Some great money reads from around the web.
I have written before on Monevator about my in-built thrifty disposition, and how it probably veers towards tightness.
For this reason I was thrilled to see The Accumulator explaining how he saves money this week. It’s vitally useful information that I just can’t share from experience.
My problem is spending it!
I have a soft spot for occasional black cabs after midnight and good food. Otherwise, the only thing I find easy to buy are equities.
Perhaps I’m like Warren Buffett in that regard – he used to refuse his wife a new sofa on the grounds that it would cost $1 million, after taking compound interest into account. (Alas I don’t share his prodigious mental abilities, and I can’t quite match his track record. At least not yet…)
This week I was reminded why equities are worth splashing out on through a short Forbes article. In it we learn that if you’d:
…skipped the purchase of a $5,700 Apple PowerBook G3 250 in 1997 and put the money into Apple stock, and your shares would now be worth $330,563.
Even relatively new customers can find reasons for regret. If you’d skipped the purchase of an Apple Xserve G5 in 2005 for $3,999 and bought Apple stock instead, your investment would now be worth $33,877.
The data is based on Kyle Conroy’s clever table of Apple products versus stock gains. It’s been around for a while, but now that Apple is the second most valuable company in the world, the numbers are becoming crazy. As someone who only ever buys Apple-made computers, I can relate.
Obviously few investments will do as well as Apple. Index investors don’t even try to catch the best ones, but instead sensibly settle for market returns. Either way, over time buying equities will make you richer, not poorer.
I’m getting a little better at spending money as I get older. One of the scant consolations of seeing a close family member becoming mentally disabled overnight is it puts everything into perspective.
But I’m not throwing money at toys for boys, and I’m not convinced by the spend it on experiences argument, either.
I’d have failed as a human being if the only thing that gave me pleasure was receiving my dividend cheques, as J.D. Rockefeller famously quipped.
But on a relative basis, I’m happy to save my buyer’s remorse for consumables, and my retail therapy for my stock broking account.
From the money blogs
- Buffett on gold fondling and elephant hunting – Investor Caffeine
- Quit sniveling! Making money doing a job you hate – Len Penzo
- Planning for uneven retirement spending – Oblivious Investor
- Five powerful ways to teach kids about money – Wealth Pilgrim
- Taking some quick and some slow profits – UK Value Investor
- There are limits to human ingenuity – Simple in Suffolk
- Pondering my portfolio – A Grain of Salt
- Four screens for UK stock investors – iii blog
- Market confidence, tricks and placebos – The Psy-Fi blog
- 5 tips on evaluating your investment performance – The Digerati Life
- 10 ways to save money on groceries – Canadian Finance blog
- Dumb fund ideas: First Trust Smartphone Index – Amateur Asset Allocator
Mainstream money and investing articles
- Why rich people do stupid things – Motley Fool
- Forbes has updated its list of 1,210 billionaires – Forbes
- Regional income inequality: UK most divided – The Economist
- Don’t pump up the oil bandwagon – Wall Street Journal
- Roundup of the various new retail-friendly corporate bonds – FT
- Commission surges ahead of ban [Gotta love financial advisers] – FT
- [Some] fund managers slash fees for private investors – FT
- UK mortgage lending falls 29% in January – Telegraph
- Public sector pension reforms: Who’ll lose out? – Telegraph
- In praise of Nick Train [a fund manager I much admire] – Independent
- Barclays’ 3.25% cash ISA is current market leader – Independent
- How to save money on motoring – The Guardian
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