beach. Soak in the sun and patiently enjoy the long-term profits.

What does this mean in practical terms? Let’s keep things simple, ignore private equity and commercial real estate, and focus just on the broad stock and bond market. You might buy three funds: an index fund offering exposure to the entire U.S. stock market, an index fund that will give you exposure to both developed foreign stock markets and emerging stock markets, and an index fund that owns the broad U.S. bond market. Suppose we were aiming to build a classic balanced portfolio, with 60 percent in stocks and 40 percent in bonds. Here are some possible investment mixes using index funds offered by major financial firms:     40 percent Fidelity Spartan Total Market Index Fund, 20 percent Fidelity Spartan Global ex U.S. Index Fund and 40 percent Fidelity Spartan U.S. Bond Index Fund. You can purchase these mutual funds directly from Fidelity Investments (Fidelity.com).     40 percent Vanguard Total Stock Market Index Fund, 20 percent Vanguard FTSE All-World ex-US Index Fund and 40 percent Vanguard Total Bond Market Index Fund. You can buy these mutual funds directly from Vanguard Group (Vanguard.com).     40 percent Vanguard Total Stock Market ETF, 20 percent Vanguard FTSE All-World ex-US ETF and 40 percent Vanguard Total Bond Market ETF. You can purchase these ETFs, or exchange-traded funds, through a discount or full-service brokerage firm. You can learn more about each of the funds at Vanguard.com.     40 percent iShares Core S&P Total U.S. Stock Market ETF, 20 percent iShares Core MSCI Total International Stock ETF and 40 percent iShares Core U.S. Aggregate Bond ETF. You can buy these ETFs through a brokerage account and find fund details at iShares.com.     40 percent SPDR Russell 3000 ETF, 20 percent SPDR MSCI ACWI ex-US ETF and 40 percent SPDR Barclays Aggregate Bond ETF. You can invest in these ETFs through a brokerage account and learn more at SPDRs.com.     40 percent Schwab Total Stock Market Index Fund, 20 percent Schwab International Index Fund and 40 percent Schwab Total Bond Market Fund. You can buy these mutual funds directly from Charles Schwab (Schwab.com). The good news: Schwab’s funds have a minimum initial investment of just $100. The bad news: Unlike the other foreign stock funds listed here, Schwab’s international index fund focuses solely on developed foreign markets. Those who want exposure to emerging markets might take a fifth of the money allocated to the international fund—equal to 4 percent of the entire portfolio—and invest it in an emerging markets stock index fund. One option: Schwab has an ETF that focuses on emerging markets.

present counties of Clare, Galway, and Mayo, whence came the family name, in a contraction of Connaught-Galway to Connelly, Conly, Cory, Coddy, Coidy, and, finally, "Cod " Y• All this almost makes sense. However, it is only one of the legends Mrs. Wetmore offers up as fact in her book, despite her disclaimer in the preface that "embarrassed with riches of fact, I have had no thought of fiction." For the truth about William Cody's lineage, we must turn to Don Russell's authoritative biography, The Lives and Legends of Buffalo Bill. Russell's research was thorough and exemplary; the notes for his book in the Buffalo Bill Historical Center in Cody, Wyoming, are proof of that. According to Russell, "Buffalo Bill's most remote definitely known ancestor was one Philip, whose surname appears in various surviving records as Legody, Lagody, McCody, Mocody, Micody ... as well as Codie, Gody, Coady, and Cody." Russell traces Philip to Philippe Le Caude of the Isle of Jersey, who married Marthe Le Brocq of Guernsey in the parish of St. Brelades, Isle of Jersey, on September 15, 1692. Although the family names are French, the Channel Islands have been British possessions since the Middle Ages. No Irish or Spanish in sight; just good English stock. The Cody Family Association's book The Descendants of Philip and Martha Cody carries the line down to the present day. Buffalo Bill was sixth in descent from Philip. Philip and Martha purchased a home in Beverly, Massachusetts, in 1698, and occupied it for twenty-five years, farming six acres of adjacent land. In 1720 Philip bought land in Hopkinton, Massachusetts, and he and his family moved there, probably in 1722 or 1723. When he died in 1743, his will was probated under the name of Coady. The spelling of the family name had stabilized by the time Bill's father, Isaac, the son of Philip and Lydia Martin Cody, was born on September 15, 1811, in Toronto Township, Peel County, Upper Canada. It is Lydia Martin Cody who may have been responsible for the report of an Irish king in the family genealogy; she boasted that her ancestors were of Irish royal birth. When Isaac Cody was seventeen years old, his family moved to a farm near Cleveland, Ohio, in the vicinity of what is today Eighty-third Street and Euclid Avenue. That move would ultimately embroil William Cody in a lawsuit many years later, one of several suits he was destined to lose. Six years after arriving in Ohio, Isaac married Martha Miranda

For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.

Thus, purchasing a fund holding all the stocks in a broad-based index will produce a portfolio that can be expected to do as well as any managed by professional security analysts.

Businesses are nothing more than purchasing stocks, and providing loans is nothing more than purchasing bonds.

