A correction and a perspective on Biden’s multi-trillion dollar infrastructure plan

We recently wrote about the power of compounding. We stated that starting in 1988, one of our members built his portfolio from $148,611 at a compound annual growth rate of  8.79% to a recent figure of $1,000,560.00.

Correction!

The actual figure is $1,560,000.00.

We apologize.

On another issue, those interested can quickly obtain detailed information on Biden’s multi-trillion dollar infrastructure plan from many reliable sources; there is nothing worthwhile that we can add, except the following observation.

There’s no mention of reducing the cost of university education.

University education is free (covered by the taxpayer) in Denmark, Finland, Germany, Iceland, Norway, Sweden, Argentina, Brazil, Cuba, Ecuador and Venezuela. Educated people earn more and pay more in income taxes so in these countries, taxpayers recover their investment easily.

By way of contrast, the US and Canada, the wealthiest countries in history, burden their university students with crippling debts. Further, students cannot eliminate education debt through bankruptcy.

Multi trillion-dollar infrastructure plan? The shameful remains shameful.

We have designed the Monday Morning Millionaire Program to offer abstracted investment education. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.

The program does not provide any investment advice or endorsements.

Members can read our posts in less than five minutes. Following and studying the links embedded in these posts would take longer. How members manage a post depends on their level of interest and investing knowledge.

 

The eight wonders of the world

Eight? You thought there were seven! (1. Great Pyramid of Giza, 2.  Colossus of Rhodes, 3. Hanging Gardens of Babylon, 4. Lighthouse of Alexandria, 5. Mausoleum at Halicarnassus, 6. Statue of Zeus at Olympia, 7. Temple of Artemis )

Well, no less a person than Albert Einstein added the eighth, namely, compound interest. Here is a real-world example of how that works.

One of our members left Canada in 1988. At that time, he had $148,611 invested in a tax-advantaged account.

An ultra-high net worth  investor with an MA in economics and an MBA, he was able to grow it at a compound annual growth rate of 8.79%.

Recently, the account had a value of $1,000,560.00!

Investors today do not need an MA in economics and an MBA to get that kind of results. Our seasoned members could teach a high school student how to do it.

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If less is more, can we say more is less?

In 1947, Ludwig Mies van der Rohe came up with the phrase “less is more” as applied to architecture. Would that be true for investing? If less is more does that mean that more is less?

Nobel laureate economist Eugene Fama has this to say: “Invested money is like a bar of soap. The more you handle it the less you have.”

The record shows that active investors underperform passive index investing by a large margin. (See SPIVA.)

The harder I work the luckier I get. ” is an everyday experience for all of us. Studying for exams, all the way from grade one to post-grad university is but one example. Accustomed to this truism, many carry it into investing. Opposite to everyday life experience, that is not so in investing.

One of our surveys shows that 82% of our members and subscribers spend less than one hour a week managing their portfolios. Many of these portfolios, if not most, are retirement level amounts.

New members would profit by following the above links. Long-standing members might do so for review.


We have designed the Monday Morning Millionaire Program to offer abstracted investment education. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.

The program does not provide any investment advice or endorsements.

Members can read our posts in less than five minutes. Following and studying the links embedded in these posts would take longer. How members manage a post depends on their level of interest and investing knowledge.

 

 

Vaccine survey results

Greetings everyone,

First of all, a sincere thank you to all those who took the time to respond! We know that there are many, mostly hucksters, wanting some of your time.

On Friday, April 2, 2021, we asked our members and subscribers whether or not they will get a COVID-19 vaccine when it becomes available.

You can see the results below.

Choice Percentage
                   Yes 91.2%

                    No

8.8%
I have not decided yet. 0%

Social Science & Medicine  reported a survey that found that more than 31% of 5,009 Americans queried between May 28 and June 8 of last year did not intend to get the COVID-19 vaccine. The individuals most likely to refuse the vaccine were Black people, women and those who were conservative political leanings.

Why Black people?

