Posts filed under “Investing”

Congratulations, you were drafted! Prepare to go broke.

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My Sunday Washington Post Business Section column is out. This morning, we look at how often pro athletes manage to go financially bust.

The print version had the headline Congratulations, you were drafted! Prepare to go broke!, while the online version is merely Professional athletes need to learn to keep their finances in good shape.

In the column, I detail why pros go broke (Youth and inexperience play a large part in it) as well as what they can do to avoid the most common fate of the pro athlete.

Here’s an excerpt from the column:

“The data on professional athletes are startling: Shortly after they retire, nearly four of five NFL players are bankrupt or under financial stress, according to Sports Illustrated. Joblessness and divorce are the main reasons. It’s marginally better in the National Basketball Association, where after retirement nearly two of three players are broke within five years.

Why does this happen? There are lessons here even for those investors who cannot hit a jump shot. Let’s look at the reasons so many athletes go broke.”

I really like what the Post did in the dead tree version of the paper — nice art work, including a good table:
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click for larger version

athlete bust


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Source:
Professional athletes need to learn to keep their finances in good shape
Barry Ritholtz
Washington Post, June 1 2014  
http://wapo.st/1nT4d4L

Category: Apprenticed Investor, Foreclosures, Investing, Really, really bad calls

NorCal FPA: This Is Your Brain On Stocks

This is the presentation I gave this week out in San Francisco:

Category: Cognitive Foibles, Investing, Psychology, Think Tank

What is it going to take to kill this species off?

Why do we pay attention to the most dire of forecasts? I pulled this from a 2011 piece I wrote: “You humans are a hardy breed. No matter how dire the circumstance, your species has managed to prosper. You survived the Ice Age, the Dark Ages, the Middle Ages, the Age of Aquarius (as well…Read More

Category: Humor, Investing, Psychology

Smart Investing is Reality-Based

Robert P. Seawright is the Chief Investment & Information Officer for Madison Avenue Securities, a boutique broker-dealer and investment advisory firm headquartered in San Diego, California. Bob is also a columnist for Research magazine, a Contributing Editor at Portfolioist as well as a contributor to the Financial Times, The Big Picture, The Wall Street Journal’s…Read More

Category: Apprenticed Investor, Investing

Mobius’s Emerging Markets Outlook

Mark Mobius, Templeton Emerging Markets Group Executive Chairman sits down with WSJ Editor in Chief Gerard Baker to discuss the current geopolitical landscape and his investment outlook for emerging economies including Nigeria, Ukraine, Russia, Brazil, India and China.

Category: Investing, Video

Money Doesn’t Talk, It Swears

Happy Birthday Bob Dylan!     How Bob Dylan’s message in ‘It’s Alright, Ma’ applies to the investment business. Darkness at the break of noon Shadows even the silver spoon The handmade blade, the child’s balloon Eclipses both the sun and moon To understand you know too soon There is no sense in trying…. Old lady…Read More

Category: Investing, Music

What ‘This Time It’s Different’ Really Means

Investors must recognize what ‘this time it’s different’ really means Barry Ritholtz, Washington Post May 18, 2014     “The four most expensive words in investing are: ‘This time it’s different.’” So said Sir John Templeton, the legendary investor and mutual fund pioneer. The phrase contains tremendous wisdom, but only if you truly understand what…Read More

Category: Apprenticed Investor, Investing, Psychology

In An Expensive World, Value Emerges in Japan

Nice take from the Global Quantitative Research team at Societe Generale: Source: Societe Generale Quant Quickie   SocGen goes on to add: • In a world where more and more assets are being pushed up to uncomfortably high valuation multiples, finding assets cheap enough to buy is a serious challenge for investors who need to…Read More

Category: Investing, Valuation

You Don’t Understand Risk.

You don’t understand risk. I don’t mean you, in your professional capacity. I mean you, the human being whose brain is desperately trying to keep you alive. An endless procession of mortal threats are trying to end your particular genomic variation, forcing your brain to respond first and think later. Your existence is threatened by…Read More

Category: Investing, Psychology

Forget Seasonality and Just Invest Smarter


Source: Yahoo Finance

 

Good interview by Josh, explaining how Traders and Inv estors have very different time frames.

Category: Investing, Video