Many complex elements contributed to the Great Depression of 1929. However, most economists believe that the two main causes of the Depression were the immensely uneven distribution of wealth during the previous decade and the extensive speculation in stock that took place in the latter half of the decade. The decade preceding the Depression was a time of tremendous prosperity and became known as the “Roaring Twenties.” However, prosperity was not for everyone. The number of wealthy people in the country was less than a tenth of a percent of the total population yet they controlled most of the money in the country. In a well-functioning economy, demand must equal supply. But in 1929 wealth was so unevenly distributed that the supply of products far exceeded the demand for them. People may have wanted the products at the time but they couldn’t afford them. If supplies keep building and demand lessens, the economy can collapse. One way to balance the equation is to allow people to buy products over time. By the end of the Roaring Twenties, over 60 percent of all automobiles and 80 percent of all radios had been purchased on credit. With this new influx of money into the market, the economy was booming at the end of the 1920s. Stock speculation became rampant. Profits as high as 3,400 percent could be made in less than a year and people could buy on margin. In other words, they only had to put down 10 percent cash when buying a stock. Because of this, everyone was buying stocks. The poor were equal players with the rich. This buying spree pushed the market to new highs. In 1928 alone the Dow Jones Industrial Average rose from 191 to 300. There were warning signs as minor recessions occurred in the spring of 1929. Investors became nervous. In October people started selling their shares of stock. As the market started dropping, more and more people sold stock, margins were called, and by October 1929 there was panic selling. Stock prices dropped so fast that many rich people became poor in a matter of hours.

a stock does not rise after you buy, exit it at a 5% loss from your purchase price. No

stock does not rise after you buy, exit it at a 5% loss from your purchase price. No more. Think

Gaps can be caused by news of a nature that the market or the stock did not anticipate, or a large sale or purchase of the stock by an institution or another large investor. Gaps

some items are difficult for the consumer to stock for very long. Depending on food habits, bread, milk, fruit, salad, vegetables, fish and meat may demand purchase several times a week, and so an out-of-stock can be hugely inconvenient and irritating.

she was a little on the loony side. She was a compulsive worrier, overprotective of her son to the nth degree, and should probably purchase stock in hand sanitizer companies for how often she used it.

Chapter 51 In Atlanta, the day had gone mostly as Elliott had expected. The stock market crash had rattled everyone. It was a cloud that hung over the euphoria of Black Friday. The most difficult part of his plan had been convincing the other five families to pool their money with his for the purchases, which together added up to hundreds of thousands of dollars. They had begun by renting two twenty-six-foot U-Haul trucks. They drove them to Costco and filled them with survival necessities. It was mostly food; Elliott planned to be near a freshwater source if worst came to worst. Next, they purchased two high-end RVs. The price was exorbitant, but they carried a thirty-day money-back guarantee, and they only had to make a down payment—the remainder was financed. Elliott had assured his neighbors that within thirty days, they would either be incredibly glad to have the two homes on wheels—or they’d have their money back. Now he sat in his study, watching the news, waiting for the event he believed would come. He hoped he was wrong. DAY 7 900,000,000 Infected 180,000 Dead

CBS spent much of the 1960s and 1970s taking the enormous cash flow generated by its network and broadcast operations and funding an aggressive acquisition program that led it into entirely new fields, including the purchase of a toy business and the New York Yankees baseball team. CBS issued stock to fund some of these acquisitions, built a landmark office building in midtown Manhattan at enormous expense, developed a corporate structure with forty-two presidents and vice presidents, and generally displayed what Buffett’s partner, Charlie Munger, calls “a prosperity-blinded indifference to unnecessary costs.”1

In observing the behavior of thousands of shoppers, letting shoppers group themselves according to behavior, we have identified three primary types of shoppers, as follows:2 • Quick: As noted previously, the number of products purchased most commonly on a shopping trip is one. These shoppers spend a short time in a small area, with a relatively slow walking speed but high spending speed. A third of all trips to the supermarket result in only one or two items being purchased, with fully half of all trips consisting of five or fewer items purchased. • Fill-in: These shoppers visit about a fifth of the store, have a slightly faster—but still slow—walking speed and an average spending speed. • Stock-up: These shoppers cover a larger area, walk more quickly, but have a lower spending speed.

Email 1 : A special announcement to introduce the product. Use your best hook or angle on what the product does for the prospect and give them a link to the purchase page. If you’re doing some kind of discount or special offer (such as free shipping), announce that in this email as well. Email 2 : I call this the “what people are saying” or social proof email. People want to know that they're not the only ones buying the product, so put reviews or testimonials for your product in the email and say, “Look what Mary said when she got the product!” Email 3 : The last chance email. Throw in some scarcity. Tell your prospect that the special price or free shipping expires tonight, you’re running out of stock, or whatever type of scarcity you are using. When I do a promotion, I offer the discount with a time limit of around 72 hours.

Evade purchasing stocks which purely look like a bargain.

map out all the activities in that group’s typical customer value chain. Decouplers often trip up on this step in two ways. First, they are overly generic in articulating the CVC. When mapping the process of buying a car, auto executives tend to describe it as: feel the need to buy car > become aware of a car brand > develop an interest in the brand > visit the dealer > purchase the car. This is a start, but it is not specific enough. Decouplers must ask: When do people actually need a new car? How exactly do people become aware of car brands? How do people become interested in a make or model? And so on. The generic process of awareness, interest, desire, and purchase isn’t specific enough to help. Decouplers also flounder by failing to identify all the relevant stages in the value chain. For the car-buying process, a better description of the CVC might be: become aware that your car lease will expire in one month > feel the need to purchase a new car > develop a heightened interest in car ads > visit car manufacturers’ websites > create a set of two or three brands of interest > visit third-party auto websites > compare options of cars in the same category > choose a model > shop online for the best price > visit the nearest dealer to see if they have the model in stock > see if they can beat the best online price > test-drive the cars > decide about financing, warranty, and other add-ons > negotiate a final price > sign the contract > pick up the car > use it > wait for the lease to expire again. With this far more detailed CVC, we can fully appreciate the complexity of the car-buying

