10 Ways to Invest $1000 (EASY IDEAS FOR BEGINNERS)

Here is the link.

Do I like to be intellectual challenged?

Jan. 26, 2020

Introduction

It is not clear if I can be super smart on more than three areas. I like to see if I can make new choices back in 2001 when I had my first laidoff as a software engineer in Florida, United States.

Why  I did not fall in love with investment on stock?

I did not fall in love with investment on stocks from 1999. I did not spend time to read books. I am not sure if I was young, too many energy. I remembered that I spent whole day to watch Hollywood movies on HBO whole day. I owned a two-bedroom condo, and then I noticed that I was too lonely to live alone.

I remembered that one day I watch more than three movies one by one. I did not spend time to think about carefully about investment, personal finance, how to be a millionaire? What traits should I look into?

How to get started investing: 4 simple steps

Here is the link.

Get started investing! For investing beginners who want to learn how to start investing in the stock market. I break down 4 simple steps on how to get started. Once you understand these basic principles, you'll be well on your way to investing in stocks and knowing exactly how to invest your money.

Case study: design twitter system

Jan. 26, 2020

Introduction

I spent time to work as an interviewer for system design this morning 10:00 AM, I gave out the design question to design twitter. I like to do a short case study for this mock interview.

Case study

I will add more later.

How to make plans on system design in 2020?

Jan. 26, 2020

Introduction

It is time for me to learn as many as possible in 2020. I like to be a great interviewer for system design. I have so many things to learn and I like to find partners in the market, how to work hard and learn by asking questions and giving tips.

My weekly schedule

Here is the schedule for me next week. I start to book interviews as an interviewer for system design.

Financial Goal Setting (HOW TO ACHIEVE BIG MONEY GOALS)

Here is the link.

How We Buy Real Estate In Up & Coming Neighborhoods | Financial Independence With Real Estate

Here is the link.

Dan Bortolotti - Canada couch potato

Here is the link. I like to read over 10 blog post this weekend.

Should I use an ETF that tracks the NASDAQ?

Here is the article.

Case study: January 2020 - My Restful web service learning month

January 26, 2020

Introduction

It is so important for me to learn some web technology as a software programmer. I was so busy but I never have a chance to learn web technologies, so many code to write and so many projects to work on. This January I spent whole month to learn Restful API web service.

Motivations 

I was busy to learn technology this year about restful web service. It is better for me to learn some technologies now, the tenth year at the same job.

I did not learn the importance about learning technology until I went to Vancouver Dialpad onsite in December 2019, and I had system design onsite interview. I like to learn Restful API every day until I can understand and also can rewrite the website, I like to design restful API and make it my first hobby to code in 2020.

Book to read

I was not so good how to learn technologies. One of ideas is to read a book. So I tried a few days but it seemed to me that I am not so good to read a book.

Videos

I tried to learn from videos. It is such a good idea and high quality videos are easy to find. But I do not take notes, and I may not learn very well.

Tutorials

How to make a good living with income $30,000 US dollar last 10 years?

January 26, 2020

Introduction

It is my personal finance research. I like to work on a short research how to make a good living with income $30,000 US dollars last 10 years.

10 years from 2010 to 2020

I also like to talk about how to make a good living with income $30,00 US dollars last 10 years.

Why the QQQ ETF Has Crushed the Competition in 2015

Here is the article.

Facts to review - First time I read the article, five years after it is written.

Amazon

2015 Nov. Amazon stock doubled from Jan. to Nov. in 2015, 6% QQQ ETF, doubling corresponds to about three percentage points of the ETF's year-to-date again.

Amazon web services - revenue jumping 78% to 2 billion mark and making more than half a billion dollars in segment operating income.

Google 

Shares jump about 40% so far this year, Alphabet makes up about 9% of the ETF's assets. Alphabet has boosted the QQQ ETF's return by two to three percentage points.