The 1932 US Public Health Service Syphilis Study at Tuskegee involving black men only is a glaring example of major moral breaches. The study was supposed to last six months; it lasted 30 years. The subjects gave consent without being informed and were not given treatment when it became available with the development of penicillin. It is easy to understand their reluctance to get vaccinated.

President Clinton apologized for the US government’s role in the study; the victims and their descendants received some compensation.

While this survey has little to do with investing, we thought our members and subscribers would find it interesting.


We have designed the Monday Morning Millionaire Program to offer abstracted investment education. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.

The program does not provide any investment advice or endorsements.

Members can read our posts in less than five minutes. Following and studying the links embedded in these posts would take longer. How members manage a post depends on their level of interest and investing knowledge.

 

Writing (selling) covered calls for income in a way to make Warren Buffett proud.

I recently had a one-hour zoom meeting with one of our members, 44 years old, who wanted to know how to invest a lump sum of money for income. We went over the six habits of Monday Morning Millionaires, and he knows that to prosper, he merely needs to practice these habits.

Investors can make additional money by writing (selling) covered calls and you can see what Rosi and I plan to do today when the market opens at 9:30 AM today.

Our core portfolios hold nothing but 50% SPDR S&P 500 ETF Trust (SPY) and 50% money market (TDB166). Warren Buffett would approve.

At the closing bell last Thursday (Friday was a holiday) the market price of SPY was greater than our strike price and our shares were called away. We have placed orders to buy back an equal number of shares which were called away when the market opens today. That will take place in less than half a second with commissions so low that we can ignore them!

Once we acquire the shares, we will write covered calls on our SPY holdings at $403, which will allow us to benefit from $2.00 per share growth if there is any, expiry date this coming Friday, April 9 (SPY C 05APR21 403.00)

Contact me if you want an explanation. (milan@drmilan.com)

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From diapers to diplomas. How to mitigate the cost of raising children effectively.

Not counting food and accommodation, the annual cost of undergraduate education is all over the map. Bursaries, scholarships and tax implications make figuring out the cost of a graduate education even more complicated.

When I graduated in 1965, students who lived at home in a university town could fund the cost of their education from the earnings of a summer job.

That is not remotely possible today.

However, if we take full advantage of the assistance available from US and Canadian  governments and also maximize the impact of compound interest, we can reduce the pain substantially. That means that we need to initiate these plans as soon as possible, that is, as soon as the intended recipients are born.

The 529 plan in the US and it’s Canadian equivalent, the Registered Education Savings Plan (RESP) are tax-advantaged ways of reducing future university costs.

The details vary. Your banker will happily present you with the most useful considerations for your children or grandchildren.

You and they will be glad that you did.


We have designed the Monday Morning Millionaire Program to offer abstracted investment education. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.

The program does not provide any investment advice or endorsements.

Members can read our posts in less than five minutes. Following and studying the links embedded in these posts would take longer. How members manage a post depends on their level of interest and investing knowledge.

Comparing active vs. passive investing for evidence-based best results

The above chart was recently published by S&P Dow Jones Indices. Not news to Monday Morning members, it supports the second of the six habits of Monday Morning Millionaires, namely, be a self-directed (do-it-yourself investor).

Certainly, money managers can equal the S&P 500. After all, we can teach a high school student how to do that. But they do need to buy groceries and pay the rent. Their clients pay for that so, understandably, matching the S&P 500 after their fees  is exceedingly difficult to do consistently.

Warren Buffet’s mentor, Benjamin Graham, stated “To achieve satisfactory investment results is easier than most people realize.” Graham is considered by many to be the father of security analysis. His respected book, Security Analysis, co-authored with David Dodd, was published in 1934 and is still in print.

He made the above statement before the S&P 500 existed and before exchange-traded funds tracking it, were in place. With these tools now available, he would say, “To achieve satisfactory investment results is much easier than most people realize.”

Few people achieve satisfactory investment results. For the reason that this is so, go here and here and here.

Call (705-441-4566 )  or email me (milan@drmilan.com) if you want some assistance with being a do-it-yourself investor.


