Everything a rational investor needs to know about buying or renting out a home — The following is an excerpt from The Rational Investor — Available for pre-order now and releasing October 17th, 2022. Confession time. Stocks are not the asset class with the highest risk-adjusted returns. That honor belongs to real estate. That was the finding of a 2017 paper titled “The Rate of…

Are you trying to “win” or “not to lose”? — When faced with an important decision, do you focus on risk or reward? If you are anything like the typical hockey coach in the NHL, you probably focus more on what you stand to lose rather than what you gain from a risky decision. Read this article to the end…

How you can avoid the free dividends fallacy — The rational investor cares about one thing; total investment returns. Total returns for stock market investors = capital gains + dividends — investment fees & taxes All that matters is, what is my account balance? If you have a $100,000 portfolio, the $100,000 is all we should care about. …

$14 margaritas are the new avocado toast — It finally happened. The financial media is cluing that millennials are starting to turn 40 and are no longer a suitable punching bag for society’s favorite pass time — Blaming young people for their money problems. The continued stereotype of the “20-something Millennial hipster eating avocado toast” has become even…

The worst investment advice I’ve heard in 2022 — Some people will say anything to remain in the spotlight. Often “saying anything” involves trying to scare the crap out of you and making outrageous claims without a shred of credible evidence to back up their claim. Too much of the discourse — particularly when it comes to investing —…

Data > Narratives — Jack Bogle and Vanguard basically solved investing for us decades ago. Invest in low-cost index funds that buy the entire stock market, and basically forget about your portfolio until retirement until you one day wake up and discover you're rich. That's why with next to no marketing spend — there…

Debt + volatility = financial disaster — If Bitcoin hopes to survive its current meltdown, it needs much better spokespeople. Bitcoin is a faith-based asset — it has no intrinsic value. The only reason the value of Bitcoin has ever gone up is that more people became interested in buying Bitcoin. This creates an incentive for early…