Facebook 

10 ideas to invest $10,000 dollars in 2020

January 26, 2020

Introduction

It is my personal finance research. I do think that I have to learn to invest, not speculate. But I never have chance to show my love of Microsoft, Amazon, Facebook, Fortinet, Docusign, ROSS stock last 10 years. How about I invest $10,000 dollars on those stocks?

10 ideas to look into 

Case study: Design twitter as an interviewer

January 26, 2020

Introduction

It was my 10:00 AM mock interview. I gave the system design interview to design twitter as an interviewer.

Case study

I like to write a short case study on this mock interview. I will write more later.

How to Pick Stocks to Invest In (LOOK FOR THESE 4 THINGS)

Here is the link.

HOW TO PICK STOCKS TO INVEST IN // A 4-point checklist for picking good stocks to buy. Stock analysis really doesn't have to be hard when you know what to look for in a stock. This is a great stock investing video for beginners, where you'll learn how to analyze stocks and how to pick stocks to buy.

How hard to make $10,000/ year as a second job in Canada?

Jan. 25, 2020

Introduction

It is my personal finance research. I never tried to get a second job from 2010 to 2019, so I am curious to know how I can have a hustle to make $10,000/ year as a second job? How hard it will be?

Canada - Vancouver area

I have work permit as a permanent resident from 2010 April once I landed in Canada. I never have to worry about work permit, and I did get Canada citizenship as quick as possible in 2014 December.

I landed in Canada in April 2010, at the age of 44 years old. I have some attitude problem, I do not try to find a second job, and also I do not exhaust all options I have to make passive income using my home equity line from USA, and I did not invest my savings in Canada.

As a single person family, I do not know how hard it is to survive and then spend multiple times on vacation to waste money on food, parties and extra clothes in China.

I just could not believe that it took me 8 years to pay off $38,000 US dollar home equity line, and also I did not spend time from April 2010 to 2019 to learn how to invest and just put back my US retirement fund back to stock market until May 2019.

What I Learned at Columbia Business School

Here is the link.


Columbia's Value Investing Seminar with "legendary" Value Investors. Before everyone involved retires, I want to share what I learned from these great speakers in early 2008: 0:54 Bill Nygren 2:33 Mason Hawkins 4:52 Li Lu 8:07 Beth Lilly 10:10 Bob Bruce 13:42 Doug Millett 17:47 Tom Russo 18:25 Glenn Greenberg 19:55 Andrew Weiss 21:45 Seth Klarman

Robert Bruce speaks before the EMBA students at Columbia Business School - 2008

Here is the article.

Li Lu - American investor

Here is the link.

Mohnish Pabrai: "Intensive Stock Research Can Be Injurious to Financial Health" | Talks at Google

Here is the link.

In this talk, Mohnish Pabrai discusses how the plethora of deeply entrenched biases and flawed evolutionary brain wiring makes us prone to make plenty of mistakes when picking stocks. Specifically, the more time we spend analyzing a given business, the more likely we are to like it and invest in it. But if we don’t spend time studying a business, how are we expected to understand its prospects and likely future? This strong commitment bias is an important reason why most investment managers have trouble beating the index. Mohnish will lay out the origins of this bias problem and a few hacks to get around it.

15153 FRASER HIGHWAY 205, Surrey, British Columbia V3R3P2

Actionable Items 

I like to figure out what I did from 2010 to 2017. I worked over six years full time, but my savings is less than $20,000 dollars; I did not learn to invest and did not invest anything.

Property Summary for 15153 FRASER HIGHWAY

Property Type

 

Condo

MLS® Number

 

R2430849

Year Built

 

1977

Date Added

 

24 January 2020

Property Style

 

Ranch

Stories

 

1

Basement

 

None

Neighborhood

 

Fleetwood

Postal Code

 

V3R3P2

Description for 15153 FRASER HIGHWAY

WHY RENT??? Check this out...400 SF. Studio, next to future skytrain station at a ridiculous price. Features private deck for summer time enjoyment, no rental restrictions, great for first time buyer or investment. Close to shopping, transit, restaurants, recreation and parks. Priced for very quick sale. Call now. (id:1937)

$199,800

208  Jan. 30, 2017 $100,000

216  Feb. 2, 2018   $210,000

210  April 26, 2018 $207,000

Mohnish Pabrai's Top 10 Rules For Success

Here is the link.

