After a few years of reading the famous annual letter from Buffett (tag) to his investors, and three years of following the live Yahoo! stream of the annual meeting in Omaha, last year I shared my impressions for the first time. Here is the second installment.
The greater fool theory of finance says it’s sometimes possible to make money by purchasing overvalued assets (items whose purchase price exceeds their intrinsic value) and reselling them for a higher price later.
This theory states that prices go up when people can sell overvalued securities to the “greater fool,” regardless of whether the securities are overvalued. Suppose one “fool” purchased an overpriced asset, hoping that he could sell it to an even “greater fool” who would profit from it. A system like this can only work if new “greater fools” are willing to purchase the asset at ever-higher prices. Continue reading “The Greater Fool”
Throughout this post, I discuss the relationship between two concepts from the field of Economics(?): the Easterlin paradox and early retirement.
Early retirement is a controversial issue in economics and personal finance. I have written about it in an earlier post. Many Americans consider early retirement more than just a chance to have the most relaxing time of their lives. They can either succeed or drown at a crucial point in their lives from this point.
Easterlin paradox, on the other hand (or coincidently?), explores the relationship between income and happiness, or lack thereof.
Now, in addition to the College Football Rankings that I publish here and I introduced and explained in an earlier post, I moved from a site I dropped (Sportheory.com) into this site a ranking of College Basketball teams calculated with a neural network.
You can sell tradelines to earn money by adding authorized users to your credit card for a set charge. It takes an authorized user about two months to stay on your account, after which you are notified when the user can be removed.
Let’s discuss what tradelines are. How can you sell tradelines and earn cash?
