Tag Archives: rich

The Most Popular OIAI Post of All Time

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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Quit Being Unfair to the Rich! Five Ways You Beat the Rich

Flickr Creative Commons -- Mihhailov

Flickr Creative Commons — Mihhailov

You should all be ashamed of yourselves — you and your “level playing field” exhortations.

The rich and their children are hopelessly outmatched in so many ways by working- and middle-class folks that it’s not even fair.

OK, so maybe the rich do have certain advantages. They can send their kids to great schools. When they compound their money, a little is a ginormous sums. They can network and hobknob with contacts that can open up new opportunities.

But…

For the non-rich investor or entrepreneur, making money may actually be easier than the rich.

The Rich Are Lazy
Rich people become comfortable and their interests move toward other activities. They, essentially, become lazy and pampered. That’s a very noncompetitive stance.

The Rich Are Stupid
Stupid is a mean word. Uninformed? Yeah. That sounds better. But, despite the access to the finest institutions of higher learning, the rich are saddled with “Yes-sir-or-ma’am” thinking. They surround themselves with people who always agree with them — and that cuts them off from learning valuable lessons, both practical and academic. You’ll notice that the rich who make their money in one economic condition, rarely lead the next.

The Rich Have Lazy Money
The rich pass on money to their managers and handlers. Their managers may or may not have their best interest in mind and, so, can make mistakes or poor investments with the money.

The Rich Are Attached
Rich people are terribly loathe to give all the good things they have up (“loathe” — that’s what rich people do instead of  “hate.”) Since they become attach, they fail to move out of bad opportunities and are slow to seize good opportunities.

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The Rich Get Richer. Is That Bad?

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Well… The rich just keep getting richer.

According to recent statistics, the wealthier members of society are making more money faster than the rest of us.

And that’s bad. Or is it?

It should come as no surprise that the wealthy get rich faster.

They have access to wealth-building opportunities that we don’t, like venture capital. These are high risk, but really high reward investments. While you and I are earning single-percentage returns — if we’re lucky, rich folks can make double, triple their initial investments. That’s just the beginning.

Rich folks also get a chance to connect with other rich folks. That increases the chances they’ll be able to connect with more money-making opportunities.

For those who are not happy with rich people — the one percenters — this is more than enough reason to shout about the injustice of the system. But, this fails to take in account some some important points.

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Trading Strategies of the Rich and Famous: John W. Henry

Image courtesy Wikipedia

The following is part of a series that I’ll be creating on trading strategies of well-known traders and investors. Today, we’ll look at the keys to the the investment and trading strategies of trend trader John W. Henry.

Unless your a Red Sox fan, you might not have heard of John W. Henry. When it comes to the lexicon of great traders, John W. Henry doesn’t hold a candlestick chart to guys like Warren Buffett and Richard Dennis. But he should be there.

One thing you notice about great traders is there’s no such thing as a “pedigree.” They don’t all come from Ivy League schools. They don’t all start investing early. A lot of traders don’t even have a financial background.

Henry was from a farm family. He went to Victor Valley College and spent a stint at the University of California. What was his major? Finance? Economics? Nope. Philosophy. He didn’t graduate, by the way.

Despite this unconventional background, in the late 1970s, Henry began to trade. First, he traded something he was familiar with–soybeans and corn futures. But, Henry eventually created and tested a systematic trend trading strategy for multiple assets, mostly commodities.

The tests proved successful. That’s an understatement.

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Trading Strategies of the Rich and Famous: Warren Buffett

Image courtesy Creative Commons

The following is part of a series that I’ll be creating on trading strategies of well-known traders and investors. Today, we’ll look at the keys to the the investment and trading strategies of Warren Buffett.

Buffett, the sage of Omaha, is probably the most famous example of a value investor who used several strategies to make his holding company Berkshire Hathaway a premier investment institution while making billions for himself. But he’s not the pioneer. One of the pioneers of value investing is Benjamin Graham, who just so happened to be Buffett’s teacher. Graham, who we’ll profile in an upcoming post, literally wrote the book on smart investing. The book, which is now the Bible of value investing, is called The Intelligent Investor.

Graham taught Buffett the cornerstone to his trading strategies. He looks for a “margin of safety.” Essentially, you’re looking for stocks that are cheaper than they should be. Sounds easy, right?

It is.

And it isn’t.

Let’s take a look at this strategy in depth.

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Weekly Wisdom: Rich! Rich! Rich!

pic by kevindooley @ Flickr

Rich! Rich! Rich!

What does it mean to you?

Of course, there’s monetary wealth. But there’s other things you can be rich in. Good health. Friendship. Love. You name it.

In this edition of Weekly Wisdom, we’ll take a look at some great bits of wisdom on monetary wealth–and some of the other types of riches.

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How Trading Beliefs Affect Trading Reality

pic by notsogoodphotography @ Flickr

Sit down, folks, I’m going to get all kooky on you.

We’ve talked a lot on this blog about the power of beliefs to influence your trading reality. Greed is a belief and it can certainly affect your trading discipline. Then there’s fear–part of what we called the Lizard Brain.

But could it be a lot deeper than that? Could those beliefs interface with reality itself and actually influence the outcome of your trades?

Whoa!

Hey, if it was just coming from me, I would agree with most of you out there who are thinking that I lost my mind. (And that’s always a fair debate.) But there are a lot of other folks who would back up this idea, including a few noted quantum physicists, who have dealt with the inescapable conclusion of the well-documented observer effect.

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Is Wealth Contagious?

pic by photobyalyssa @ Flickr

If you ever been stuck in an elevator with someone who is sneezing and sniffling, you know that colds are contagious.

But, what about attitudes?

You’ve probably played on sports teams or worked in companies that had a collective attitude. An attitude–bad or good–seems to be contagious.

Let’s take this one more step. Is wealth contagious? Can you “catch” wealth from the people you associate with?

It seems it could. There are a few ways that wealth is contagious.

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Weekly Wisdom: The Most Important Financial Questions

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Answers don’t matter.

That seems to be heresy. But hear me out.

The fact is, unless you know the right questions to ask, answers don’t really help you. Knowing what’s wrong and then applying the right solution is the key to problem solving.

Personal finance is no difference.

In this edition, we”ll let some of the best and brightest minds of the blogosphere ask the most important questions.

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Keeping The Joneses Down: How Envy Can Hurt the Economy and Your Financial Picture

pic by chesterfan1230

Personal finance adherents know about the danger of keeping up with the Joneses. It relates to people competing with each other to have the nicest, newest, biggest, baddest, stuff on the block.

It’s a pretty accurate description.

Ever take a walk around your neighborhood and notice a new car–and, then suddenly, there’s another new one? And another. And another.

This type of financial one-up-manship leads to high debt in the struggle to gain high self-esteem.

But there’s another negative way we handle those damn Joneses. We try to keep the Joneses down.

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