1. Minimize risk
2. Define your market
3. Stay within your circle of competence
4. Don't sell what you wouldn't buy
5. Wait for the right pitch
6. Put yourself in their shoes
7. Focus on marketing
8. Create a competitive advantage
9. Have flexibility 
10. Pay attention to feedback

"You don't make money when you buy stocks. You don't make money when you sell stocks. You make money by waiting."
Charlie Mungle

Dhandho Investor Book Summary (ACHIEVE HIGH RETURNS W/ LOW RISK)

Here is the link.

10 reasons I failed to start my personal finance research

January 25, 2020

Introduction

It is my personal finance research. I like to figure out what are 10 reasons I failed to work on my US 401 K and IRA from 2010 to 2019, I did not start my personal finance research until Nov. 2019.

10 reasons

I like to write down 10 reasons and also push myself to learn more about personal finance, and build a community around myself to build wealth and grow rich.

1. First, from 1999 to 2009, I did not spend over 100 hours to study personal finance, investment; I never review my credit card statements, learned how to use Excel sheet to calculate my expense. My foundation of business analysis was too weak;

2. I made mistakes in investment. I sold VIGRX in 2001 to have 30% loss; I did not learn anything until 2009 I sold everything in stock market in 15 years low; What I did was to ignore the need to learn how capitalism works;

3. My christian belief, and my church activities, I did not push myself to learn basic skills how to do book keeping, and invest time to read investment books at all. My attitude to build wealth and become rich is wrong, I still was in hope to get back to high paid software engineer job;

4. I was under stress from 2010 to 2019. I got addicted to have road trip to USA to do cloth shopping;

5. I spend a few years to play tennis and tried to lose weight. I did that from 2012 to 2018.

6. I worked on Leetcode from 2015 to 2019, and worked on my coding blog;

7. Whatever I do, I should always keep study how to build wealth and grow rich every year;

8. I spent over three years to learn how to file Canada immigration application for my nephew from 2016 to 2019. I should always put my own goal first;

9. I always think about being nice and also practice my Christian belief; My mindset is to live a life from a paycheck to a paycheck.

10. I do not learn and spend time to watch youtube.com video, instead of watching Netflix for entertainment.

Overall, I dot not push myself to advance myself in terms of reading skills, and other challenging activities like contests, and other activities like blogging.

Best Short Term Investments 2019 (EARN UP TO 18% WITH LOW RISK)

Here is the link.

When To Buy Stocks (TIMING THE MARKET PERFECTLY)

Here is the link.

System design for Twitter

Here is the article on medium.com.

306 14355 103 Avenue, Surrey, BC V3T 5V5

$289,900

About This Home

WOW!! Prime N. Surrey location. Claridge Court complex. Unique 1 bedroom and den unit. Features include, laminate floors throughout, formal living area with door to sundeck and gas fireplace, large kitchen with sink overlooking pass thru to dining area, large master bedroom and a den for additional living space. A very convenient local close to Skytrain, Surrey Centre Mall, Surrey Rec Centre yet located off the busy path on a quiet side street. The building has been Rain-screened in 2004 adding to your peace of mind. Locker, 1 parking stall and a secure bike room. Unit faces West overlooking the openness of the street behind. Needs updating and some work.