Here are a few different types of emails you can send: Common FAQs – An email that answers repeat questions you get from readers and subscribers Affiliate case study – An email that details the results from taking a course or using a tool that you’re an affiliate for Teaser to an existing post – An email that links to pillar or cornerstone pieces on your blog Tools and resources – An email that shares your favorite tool collection The Start Here – An email that links to your most important resources Break the myths – An email that lays out myths that your subscribers may think are true Behind the scenes – An email that gives an insiders’ peek into what’s going on with your business Personal story – An email that gives an insiders’ peek into your struggles or backstory One-click survey – An email that asks a simple question to segment subscribers or allows them to choose their own email journey Survey or How can I help you? – An email asking for responses or providing an offer to help Postpurchase welcome email – An email sent immediately after purchase to buyers of your offer Unexpected incentive email – A simple cheat sheet, guide, or PDF that subscribers were not expecting Favorite thing – A collection of your favorite books/blogs/stock photo sites, etc. I have used every one of these emails in my email marketing mix. Doing so breaks up the monotony of sending the same style of email each week, and each of these emails feeds your marketing goals differently as well.

After twelve months of going nowhere, the investment committee loses patience and takes over the deal more directly. Organic is sold to a special-purpose acquisition company (or SPAC) listed on local stock exchanges. A SPAC is a cash box with a blank check raised from investors to buy a business within a set timeframe as determined by the executives who run the vehicle. Often, as the vehicle is publicly listed, a SPAC can strike a deal at a higher purchase price than a private equity firm would be willing to pay. Its investors will accept a lower return than they would from a private equity fund, often because the investment is marketed to them as a safer or more straightforward bet. In this case, the SPAC is run by a former senior executive of a French food retail chain and a major hedge fund seeking to expand into the private equity industry. Their joint sector and finance experience is convincing enough for the SPAC’s investors to agree that the transaction is likely to be worthwhile. The

The careful investor, when he hears such tales, should ask a key question: At what price is this company a good buy? What price is too high? Suppose, after doing your analysis of the company’s financial statements, management, business model, and prospects, you conclude that it’s worth buying at $40 a share, at which price you expect not only a satisfactory excess risk-adjusted return but have a margin of safety in case your analysis is flawed. Suppose you also conclude that the expected return at $80 is substandard, so the stock is likely overpriced. Typically you’ll avoid investing in stocks when they are trading above your buy price but, if you follow many companies carefully, from time to time some will be attractive purchases. The range between your “buy” price and the “likely overpriced” level, in this case from $40 to $80, is likely to be narrower for better, more experienced investors, enabling them to participate in more situations and with greater confidence.

To purchase stocks is akin to voting for President Trump, as both are dangerous entities.

consumer discretionary stocks include products that consumers might want, but don’t necessarily need (like a new car or house). They can defer those purchases until things start to get better. They can’t defer food purchases.

Caterina's townhouse sat a couple of blocks from a well-stocked grocery store. At about ten each morning, I bundled up, walked down, and purchased whatever ingredients amused me. Back in Caterina's kitchen, I baked chocolate babkas with quinoa flour, tartlets with cream and lychee fruit, roasted vegetables with poached eggs on top.

America built roads, schools, and factories. Electrification of those factories and modern assembly-line methods created a boom in manufacturing production. Capital became plentiful as banks loosened the reins on credit to keep up with the growth. The stock market shot up. New money in the marketplace, coupled with a white-hot economy, spurred innovation and consumer spending. Wages of working Americans grew, and the onset of installment buying allowed them to purchase more for their families. The 1920s marked a consumer goods revolution—electric toasters, irons, phonographs, radios, plumbing fixtures, and automobiles.

Look at stocks as part ownership of a business. 2. Look at Mr. Market—volatile stock price fluctuations—as your friend rather than your enemy. View risk as the possibility of permanent loss of purchasing power, and uncertainty as the unpredictability regarding the degree of variability in the possible range of outcomes. 3. Remember the three most important words in investing: “margin of safety.” 4. Evaluate any news item or event only in terms of its impact on (a) future interest rates and (b) the intrinsic value of the business, which is the discounted value of the cash that can be taken out during its remaining life, adjusted for the uncertainty around receiving those cash flows. 5. Think in terms of opportunity costs when evaluating new ideas and keep a very high hurdle rate for incoming investments. Be unreasonable. When you look at a business and get a strong desire from within saying, “I wish I owned this business,” that is the kind of business in which you should be investing. A great investment idea doesn’t need hours to analyze. More often than not, it is love at first sight. 6. Think probabilistically rather than deterministically, because the future is never certain and it is really a set of branching probability streams. At the same time, avoid the risk of ruin, when making decisions, by focusing on consequences rather than just on raw probabilities in isolation. Some risks are just not worth taking, whatever the potential upside may be. 7. Never underestimate the power of incentives in any given situation. 8. When making decisions, involve both the left side of your brain (logic, analysis, and math) and the right side (intuition, creativity, and emotions). 9. Engage in visual thinking, which helps us to better understand complex information, organize our thoughts, and improve our ability to think and communicate. 10. Invert, always invert. You can avoid a lot of pain by visualizing your life after you have lost a lot of money trading or speculating using derivatives or leverage. If the visuals unnerve you, don’t do anything that could get you remotely close to reaching such a situation. 11. Vicariously learn from others throughout life. Embrace everlasting humility to succeed in this endeavor. 12. Embrace the power of long-term compounding. All the great things in life come from compound interest.

