Investing way that the Monday Morning Program promotes

The latest BERKSHIRE HATHAWAY INC. SHAREHOLDER LETTER is available.

The last two lines above show the performance of BRK since 1965. Unmatched! However, since 2014, the average Per-Share Market Value of BRK has increased by 13.2% compared to the 15.39% for the S&P 500.

Buffett and Munger predicted many years ago that the day would come that they would not be able to match the S&P 500 performance. The size of the company is so big now that they cannot turn on a dime the way that they used to be able to do.

In fact, Buffett wants his estate to invest most of the money which he is leaving to his wife after he dies, into an index fund that tracks the S&P 500.

That is precisely the way that the Monday Morning Program promotes.

If it is good enough for Buffett and his heirs and successors, should it not be good enough for all investors?

With the habits of the Monday morning program, luck hardly matters.

Good luck!

How much has the US stock market gone up over the long term? How can we benefit?

At 1:00 PM today, I will appear on the program Modern Investing on IBM TV with Sasha Starr.

Here is the YouTube link: https://www.youtube.com/watch?v=rnX1BOJD2qg

I will show a PowerPoint presentation that Monday Morning Program members understand well. You can watch it any time. We welcome your comments.

Now, let us talk about the US stock market, the best-performing market over the last 200 years. With fluctuations, it has gone up an average 0f 9.8% per year since 1928. In general terms, it has been the investor’s best way to grow savings. Of course, we can cherry pick other investment that have done better, say San Francisco and Toronto real estate. But then, to compare apples to apples, we need to cherry pick stock market-listed securities such as Facebook, Amazon, Apple, Netflix, Google and Tesla. For every investment that has done exceptionally a well, there are hundreds which never made it and which never heard of.

So, habit number three is to buy the US market as a whole by purchasing an exchange-traded fund which tracks the S&P 500. SPY is a good example. No stock picking.

Warren Buffett, one of history’s bests investors could not equal that approach between 2020 and 2022. Look at the chart comparing his company BRK, to the market as shown by S&P 500. He stated:

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Questions about the future of SPY

On May 15, 2021, from Dr. Hardik Patel, age 39, Ajax Ontario, Canada,

Questions:

I like all your approaches and am following them. I feel confident investing in SPY and have done so for over the last two years. The market being down, I don’t have a 50:50 allocation any more. Mostly my investments are in SPY now which is OK given my age.

Should I save more cash to invest as the market comes down?

Whats your prediction? This is the lowest market has been since 2020.

Monday Morning Millionaire Program Answer:

Thank you for your questions, Dr. Patel.

The one prediction that we can make with absolute certainty is

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Mon. May 16, 2022. How our fearless, intrepid investor made out recently and her plans for today

Here is how our fearless, intrepid investor did over the last three weeks in her “fun” portfolio writing covered calls on Novavax (NVAX) on Mondays, expiry dates on Fridays of the same week.  To lower the risk of being assigned, she wrote those $10 out of the money instead of the usual just out-of-the-money sale, as she did in the past.

On April 22 expiry date, she sold ten covered call contracts on NVAX and got $US227.50.

On April 29 expiry date, she sold ten covered call contracts on NVAX and got $US547.50.

On May 2 expiry date, she sold ten covered call contracts on NVAX (C 06MAY22 56.00) and got $1,170.00. She was assigned and her NVAX shares were called away.

On May 16 expiry date, she sold ten covered call contracts on NVAX (C 13MAY22 68.00) and got $1.520.00.

Total premiums received = $US3,465.00. She was assigned once out of the three covered-call sales and decided to buy NVAX again to continue selling covered calls in her “fun” portfolio.

Most “fun” portfolios underperform and cannot equal the S&P 500.  Go here for more about “fun” portfolios,

What will she do when the market opens at 9:30 AM, today?

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How to benefit from inflation. It could be here for a while.

The media tell us that governments are doing everything possible to tame inflation. Really? Like all borrowers and bond issuers, governments are the biggest beneficiaries of inflation. They repay all debts with money of lesser value. In addition, as the price of goods and services goes up due to inflation, so does the goods and services tax that the government collects.

So governments repay all debts with money of lesser value while collecting more revenue. What’s not to like?

Inflation

 

Winners

Losers
 

Borrowers

Savers

Corporate and government bond issuers

Retirees living on a fixed income

Owners of houses, land, physical assets

Workers on fixed income

Companies and governments paying fixed income salaries

Everybody because of general economic uncertainty

Exporters

Importers

There are several ways to protect ourselves from inflation.

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In retirement, you will need $400 a month more than you expected!

Glenn Ruffenach

Writing in the Wall Street Journal on March 30, 2022, the author figures that you will need about $5,000 a year more  in retirement than you expected!

Surprises are a part of life and our budgets need some wiggle room.

An unexpected toothache needing attention, veterinary services to remove the porcupine quills from your dogs face, storm damage to a part of your house, your grown children asking for help – the list is long.

How close is $400 a month or $5,000 a year to being the correct figure? Call it the $400 rule. The accuracy of that number is not as important as budgeting for the unexpected is.

With the habits of the Monday morning program, luck hardly matters.

Good luck!

 

Why do I buy subscriptions for friends, family and vip clients?

Why do I buy subscriptions for friends, family and vip clients?

Timothy Brown

 

For Christmas, I persuaded my father to buy all his grandchildren a lifetime membership to the Monday Morning Millionaire.

As part of my ongoing gifting, I buy subscriptions for very important friends and other family members.

I have even bought some subscriptions for VIP clients who are in the midst of their careers and have a portfolio that has quite frankly got them stymied. Many of them express severe dissatisfaction with the investment advisor community who has been churning and burning their portfolios for years, while making handsome fees, only to return less than a 12-year-old or a monkey can make throwing darts or using the S&P 500 exchange-traded fund indexes.

I get great satisfaction from buying lifetime memberships for the Monday Morning Millionaire, knowing that if the recipient should actually listen to and follow the six principles and the fundamentals of the habits of highly successful investors, they would do much better for themselves. I gain no financial rewards from this whatsoever. And I never plan to or ever will, as the successor to Dr. Milan Somborac.

A few of my friends and family members have actually listened in the early stages and all are reporting peace of mind, growing returns as compared to their previous efforts, regardless of who advised them, and most importantly, they trust in me and they trust in the belief system of the habits of the Monday Morning Millionaire, which has been professed by many other successful people before us.

There is really nothing new here, ladies and gentlemen. It is proven, it is effective and it is time tested.

How to prosper. Welcome new members! Thank you previous members!

 

Over the last few weeks, we have had more new members joining us than at any other time. We want to welcome them and we want to thank all those who have granted gift memberships to others.

As an introduction to new members, we present a summary of the Monday Morning approach to investing in this post. Existing members will find it to be a good review. Call me at 705-441-4566 if you want to discuss any of this. (No charge)

First, over the last 200 years, the US stock market has generally had the best returns of any investment.

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What do you think are the main disadvantages of electric vehicles (EVs)? Survey results

First, a thank you to all who gifted a membership or a one-on-one zoom meeting to friends and relatives. We think that they make ideal gifts. Consider it.

Next, our sincere gratitude to all members who took the time to respond to our Friday,  May 6 survey about the disadvantages of EVs. Time is an irreplaceable resource. We appreciate your involvement.

You can see our survey results below.

What do you think are the main disadvantages of EVs?

High cost.

21.1%

Low battery mileage.

28.9%

Insufficient number of charging stations.

50%

You can you read some interesting comments below.

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