Snapshot

• Price:
 
• $289,900

• Bedrooms:
 
• 1

• Full Baths:
 
• 1

• Square Footage:
 
• 729

• Year Built:
 
• 1995

• Listing ID #:
 
• R2421360

• Street Address:
 
• 306 14355 103 Avenue

• City:
 
• Surrey

• Province:
 
• British Columbia

• Postal Code:
 
• V3T 5V5

• Community:
 
• North Surrey

• Subarea:
 
• Whalley

• Listing Status:

Building

• Age Of Dwelling:
 
• 25

• Amenities:
 
• Bike Room, Club House, Elevator, In Suite Laundry, Wheelchair Access

• Miscellaneous Features:
 
• Central Location, Recreation Nearby

• Number Of Fireplaces:
 
• 1

• Stories:
 
• 1

• Style:
 
• Inside Unit, Upper Unit

• Total Building Square Footage:
 
• 729

• View:
 
• Yes

• Year Built:
 
• 1995

Money Association Fee: 253.17 Property Taxes: $1,419 Tax Year: 2019

Remember the 'All-Weather' Portfolio? It's Having a Killer Year

Here is the article.

Ray Dalio’s All weather portfolio (quick-start guide 2020)

Here is the link.

The reason he chose those assets goes into his theory on economic “seasons.” According to Dalio, there are four things that affect the value of assets:

1. Inflation. The increase in prices for goods and services — and the drop in purchasing value of a currency.
2. Deflation. The decrease in prices for goods and services.
3. Rising economic growth. When the economy flourishes and grows.
4. Declining economic growth. When the economy diminishes and shrinks.

Based on these elements, Dalio says that we can then expect four different seasons that the economy can go through. They are:

1. Higher than expected inflation (rising prices).
2. Lower than expected inflation (or deflation).
3. Higher than expected economic growth.
4. Lower than expected economic growth.

If you want to build your own All Weather Portfolio but don’t know where to start, don’t worry. Here’s a suggestion for comparable securities that you can invest in yourself (courtesy of Nasdaq.com):

• 30% Vanguard Total Stock Market ETF (VTI)
• 40% iShares 20+ Year Treasury ETF (TLT)
• 15% iShares 7 – 10 Year Treasury ETF (IEF)
• 7.5% SPDR Gold Shares ETF (GLD)
• 7.5% PowerShares DB Commodity Index Tracking Fund (DBC)

Recession Proof Portfolio (BULLETPROOF INVESTING STRATEGIES)

Here is the link.

8:00 - 8:23

All weather portfolio
30%   VTI
40%   TLT
15%   IEF
7.5%  GLD
7.5%  Commodity  DBC

Caroline Wozniacki | The Journey to My First Grand Slam

Here is the link.

Tennis Stars Say Farewell to Caroline Wozniacki

Here is the link.

Wozniacki: Thank you and goodbye | Australian Open 2020

Here is the link.

How to start life with self-learner mindset?

Jan. 24, 2020

Introduction

It is my personal finance research. I learned the mistake I made on personal finance, I did not spend time to work on my USA 401 K and retirement account from 2009 to Jan. 2019. I like to work on a short research how to start life with self-learner mindset.

Challenges

I like to figure out why I am afraid to learn something by myself. How to start life with self-learner mindset?

It is important for me to learn that knowledge is power. If I like to live a rich and wealth life, I should spend time early to invest myself to learn how to do a good research, work on money, personal finance, investment and behavior economics study. I should start early, and work on so many things early and build over at least 10 years experience.

Portfolio - investment classroom - course level 500

Portfolio - investment classroom - course level 400

Portfolio - investment classroom - course level 300

Portfolio - investment classroom - course level 200

Portfolio - investment classroom - course level 100

Here is the link.

The Error-Proof Portfolio: Find the Right Stock/Bond Mix

Here is the article.

Helping you create a sturdy financial plan, 30 minutes at a time, is the focus of my recent book, 30-Minute Money Solutions. How much you save is the biggest determinant of whether you meet your financial goals, but setting an appropriate asset allocation is easily the second-most important factor. The following chapter, on arriving at an appropriate stock/bond/cash mix, is an excerpt from the book.

SPECIAL REPORT Morningstar.com's Asset Allocation Week

Here is the article.