One rather celebrated butler in a Fifth Avenue house that stocked Duveens put in so much overtime that, before he retired, his emoluments from Duveen totalled over a hundred thousand dollars. The gratitude of servants was a fine silt from which burgeoned the flower of remembrance. They developed a feeling that it was only fair to transmit to the generous nobleman any information that might interest him: what rival dealers (who had no comparable sense of the value of a servant’s time) had the effrontery to offer works of art to their masters, what purchases the masters were considering, what was said about Duveen’s emissaries on the walls – in short, all the minutiae of relevant gossip that in the art world are as pregnant with significance as the secret memoranda exchanged by chancelleries.

But few gain sufficient experience in Wall Street to command sucess until they reach that period of life in which they have one foot in the grave. When this time comes these old veterans of the Street usually spend long intervals of repose at their comfortable homes, and in times of panic, which recur sometimes oftener than once a year, these old fellows will be seen in Wall Street, hobbling down on their canes to their brokers' office. Then they always buy good stocks to the extent of their bank balances, which have been permitted to accumulate for just such an emergency. The panic usually rages until enough of these cash purchases of stock is made to afford a big "rake in." When the panic has spent its force, these old fellows, who have been resting judiciously on their oars in expectation of the inevitable event, which usually returns with the regularity of the seasons, quickly realize, deposit their profits with their bankers, or the overplus thereof, after purchasing more real estate that is on the upgrade, for permanent investment, and retire for another season to the quietude of their splendid homes and the bosoms of their happy families. If young men had only the patience to watch the speculative signs of the times, as manifested in the periodical egress of these old prophetic speculators from their shells of security, they would make more money at these intervals than by following up the slippery "tips" of the professional "pointers" of the Stock Exchange all the year round, and they would feel no necessity for hanging at the coat tails, around the hotels, of those specious frauds, who pretend to be deep in the councils of the big operations and of all the new "pools" in process of formation. I say to the young speculators, therefore, watch the ominous visits to the Street of these old men. They are as certain to be seen on the eve of a panic as spiders creeping stealthily and noiselessly from their cobwebs just before rain.

All things considered, the third best investment I ever made was the purchase of my home, though I would have made far more money had I instead rented and used the purchase money to buy stocks.

The GNP lumps together goods and bads. (If there are more car accidents and medical bills and repair bills, the GNP goes up.) It counts only marketed goods and services. (If all parents hired people to bring up their children, the GNP would go up.) It does not reflect distributional equity. (An expensive second home for a rich family makes the GNP go up more than an inexpensive basic home for a poor family.) It measures effort rather than achievement, gross production and consumption rather than efficiency. New light bulbs that give the same light with one-eighth the electricity and that last ten times as long make the GNP go down. GNP is a measure of throughput—flows of stuff made and purchased in a year—rather than capital stocks, the houses and cars and computers and stereos that are the source of real wealth and real pleasure.

reciprocal purchase agreements” to generate more than one-fifth of its revenues. These agreements, also referred to commonly as “swaps,” were the ultimate addiction of many of the companies that flamed out so spectacularly in 2001 and 2002. Basically, a swap was an agreement by two companies to purchase goods or services from each other at the same time, inflating both companies’ revenues without any true economic purpose being fulfilled.

Union Street Railway was a New Bedford, Massachusetts-based bus company. With the equity trading below the net cash on the company’s balance sheet, Union Street was a classic net-net when Buffett bought the stock. This was a small, thinly traded company with a market capitalization below $1 million. The small float meant acquiring stock required a bit of work and persistence by the young, enterprising investor. Like the other stocks discussed so far, it was cheap. But in contrast to the previous investments discussed in this book, this one was actually losing money at the time of Buffett’s purchase. Yet this stock would be a huge winner for Buffett, yielding him a dollar profit worth more than 4.5x the average household yearly income at the time. After accumulating a meaningful stake in the company, Buffett took a trip to Massachusetts to meet with the company’s president. While he did not run a proxy contest or take aggressive action to prompt a capital return, the company paid a substantial dividend shortly after his visit.109 Union Street Railway was an early lesson in how positive changes in capital allocation can lead to windfall profits.

The balance sheet told a different story. Selling for $13.38 per share at the end of 1954—an $18.8 million market capitalization—P&R traded close to its net current asset value of $9.16 per share, a figure that included significant excess inventory. While this alone was not enough to make the stock cheap, P&R also had an off-balance-sheet asset known as culm banks, a waste material accumulated from anthracite mining which was thought to have value as a fuel source. Buffett believed this asset could be worth around $8 per share.150 The net current asset value and the culm banks combined were worth $17 a share, enough to give Buffett confidence that the stock was cheap. But, as Table 2 shows, the company also had substantial property, plant, and equipment. These fixed assets were almost certainly worth less than their carrying value, as the industry had deteriorated since the company last valued them when it emerged from bankruptcy in 1945. While it wasn’t clear what they were worth, they were certainly worth something. Finally, and ultimately most importantly, Ben Graham was on P&R’s board of directors, becoming a member after purchasing the stock in 1952. Buffett, who had discovered the stock on his own, would join Graham’s firm in 1954. While Graham had not taken any significant action as a board member by then, Buffett sensed that his professor, mentor, and now boss would eventually make something happen. As he later stated, “I was just a peon sitting in the outer office… I was not in the inner circle, but I was terribly interested, knowing something was going on.

