Wisdom on Wealth

The following segment first aired on KEDM 90.3 on August 26, 2015

Question: My brother stole money from my parents 30 years ago. He said he was borrowing it, but he never paid it back. After they died, the stolen money was never brought up and the inheritance I got was the same as him. This has always been a sore spot with me. I won’t be around much longer to enjoy that money, but my kids might get something out of it. Do you think he owes me the money, or the money plus interest? How would I figure that?

Answer: Lost opportunity cost.

The term is used in economics to describe the true cost of something lost, stolen or wasted.

The following segment first aired on KEDM 90.3 on August 19, 2015

Question: My investment advisor tells me I need to be more of an investor and less of a speculator. What does that even mean? It sounds like two words for the same thing.

Answer: Speculating is very different from investing. But many an investor has sunk his own boat by behaving like a speculator.

By Mike Jones, posted January 28, 2016

Global asset classes in the twentieth century produced nice gains in wealth for individuals who bought and held those assets for long periods of time. It is also true that these assets went through long periods of stale performance or regular and painful drawdowns, like the Global Financial Crisis of 2008.

Question: All I hear is China, China, China and the stock market keeps falling deeper and deeper into a hole. I’m seeing my portfolio lose money it seems daily. What should I do?

Answer: “A schedule defends against chaos and whim.”

Or so says Pulitzer Prize winner Annie Dillard. She probably meant that as a call for daily discipline as a writer, but I see much wisdom for investors as well.

The following segment first aired on KEDM 90.3 on August 12, 2015

The following segment first aired on KEDM 90.3 on August 5, 2015