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Archive for the ‘Success’ Category

Lessons Learned from Big Pharma – The Game

May 30th, 2016

Recently I played a game called Big Pharma. It seemed interesting because it is a business simulation. It was so interesting that I stayed up until 4AM playing. If you are interested in business simulations and you have extra time or on an airplane, I suggest you give it a try.

Big Pharma Game

Big Pharma Game

As I played, I started wondering if this experience is similar to what it is really like to being the CEO of a real pharmaceutical company. I imagined that much of it is quite similar…perhaps if you removed all the boring meetings and time wasted dealing with lawyers.

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The Most Popular OIAI Post of All Time

April 18th, 2016

After analyzing the traffic for the Online Investing AI blog, I became curious about the most popular post of all time. It turns out to be Rich Dad’s Cashflow Game is Now Free!. This got me thinking: why is this post so popular? Of all the Rich Dad posts, why do people love this one?

 

Rich Dad's Cashflow Game

Rich Dad’s Cashflow Game

Perhaps it is because of the high price of the board game. When I last checked it cost over $100, compared to perhaps $20 for most board games. Does the Rich Dad game cost more to produce? No, it costs more because it is worth more.

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The Next Stock Market Collapse: Are we There Yet?

April 4th, 2016

April 3, 2016

It seems that we are entering a decisive period for the stock market. The S&P 500 is right at the top of a channel between 2,100 and 1,920. Although I don’t like technical analysis, it is pretty clear that if it rises significantly about 2,100, then a new bull market will start. Conversely, if it drops below 1,920 a major market crash may follow.

S&P 500 10 Year Chart

S&P 500 10 Year Chart

Although anyone with limited knowledge of technical analysis would come to the same conclusion, I imagine 100,000,000 would-be retirees don’t look at this chart. And even if they did, they would not be able to see its importance.

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Can Trump Defuse the US Debt Bomb?

March 6th, 2016

When I wrote about the US Debt Bomb back in August 2009, it was only(!) about $12 trillion. Since then it has grown to $19 trillion. If it’s difficult to comprehend such a large figure, consider it breaks down to $159,000 per taxpayer!

US Debt Keeps Growing

US Debt Keeps Growing

Unfortunately, this is only a small part of the country’s unfunded liabilities. When you add Medicare and Social Security, the total is about $100 trillion. Many people believe that this is too much for the country to pay off, and that we will never be able to pay it.

How did this happen?

As I have mentioned before, most of the politicians that have run this country for the last 50+ years have not been fiscally responsible. They treat budget spending the same way a teenager uses a credit card. Am I saying that they are bad people?

No. I am just saying that they do not have the skills or inclination to fix the budget problem. They don’t know how to manage money or a business. Even if they did promise to fix the problem, they would never be voted into office. They would have to make massive cuts to Social Security, Medicare, military spending and every other area that people are not willing to cut. The people who depend on all this excessive spending would have to vote for the politician, and they would never do it.

Enter Donald Trump. Although there are many things that are not great about Trump’s proposals, I think that he has the potential to fix problems like this. He’s not a politician. He has so much money and power that he doesn’t have to play politics. And, his confrontational personality seems to be the incompatible with the political process of trading favors.

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Markets go Up and Markets go Down

February 15th, 2016

Although this may seem incredibly obvious, many people say that markets always go up. I remember during the real estate bubble that popped in 2008, agents were saying,

Real estate always goes up.

It’s pretty obvious now that is a lie. But it works for them. The clueless would-be investors that believed them bought up properties like there is no tomorrow. And for them, there wasn’t much of a tomorrow. Most of the properties went into foreclosure and were repurchased by more savvy investors.

Shanghai Composite Index

Shanghai Composite Index 2011 – 2016

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Contempt of Customer

January 31st, 2016

Recently I ordered from an up-and-coming online food delivery service. It was the first time using their service, and although doubtful about their value prop, I thought “Let’s see how it goes.”

Well, to put is nicely, the food sucked. It was cold and unappealing.

I contacted their customer service and expected a prompt refund and a note saying, “Sorry you didn’t like it. Please give us another chance.”

But no. They said, “No, you can’t have a refund.” So they would rather have my $26 than a happy customer.

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Are you Ready for the Financial Crisis?

January 17th, 2016

A wise man once wrote:

Markets top slowly and bottom quickly.

When I read this and anlyzed some of the major market tops over the last 100 years, I was surprised by the accuracy of this statement. (One major exception was the 2000 Tech Bubble, which was quite different from other market dynamics.)

S&P 500 Jan 2011 - 2016

S&P 500 Jan 2011 – 2016

The theory behind this is that the “smart money” figures out that a market is topping long before the average Joe. I’m not sure if I agree with the theory, but it does seem to me that the “stupid money” gets out way too late, after the market has dropped significantly.

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New Years Resolutions

January 1st, 2016

Since today is Jan. 1st, I started thinking about New Years Resolutions. And what better way to start the new year than by creating a blog post?

 

One thing that is funny about New Years Resolutions is that most people have them. And 99% of the time they have completely forgotten all about them by spring. This useless goal setting system is completely broken. Yes nearly all people use it. Then they lament that they “failed” in following through.

 

The #1 New Years Resolution is going to the gym. I wish I owned some gyms. Perhaps 95% to 98% of the members never go. And those that do go only use it a few times per month. Ever wonder my gym membership is so cheap? Because the cheaper it is the easier it is to lie to ourselves.

I don’t want to cancel it because I am going to try to start going.

I wonder why people think it is such a great idea to get drunk and party on New Years Eve. Why? What’s so great about it? It’s just another year that went by. Did you achieve your goals? Did you get rich? Did you even go to the gym? If I answered no to those questions, then I wouldn’t be partying. I would be pondering.

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Buying a Franchise Business

March 13th, 2014

What exactly is a franchise business?
There may be some slight variations from one situation to another but on the whole, this involves buying what is effectively a license from someone to open up your own business operating under their corporate umbrella and brand. It is a very familiar business model and offers the advantage of you being able to join a winning brand rather than needing to come up with your own business idea and develop it accordingly.

Image courtesy Ed Hart

Image courtesy Ed Hart

What are the main advantages of a franchise?
As touched on above, you are theoretically jumping onto the bandwagon of an existing successful company and that may be worth a lot to you.
Other things that might come as part of the package, though not always so do check, might be: Read more…

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Investing in New Businesses: The Ripple Effect

November 12th, 2013

Given the state of current affairs, you may be a bit skeptical to invest your money in a new business that may or may not succeed. Essentially, you are putting money that could be used towards your own improvements to help improve the business affairs of someone else. It can be intimidating if you don’t have a lot of money. However, the rewards could be great if the venture succeeds.

investing_in_a_business

Image courtesy NKNS

Beginning Expenses
After an individual invests money into a business, this goes towards various expenses in order to help it succeed. This could be anything from paper for invoices and receipts to hiring local graphic designers for logos and signs. Landlords, utility companies, office equipment stores and more will receive additional sales due to the fact that the new company needs specific supplies and equipment. As long as the new establishment can maintain itself, this income could become residual for other companies in the area that need the income.

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