So not only were the liabilities from Allied’s bankruptcy becoming defined, but the core business was not showing any signs of stress from the scandal. That left valuation. At his $40 per share purchase price, and in contrast to most of the stocks discussed in this book, American Express did not sell for an obvious bargain price. With a $178.4 million market capitalization and $124.1 million enterprise value, the stock sold for 15.8x 1963 earnings, 7.8x EV/1963 EBIT, and 2.3x P/TB. It didn’t look that cheap, and this valuation didn’t include an adjustment for the cost of the salad oil settlement.270

Discount brokerage accounts are low-cost online accounts offered by firms like E*TRADE, Charles Schwab, and Fidelity. These accounts allow do-it-yourself investors to purchase a large variety of common stocks, mutual funds, and exchange-traded funds (ETFs),

An old Wall Street joke gets close to our experience: Customer: Thanks for putting me in XYZ stock at 5. I hear it’s up to 18. Broker: Yes, and that’s just the beginning. In fact, the company is doing so well now, that it’s an even better buy at 18 than it was when you made your purchase. Customer: Damn, I knew I should have waited.

Bizarre and Surprising Insights—Consumer Behavior Insight Organization Suggested Explanation7 Guys literally drool over sports cars. Male college student subjects produce measurably more saliva when presented with images of sports cars or money. Northwestern University Kellogg School of Management Consumer impulses are physiological cousins of hunger. If you buy diapers, you are more likely to also buy beer. A pharmacy chain found this across 90 days of evening shopping across dozens of outlets (urban myth to some, but based on reported results). Osco Drug Daddy needs a beer. Dolls and candy bars. Sixty percent of customers who buy a Barbie doll buy one of three types of candy bars. Walmart Kids come along for errands. Pop-Tarts before a hurricane. Prehurricane, Strawberry Pop-Tart sales increased about sevenfold. Walmart In preparation before an act of nature, people stock up on comfort or nonperishable foods. Staplers reveal hires. The purchase of a stapler often accompanies the purchase of paper, waste baskets, scissors, paper clips, folders, and so on. A large retailer Stapler purchases are often a part of a complete office kit for a new employee. Higher crime, more Uber rides. In San Francisco, the areas with the most prostitution, alcohol, theft, and burglary are most positively correlated with Uber trips. Uber “We hypothesized that crime should be a proxy for nonresidential population.…Uber riders are not causing more crime. Right, guys?” Mac users book more expensive hotels. Orbitz users on an Apple Mac spend up to 30 percent more than Windows users when booking a hotel reservation. Orbitz applies this insight, altering displayed options according to your operating system. Orbitz Macs are often more expensive than Windows computers, so Mac users may on average have greater financial resources. Your inclination to buy varies by time of day. For retail websites, the peak is 8:00 PM; for dating, late at night; for finance, around 1:00 PM; for travel, just after 10:00 AM. This is not the amount of website traffic, but the propensity to buy of those who are already on the website. Survey of websites The impetus to complete certain kinds of transactions is higher during certain times of day. Your e-mail address reveals your level of commitment. Customers who register for a free account with an Earthlink.com e-mail address are almost five times more likely to convert to a paid, premium-level membership than those with a Hotmail.com e-mail address. An online dating website Disclosing permanent or primary e-mail accounts reveals a longer-term intention. Banner ads affect you more than you think. Although you may feel you've learned to ignore them, people who see a merchant's banner ad are 61 percent more likely to subsequently perform a related search, and this drives a 249 percent increase in clicks on the merchant's paid textual ads in the search results. Yahoo! Advertising exerts a subconscious effect. Companies win by not prompting customers to think. Contacting actively engaged customers can backfire—direct mailing financial service customers who have already opened several accounts decreases the chances they will open more accounts (more details in Chapter 7).

An Introduction to CFD Trading Increase, commit, and individuals trying to trade systems and their cash in different areas are usually trying to find new strategies. Like several good buyer, you won’t be joining the group, instead you had want in order to change lives begin or to create one. Stocks trading is really 80s within the sensation that perhaps young kids today understand how it operates, and have the ability to survive without any formal education. If you should be looking for a new company shift, you should provide a try to this new venture. First what’s a CFD? CFD stands for contract for difference. It’s thought as a small business contract an entrepreneur and by an expense business. If the contract expires, both parties can trade notes concerning the differences between the original and final price indices of particular monetary things like shares of items and futures. This is exactly what CFD Trading is focused on. The one edge that traders have within this economic contract is the fact that they get to purchase these factors at lower costs despite the fact that it includes nonvoting stocks where the trader can’t vote on all aspects of the company as opposed to what stockholders are blessed to do. Another thing is the fact that a CFD does not hold taxes on files even if these aspects are acquired in large amounts. In simple terms, it’s a in which a derivative asset is founded on an underlying asset’s cost between two entities that transactions the differences. These parties will need to pay the differences required to eachother. The way in which CFD Trading works is that among the entities gives the difference before contract ends included to the other. Just about like what occurs in spreadbetting, the trader continues the opposite end-of the deal with investment institution or CFD service, where the trader anticipates which cost will increase and having three selections to take whether to buy, to slide or to sell the component required. Another similarity with spreadbetting is the fact that you can find no tax tasks since CFD’s don’t involve buying of assets to become settled. It just requires the activity of the fee. Since the investor is just needed to spot a minor amount on these things, that are also called edges, the earnings and in addition losses will soon be on the basis of the money set in. In other words, a CFD is good for the entrepreneur since it gives him the chance of owning main assets without so much problem. Does It Work A good example of that is to ingest a share worth $20 and the entrepreneur buys 100 of these. He will be cost $2,000 by this exchange. Employing a stockbroker will demand the entrepreneur to shell 50% of this amount out. That is $1,000. A meager initial cashout is needed which amounts as much as only $100, should you evaluate that to an expenditure finished with a CFD representative. However, allow it to be regarded that whenever an investor enters a deal of difference, the cost place usually begins in a loss. Which damage is definitely equal to the spread. Which means the spread is at $8 along with if you come into a deal, the underlying resource must generate $8 merely to break even. Let us say if the actual resource reaches a quote cost of $ 20, then the CFD price will be a few cents less than that since the dealer will have to escape at that point. So as opposed to increasing your money to $40, he will must settle for several dollars. Nevertheless not really a terrible package to get a purchase with less trouble.