The Monday Morning Millionaire Program contains compressed investment opinions. Over the last two decades, these have outperformed over 90% of portfolios including professionally managed ones.

The program does not provide any investment advice or endorsements. With fewer than 400 words, members can read our posts in less than five minutes. Following and studying the links embedded in a post would take longer. How members manage a post depends on their level of interest and investing knowledge.

 

 

SEC sets new whistleblower record. Can investors really prosper? How?

 

Ray Bursey, one of our Newfoundland members, not long ago, sent a link to a recent article in the INVESTMENT EXECUTIVE , which dealt with the record payout by the US Securities and Exchange Commission (SEC) to a record number of whistleblowers.

Record payout, record number of whistleblowers by the end of the first quarter of this year?! Think this is an April Fool’s statement? It is not. What will that look like by the end of the year?

Recently, we posted an article titled Wall Street integrity, the oxymoron to end them all.

The article dealt with SEC enforcement actions with associated fines against Wall Street investment banks. In 2020, largely due to COVID-19, the SEC brought a record low of 405 actions against investment banks.

And the amount? At $4.68 billion, the amount was a record high!

And the reasons? Market manipulation, insider trading, misleading information about securities, the omission of important information about securities, stealing customers’ funds or securities and other crimes that would hurt investors if undiscovered.

And who pays? It appears that the investment banks pay, but for the real answer, look in the mirror.

Who pays the whistleblowers? Again, look in the mirror.

Can investors prosper, Wall Street “integrity” being what it is?

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A sincere welcome to new members! How to benefit from our suggestions.

A sincere welcome to the new members who joined us in March and thank you to those who referred others to us! We owe you.

New members can develop our investing habits and grow rich.

With over 440 articles that we have posted, new members might find it a challenge to select the ones from our library that most apply to their situation. Established members might benefit from a review.

We suggest the links below.

1. How is Monday Morning Millionaire Program opinion different from free advice from banks?

2.Anyone can equal the market. Few do. Why is that? Part 1

3.Anyone can equal the market. Few do. Why is that? Part 2

4.Anyone can equal the market. Few do. Why is that? Part 3

5.Better asset allocation leads to improved portfolio.

6.A Question About Foreign Markets

7.Wall Street integrity, the oxymoron to end them all

8.How to tilt risk/reward in our favor.

9.How to generate extra income safely and effectively.

10.Can the hopes of the average investor be realized?

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

Good luck!


We have designed the Monday Morning Millionaire Program to offer abstracted investment education. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.

The program does not provide any investment advice or endorsements.

Members can read our posts in less than five minutes. Following and studying the links embedded in these posts would take longer. How members manage a post depends on their level of interest and investing knowledge.

De gustibus non est disputandum plus covered calls for income this week

Wanting to celebrate a special event, a couple went to their favourite high-end restaurant and ordered dinner and a $1000 bottle of wine. They raved about how exquisite it was! Worth every penny!

It turned out that the waiter had made a mistake and brought them a $30 bottle of wine!

Draw your own conclusions.

A single bottle of each of the 10 most expensive wines today would fund a comfortable retirement.

  1. Screaming Eagle Cabernet 1992 – $500,000
  2. Jeroboam of Chateau Mouton-Rothschild 1945 – $310,000
  3. Cheval Blanc 1947  – $305,000
  4. Shipwrecked 1907 Heidsieck – $275,000
  5. Chateau Lafite 1869 – $230,000
  6. Chateau Margaux 1787 – $225,000
  7. Ampoule from Penfolds – $168,000
  8. Chateau Lafite 1787 – $156,450
  9. Henri Jayer, Vosne-Romanée Cros Parantoux 1999 — $136,955
  10. Cheval Blanc St-Emilion 1947 – $135,125

It might be worth reviewing the greater fool theory.

On another issue, here is what Rosi and I plan to do today when the market opens at 9:30 AM.

Our core portfolios hold nothing but SPDR S&P 500 ETF Trust (SPY). Warren Buffett would approve.

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