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Archive for June, 2020

The Effect of Long Term Inflation on Real Estate: Part 1 By- Klarise Yahya

Posted on 01. Jun, 2020 by .

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Inflation: There is great satisfaction when investments appreciate in value, and a modest celebration is called for. Maybe get your hair done early this month.  But before Diana starts the highlights, it is useful to understand that not every new dollar received benefits the investor equally. Appreciation comes in two forms. First, there’s the increase […]

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Something to Think About #90 – Information, Not Advice – Part 10- By Klarise Yahya

Posted on 01. Mar, 2020 by .

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Managing Expectations  “Mr. Unrealistic Hopes, meet Ms. Unmet Goals.” Somewhere there’s a survey showing that Millennials (b: 1981-1996) who have never experienced a stock market correction (a decline of 10% or more), let alone a bear market (decline of 20% or more) have convinced themselves that the average growth of a diversified basket of large […]

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Something to Think About By – Klarise Yahya

Posted on 01. Jan, 2020 by .

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Continued from Part 7 . . . The widow’s advantage was that she saw “when” not as a fixed point in the future but as a trend line. “Over time,” she thought, “the line will go up. This investment will compound better than the available alternatives”. While she seldom bought individual companies anymore, sometimes she […]

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Something to Think About #87 – Information, Not Advice Part 7 by – Klarise Yahya

Posted on 01. Dec, 2019 by .

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Continued from Part 6 . . . Assuming Greater Risk What follows are additional examples of some of the techniques the Bond Geeks use to goose their returns. For clarity, the examples below will use hypothetical data and do not adjust for taxes, inflation, or other trifles that might obscure the larger point.

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Something to Think About #86 – Information, Not Advice Part 6 by – Klarise Yahya

Posted on 01. Nov, 2019 by .

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Continued from Part 85 . . .  With all of this, why buy bonds? Proper diversification between asset classes enhances portfolio growth because, as someone once said, “When one asset loses, another gains”. That only happens when there is an imperfect correlation between assets. Bonds are the classic asset used to offset potential losses in […]

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Something to Think About #85: Information, Not Advice Part 5 by – Klarise Yahya

Posted on 01. Oct, 2019 by .

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Continued from Part 04  . . . Standard Deviation (“How sure am I to get it?”) The standard deviation (SD) straddles the mean (the “average”), with half the SD on one side and the other half on the opposite side.

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Something to Think About #84: Information, Not Advice – Part 4 by Klarise Yahya

Posted on 01. Sep, 2019 by .

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Continued from Part 3 . . . The Horse One SD is defined as the range about the average return containing 68% of the data points, with half the data points being beneath the average return and the other half being above. Relative to any given asset, those two figures will reveal (a) how much […]

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Something to Think About #83: Information, Not Advice: Part 3 By – Klarise Yahya

Posted on 01. Aug, 2019 by .

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Continued from Part 2 . . . Diversified Coin Flip – Time goes by.  Uncle Fred offers to divide your retirement account into two equal parts (Part A and Part B) and conduct a separate coin toss for each half. Whether heads or tails, the results of each coin toss for Part A will be […]

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Something to Think About #82: Information, Not Advice, Part 2 by – Klarise Yahya

Posted on 01. Jul, 2019 by .

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Continued from Part 01 . . . One of the things lenders are looking for is liquidity. How much cash-equivalency does the borrower have? Something always comes up. Does the borrower have enough liquidity to get through it? Cash equivalents include things like savings and checking accounts, retirement funds, cash value of life insurance policies, […]

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Something to Think About #81: by – Klarise Yahya

Posted on 01. Jun, 2019 by .

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Continued from Part 80 . . . Determining the Mean The mean is the statistical determination of “average”. The mean of 10+10+30 is 16.67. That is also the average. Both words refer to the same result, but with a small difference. Generally, “average” is used to imply a WAG (Wild Alcoholic Guess), while “mean” suggests […]

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Something to Think About #80: Interest Rates: Direction by – Klarise Yahya

Posted on 01. May, 2019 by .

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Continued from Part 79 . . . Beneficial Beneficial deflation reveals itself through price declines, either generally (the Second Industrial Revolution) or specifically (e.g., ever-lowering prices for computer memory).

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Something to Think About #79: Deflation by – Klarise Yahya

Posted on 01. Apr, 2019 by .

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Continued from Part 78 . . . Lending – Notwithstanding the potential for inflation-related losses, there are many reasons to buy bonds. An obvious example might be when a major expense is expected in a couple of years (grand-daughter’s wedding, etc). The investor has the money now, but doesn’t want to put it into stocks […]

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Something to Think About #78 – by Klarise Yahya

Posted on 01. Mar, 2019 by .

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Continued from Part 77 . . . In Emily’s mind, apartment investments are by definition secure. Banks don’t lend $1 or $2 or $3 for every dollar of down payment the buyer contributes if the investment is risky. But, of course, not all apartments are equally secure. We’re using “secure” in the Buffett sense, meaning […]

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Something to Think About #77 by – Klarise Yahya,

Posted on 01. Feb, 2019 by .

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Emily’s Notes: Risk You’ve heard the saying, “To win big you’ve got to bet big”? That pretty much incorporates the essential elements of risk right there: there are two sides to it. “Risk” is not the same as “loss” because there is also the chance of gain. A symmetrical risk profile has a 50% chance […]

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Something to Think About #76 By – Klarise Yahya

Posted on 01. Jan, 2019 by .

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Emily’s Notes: Triple-Net Properties This last election was only the latest battle of a seemingly endless war, but Emily was at least temporarily relieved when Proposition 10, the “Local Rent Control Initiative” failed by a vote of 60% to 40%. That rent control measure would have allowed localities to layer new burdens on residential landlords, […]

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Something to Think About #75 by – Klarise Yahya

Posted on 01. Dec, 2018 by .

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Emily’s Notes: Aspects of “Location” Emily slowly recognized that her notes on investing in residential income properties were not as well organized as she would like. They were in chronological order and that meant that it was not easy to access the data she might want to review. Easy access to data is important. One […]

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Something to Think About #74, Part 37 by – Klarise Yahya

Posted on 01. Nov, 2018 by .

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If you’ve missed some of the basic articles, guidelines on successful investing are in my book “Stairway to Wealth” available at LuLu.com. Continued from Part 36: Wrong! Capitalizing “Forecast” Rents

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Something to Think About #73, Part 36 by Klarise Yahya

Posted on 01. Oct, 2018 by .

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If you’ve missed some of the basic articles, guidelines on successful investing are in my book “Stairway to Wealth” available at LuLu.com.  Continued from Part 35:  Consumables vs. Assets, Part 2 Businesses: Generally, because of low barriers to entry consumables tend to be price sensitive. Commodities are a type of consumable that competes only on […]

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