Total Cost Analysis When the purchasing staff considers switching to a new supplier or consolidating its purchases with an existing one, it cannot evaluate the supplier based solely on its quoted price. Instead, it must also consider the total acquisition cost, which can in some cases exceed a product’s initial price. The total acquisition cost includes these items: • Material. The list price of the item being bought, less any rebates or discounts. • Freight. The cost of shipping from the supplier to the company. • Packaging. The company may specify special packaging, such as for quantities that differ from the supplier’s standards and for which the supplier charges an extra fee. • Tooling. If the supplier had to acquire special tooling in order to manufacture parts for the company, such as an injection mold, then it will charge through this cost, either as a lump sum or amortized over some predetermined unit volume. • Setup. If the setup for a production run is unusually lengthy or involves scrap, then the supplier may charge through the cost of the setup. • Warranty. If the product being purchased is to be retained by the company for a lengthy period of time, it may have to buy a warranty extension from the supplier. • Inventory. If there are long delays between when a company orders goods and when it receives them, then it must maintain a safety stock on hand to guard against stock-out conditions and support the cost of funds needed to maintain this stock. • Payment terms. If the supplier insists on rapid payment terms and the company’s own customers have longer payment terms, then the company must support the cost of funds for the period between when it pays the supplier and it is paid by its customers. • Currency used. If supplier payments are to be made in a different currency from the company’s home currency, then it must pay for a foreign exchange transaction and may also need to pay for a hedge, to guard against any unfavorable changes in the exchange rate prior to the scheduled payment date. These costs are only the ones directly associated with a product. In addition, there may be overhead costs related to dealing with a specific supplier (see “Sourcing Distance” later in the chapter), which can be allocated to all products purchased from that supplier.

write to Securities Research Company, 27 Wareham Street, #401, Boston, MA 02118, and purchase one of the company’s long-term wall charts. Also, in 2008, Daily Graphs, Inc., created a 1900 to 2008 stock market wall chart that shows major market and economic events.

We suffer from the same rose-tinted myopia that Zedekiah did. On a societal level, we think the problem with our world is essentially political. If we were just able to kick the present set of bums out of office and elect people who agree with us, the world would instantly be a better place. So we pour our time and energy into political campaigns and boycotts and other efforts to bring about change through political means. On a personal level, we think the solution is to pour our time into gathering the information necessary for wise decision-making. We read the consumer reports before we purchase a new car. We do our homework before we invest money in a particular stock, to ensure, as far as possible, that we will get a good rate of return for our money. We plan our careers years in advance, trying to make sure that we are in the right place at the right time to reach the very top. We try to make wise provision for our retirement years so that we will not be in want.

By Lawrence Van Alstyne December 24, 1863 As tomorrow is Christmas we went out and made such purchases of good things as our purses would allow, and these we turned over to George and Henry for safe keeping and for cooking on the morrow. After that we went across the street to see what was in a tent that had lately been put up there. We found it a sort of show. There was a big snake in a showcase filled with cheap looking jewelry, each piece having a number attached to it. Also, a dice cup and dice. For $1.00 one could throw once, and any number of spots that came up would entitle the thrower to the piece of jewelry with a corresponding number on it. Just as it had all been explained to us, a greenhorn-looking chap came in and, after the thing had been explained to him, said he was always unlucky with dice, but if one of us would throw for him he would risk a dollar just to see how the game worked. Gorton is such an accommodating fellow I expected he would offer to make the throw for him, but as he said nothing, I took the cup and threw seventeen. The proprietor said it was a very lucky number, and he would give the winner $12 in cash or the fine pin that had the seventeen on it. The fellow took the cash, like a sensible man. I thought there was a chance to make my fortune and was going right in to break the bank, when Gorton, who was wiser than I, took me to one side and told me not to be a fool; that the greenhorn was one of the gang, and that the money I won for him was already his own. Others had come by this time and I soon saw he was right, and I kept out. We watched the game a while, and then went back to Camp Dudley and to bed. Christmas, and I forgot to hang up my stocking. After getting something to eat, we took stock of our eatables and of our pocket books, and found we could afford a few things we lacked. Gorton said he would invite his horse jockey friend, James Buchanan, not the ex-President, but a little bit of a man who rode the races for a living. So taking Tony with me I went up to a nearby market and bought some oysters and some steak. This with what we had on hand made us a feast such as we had often wished for in vain. Buchanan came, with his saddle in his coat pocket, for he was due at the track in the afternoon. George and Henry outdid themselves in cooking, and we certainly had a feast. There was not much style about it, but it was satisfying. We had overestimated our capacity, and had enough left for the cooks and drummer boys. Buchanan went to the races, Gorton and I went to sleep, and so passed my second Christmas in Dixie. At night the regiment came back, hungry as wolves. The officers mostly went out for a supper, but Gorton and I had little use for supper. We had just begun to feel comfortable. The regiment had no adventures and saw no enemy. They stopped at Baton Rouge and gave the 128th a surprise. Found them well and hearty, and had a real good visit. I was dreadfully sorry I had missed that treat. I would rather have missed my Christmas dinner. They report that Colonel Smith and Adjutant Wilkinson have resigned to go into the cotton and sugar speculation. The 128th is having a free and easy time, and according to what I am told, discipline is rather slack. But the stuff is in them, and if called on every man will be found ready for duty. The loose discipline comes of having nothing to do. I don’t blame them for having their fun while they can, for there is no telling when they will have the other thing. From Diary of an Enlisted Man by Lawrence Van Alstyne. New Haven, Conn., 1910.