Day 1: Set Your Allocation | April 5
Asset allocation is the biggest determinant of how your portfolio behaves. Get off on the right foot, plus get tips for low-minimum investing, asset location, and more.

• Find the Right Stock/Bond Mix
• Build a Well-Diversified Portfolio Without a Lot of Assets
• Find Your Allocation Baseline
• Classroom: Steps to a Suitable Portfolio
• What Goes Where? The Art of Asset Location

Rob Arnott on the Tactical Approach to Allocation - Morningstar Video

Research Affiliates' Rob Arnott on who should implement a tactical approach and the triggers for tactical practitioners.

Here is the link.

Valuation, valuation, valuation. Similar to real estate, location, location location.

The secret to market timing

Here is the link.

Stock Investors to Earn Only 1% Over Inflation for Next 10 Years, Rob Arnott Says

Here is the link.

What Are We Doing to Our Young Investors?

Here is the article.

KEY POINTS

1. With target date funds (TDFs) prevalently the default choice in defined contribution (DC) plans, young workers’ equity concentrations are growing ever higher.

2. Young workers, who are more likely than older workers to lose their jobs in a recession, frequently cash out part or all of their DC assets to meet living expenses during a period of unemployment.

3. Young workers would be well advised not to invest in TDFs until their less risky “starter portfolio” reaches a certain minimum balance, for example, six months’ income.

Two Asset Allocation Rules You Need To Follow At Any Age

Here is the article.

Indeed, a look at the three largest target date fund providers – Fidelity, Vanguard and T. Rowe Price– shows that they all hold much closer to ‘125 – Your Age.’ For example, these three target date funds allocate 90% in stocks for a 30-year old, and about 75-85% in stocks for a 50-year old.

The Arithmetic of “All-In” Investment Expenses

Here is the article.

10 Reasons Why Asset Allocation Is Everything For Retirement Saving

Here is the article.

Playing the Long Game – Evidence-Based Investing (Part 1)

Here is the article.

The Hidden Risk of Passive and Index Hugging

Here is the article written by Rick Bookstaber.

Finding the right asset allocation is what counts

Here is the article.

Most important is asset allocation, which explains more than 90 percent of an investment’s variability, according to an oft-cited study by Gary Brinson, Randolph Hood and Gilbert Beebower from 1986.

Asset allocation research

Jan. 22, 2020

Introduction

I like to look into asset allocation research, and I like the statement: Asset allocation is thus the only factor affecting your investments that you can actually influence. No one can achieves long-term success in the former (market timing), and almost nobody in the latter (selection of a good stock/bond).

Research review of asset allocation

In the late 1980s, Gary Brinson, a noted money manager and financial analyst in the US, along with his colleagues, published two comprehensive research studies of 82 large pension funds. They concluded that asset allocation accounted for over 90% of the return variability among the funds (in other words, 90% of the difference in return among two pension funds was due to their asset allocation strategies), with a less than 10% contribution from market timing and actual stock and bond selection.

Another research done in 1996 pegged that a long term portfolio’s performance is almost 92% determined by asset allocation and less than 7% by market timing and individual stock or bond selection combined (see chart below).

In other words, what these studies indicate is that asset allocation policy is 10 times as important as stock picking and market timing combined. In recent years, many observers and investment experts have suggested that the 90% figure is too high; perhaps asset allocation accounts for only 50% of return variability.

You see, such arguments completely miss the point. Market timing and selecting a good stock or bond is obviously important. The only problem is that nobody achieves long-term success in the former (market timing), and almost nobody in the latter (selection of a good stock/bond).

Asset allocation is thus the only factor affecting your investments that you can actually influence. Finding the right balance between high risk (like stocks) and low risk (like bonds or cash) investments is the key to managing risk in a portfolio. That’s the power of asset allocation in your hands.

Risk

We all worry about the market risk, economic risk, political risk, and inflation risk. But we never give an iota of thought on what we can call the ‘personal risk’?

David Darst Author, The little book that saves your assets

Richard Bookstaber - Risk management

Here is the wiki article about Richard Bookstaber.