Losing Weight and Eating Tips • Plan most of your big meals at the beginning of each week, and make a list of the ingredients you need to purchase. • Prior to going to the stor, make a list of what you need. • Never shop hungry • Don’t overbuy • Try to buy local, fresh, or organic ingredients when possible. • Keep fresh fruits and vegetables on hand so that when you want a late-night snack, you have something healthy to reach for. • Stock up on frozen fruits and vegetables, especially when they are out of season. (Dollar Tree has the cheapest frozen fruits) • Stay away from canned goods, as often they contain a high amount of sodium. However, I often buy canned beans and legumes (lentils, chickpeas, beans, etc.) but I rinse them with water before cooking to wash away the excess sodium. • Avoid buying junk food—chips, candy, ice cream, popcorn. If it’s in your cupboard or freezer, you will feel more tempted.

Anyways, whenever you are going to buy shares or units of a mutual fund anytime in the future take the stand of a middle class father buying jewels for his daughter’s wedding. Never ever align your investment selection habit with a ultra-fancy rich girl’s cosmetic purchasing habit.

Before wrapping up this chapter, let us look at one of the deadly scams in the Indian primary market history. There was company named ‘MS shoes east’. Shares of this company traded in Rs 150-200 range throughout the year 1994. But towards December 1994 it spurted to Rs 500 without any justifiable rationale behind the raise. Its promoter Pavan Sachedeva and his broker artificially manipulated the stock price to this level.   By February 1995, the company devised an expansion plan for an estimated expense Rs 700 crores. It proposed to raise around Rs 428 crores by means of Fully convertible bonds. These bonds were to be sold at Rs 199 each through public issue. The idea was to provoke people to subscribe the issue with a hope of converting this bond of Rs 199 to a share of Rs 500.   Well, his brokers was constantly buying the stocks from the open market to maintain the price at that high level. But the situation had already worsened. He had bought too much and had too little money at hand that he could not pay the stock exchange for all the purchases he made. BSE could not give money to the sellers of that security. Things turned out to be serious. You may find it hard to believe  - the BSE was shut down for three consecutive days without any business.   Before this drama came to light, FCD ('Fully Convertible Debenture) public issue was a big success and it almost stole the show. Delighted by the overwhelming response from the investing community, MS Shoes had announced to close the public issues few days before the stipulated time. The world came to know that the cruel plan of manipulating the stock price was only to push the bond issue successfully. Even the authorities woke up to the problem. The company was issued a notice. And also it allowed the investors to take back their FCD application. Almost all the investors took back. Even the underwriter refused to buy the unsold portion of the issue because the company had voluntarily announced to close the issue before the end date. The ruling was in favor the underwriter. Sachedeva declared himself to be innocent. MS shoes office resembled a mourning house with  deserted look.   There was one Sachedeva who came to light. There were and probably still are more of them out there.

You shouldn't confuse “stock trading” with “stock investing.” The former requires the stockholder to purchase, hold, or sell stocks to earn profits. The latter, on the other hand, allows the stockholder to get a regular stream of income just by acquiring stocks.   Trading stocks can help you reap large profits on a daily basis. If you will purchase or sell the right stocks, you can secure huge revenues every day. Here, you won't have to study corporations deeply. You just have to observe the trends in the stock market, make some predictions, and purchase or sell stocks according to your predictions.

Some people consider day trading as a lucrative pastime. Actually, some individuals think that anyone can just purchase eBooks about day trading and start earning money easily. Well, nothing could be further from the truth. You should think of day trading as a job. You may think of it as a part-time or a full-time job, but you need to give it the same dedication and commitment as any kind of job available to you.

1. Investors give fund managers money at the wrong time. Now that you’ve had some time to read this book and understand the importance of buying stocks during fear cycles and holding during greed cycles, this first indicator should make sense. To understand this principle, imagine that you’re the fund manager of a $100 billion investment fund. When the stock market crashes and you’re able to purchase severely undervalued businesses with minimal debt, not only do you lack funds to invest, but all your resources are being depleted by scared investors. Instead of receiving money to buy the great deals, your investors are selling their shares in the fund and you don’t have the capacity to take advantage of the market behavior. This reason alone severely handicaps fund managers as they attempt to beat the market.

1. Focus on the short trip. For supermarkets around the world (the same principle applies to all classes of trade), half of all shopping trips result in the purchase of five or fewer items, with one being the most common. These short trips typically account for one-third of store sales. The new strategy is to increase the size of each of those baskets by one or two items. Quick trippers spend money very fast, and getting them to buy one or two more items is far easier than motivating stock-up shoppers to buy ten or twenty more items. This focus, focus, focus on the quick trip could deliver an easy 30 percent sales lift (and a lot more when the synergies with other types of trips become apparent).

Whether appropriate or not, the term “value investing” is widely used. Typically, it connotes the purchase of stocks having attributes such as a low ratio of price to book value, a low price-earnings ratio, or a high dividend yield. Unfortunately, such characteristics, even if they appear in combination, are far from determinative as to whether an investor is indeed buying something for what it is worth and is therefore truly operating on the principle of obtaining value in his investments.

A call is an option to buy a stated amount of a certain stock at a fixed price—generally near the current market price—at any time during a stated period. Calls on most listed stocks are always on sale by dealers who specialize in them. The purchaser pays a generally rather moderate sum for his option; if the stock then goes up during the stated period, the rise can easily be converted into almost pure profit for him, while if the stock stays put or goes down, he simply tears up his call the way a horseplayer tears up a losing ticket, and loses nothing but the cost of the call. Therefore calls provide the cheapest possible way of gambling on the stock market, and the most convenient way of converting inside information into cash.

Jill buys an index mutual fund that tracks the overall stock market, never touching her money and earning the same return as the overall stock market. Average Joe "tinkers" with his portfolio, purchasing some mutual funds through his financial advisor and investing in stocks whenever he gets a particularly juicy tip from his neighbor. Joe earns the same return as the average investor in the stock market.

blame. Consider the 449 companies in the S&P 500 index that were publicly listed from 2003 through 2012. During that period those companies used 54% of their earnings—a total of $2.4 trillion—to buy back their own stock, almost all through purchases on the open market. Dividends absorbed an additional 37% of their earnings. That left very little for investments in productive capabilities or higher incomes for employees.

Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, ten and twenty years from now. Over time, you will find only a few companies that meet these standards—so when you see one that qualifies, you should buy a meaningful amount of stock.

would take only $1.33 million invested in the stock market in 1802 to grow, with dividends reinvested, to about $18 trillion, the total value of U.S. stocks, by the end of 2012. The sum of $1.33 million in 1802 is equivalent to roughly $25 million in today’s purchasing power, an amount far less than the value of the stock market at that time.

Daily Affirmation: If I am willing to spend two years of my life like others won’t, I can spend the rest of my life like others can’t.” The Sky Isn’t The Limit Never tell me the sky is the limit when there are footprints on the moon. The sky is not the limit, if so we never would have gone to the moon. With the proper mindset and mentors, regardless of where you are presently in life, your possibilities are limitless. You are one idea or one person away from resources that could change the legacy of your family and those of others. Will your great-great grandchildren remember your name because they see your footprints (i.e. businesses you left them, stocks you purchased or real estate)?

The old order types were simple and straightforward and mainly sensible. The new order types that accompanied the explosion of high-frequency trading were nothing like them, either in detail or spirit. When, in the summer of 2012, the Puzzle Masters gathered with Brad and Don and Ronan and Rob and Schwall in a room to think about them, there were maybe one hundred fifty different order types. What purpose did each serve? How might each be used? The New York Stock Exchange had created an order type that ensured that the trader who used it would trade only if the order on the other side of his was smaller than his own order; the purpose seemed to be to prevent a high-frequency trader from buying a small number of shares from an investor who was about to crush the market with a huge sale. Direct Edge created an order type that, for even more complicated reasons, allowed the high-frequency trading firm to withdraw 50 percent of its order the instant someone tried to act on it. All of the exchanges offered something called a Post-Only order. A Post-Only order to buy 100 shares of Procter & Gamble at $80 a share says, “I want to buy a hundred shares of Procter & Gamble at eighty dollars a share, but only if I am on the passive side of the trade, where I can collect a rebate from the exchange.” As if that weren’t squirrely enough, the Post-Only order type now had many even more dubious permutations. The Hide Not Slide order, for instance. With a Hide Not Slide order, a high-frequency trader—for who else could or would use such a thing?—would say, for example, “I want to buy a hundred shares of P&G at a limit of eighty dollars and three cents a share, Post-Only, Hide Not Slide.” One of the joys of the Puzzle Masters was their ability to figure out what on earth that meant. The descriptions of single order types filed with the SEC often went on for twenty pages, and were in themselves puzzles—written in a language barely resembling English and seemingly designed to bewilder anyone who dared to read them. “I considered myself a somewhat expert on market structure,” said Brad. “But I needed a Puzzle Master with me to fully understand what the fuck any of it means.” A Hide Not Slide order—it was just one of maybe fifty such problems the Puzzle Masters solved—worked as follows: The trader said he was willing to buy the shares at a price ($80.03) above the current offering price ($80.02), but only if he was on the passive side of the trade, where he would be paid a rebate. He did this not because he wanted to buy the shares. He did this in case an actual buyer of stock—a real investor, channeling capital to productive enterprise—came along and bought all the shares offered at $80.02. The high-frequency trader’s Hide Not Slide order then established him as first in line to purchase P&G shares if a subsequent investor came into the market to sell those shares. This was the case even if the investor who had bought the shares at $80.02 expressed further demand for them at the higher price. A Hide Not Slide order was a way for a high-frequency trader to cut in line, ahead of the people who’d created the line in the first place, and take the kickbacks paid to whoever happened to be at the front of the line.

By the end of 2012, the price of gold reached $1,675 per ounce, and $1 of gold bullion purchased in 1802 was worth $86.40 at the end of 2012, while the price level itself increased by a factor of 19.12.