Does Asset Allocation Still Work?

Here is the link.

Does asset allocation still work? After last year’s devastating market losses, investors are justifiably rethinking their investment mix. What’s the best asset allocation model? Consuelo asks Morgan Stanley’s asset allocation master, David Darst, noted institutional risk manager Richard Bookstaber and award-winning financial planner, Mark Cortazzo. WEALTHTRACK #512 broadcast on November 5, 2010.

Kenneth Fisher - Wikipedia

Here is the article I like to spend 10 minutes.

Fisher has authored eleven investing books: Super Stocks (1984), The Wall Street Waltz (1987), 100 Minds that Made the Market (1993), The Only Three Questions That Count (2006), The Ten Roads to Riches (2008), How To Smell A Rat (2009), Debunkery (2010), Markets Never Forget (2011), Plan Your Prosperity (2012), The Little Book of Market Myths (2013), and Beat The Crowd (2015). The Only Three Questions That Still Count, The Ten Roads to Riches, How to Smell a Rat, and Debunkery were all New York Times bestsellers.

Bill Ackman's Rules For Investing Like a Maverick

Here is the link.


Activist rule #1 Make a bold call that nobody believes in
Activist rule #2 When all the money goes one way go the other way
Activist rule #3 Do your homework

Best advice Ackman has gotten

You do not need to be old to be right

Asset allocation for young investors

Here is the article.

Why asset allocation matters

The goal of asset allocation is to get a return on your money while managing risk.

There will, of course, always be market risk—the risk that an entire market will decline. We saw a good example of market risk from the fall of 2008 to the spring of 2009. Every asset class declined across the board. Stocks, bonds, mutual funds, and real estate all took a nose dive. Money market funds—considered the safest of safe investments—even lost money. The bottom line is you can’t eliminate risk entirely. (And leaving your money is a savings account isn’t the answer. Over time, inflation will outpace the measly interest rates savings accounts offer and leave you with a negative return on your money.)

The good news is that with smart asset allocation, you can reduce some investing risks, specifically unsystematic risk (the risk that lies within one particular investment).

Investing in any individual stock or bond leaves you vulnerable to the risk that the particular investment could go down in value. Diversification eliminates this risk and gives you the opportunity to make money with one asset class even while another declines.

Danny has summer break - May 8 to August 9

Jan. 22, 2020

Introduction

It is tough for me to plan ahead my schedule in 2020. I like to invite my niece to visit Vancouver, she will have summer break from May 8 to August 9. She is attending high school in Toronto area.

Systems Design: Twitter Search

Here is the blog.

Case study: Design twitter system design interview

January 22, 2020

I like to write a short case study about the system design interview as an interviewer on January 21, 2020. I asked how to design twitter.

Case study

I will add more later.

​2020交大春晚特别报道

Here is the article.

I attended the event, and I had great time and enjoyed so many things to celebrate Chinese new year 2020.

Here's What Recruiters And CEOs Really Think About The Value Of An MBA

Here is the article.

When Is an MBA Worth It?

Here is the article.

Sound the Alarm! Price Alerts Now Available on TD Ameritrade Mobile

Here is the article.

12 surprising benefits of writing down your thoughts and feelings

Here is the article.

1. It clears your mind and readies it for decision-making

2. It clarifies underlying emotions

3. It gives you a record of your development.

4. You gain a sense of fulfillment

5. It helps you to enter the unknown

6. It helps you to take action

7. Writing makes room for higher levels of thinking to take place

8. Writing gives you time and space to process deep-seated emotions

9. Writing lets you tell your story

10. Writing helps you to feel like you’ve accomplished something

11. Writing lets you dream bigger than you would if you were saying things out loud

12. Writing helps you create a routine in your life

How To Rebalance Your Portfolio

Here is the article.

Consider rebalancing after big market movements

When a market goes up or down by 5 percent or more, your allocation will likely fall out of balance. So if you want to be more proactive, you might also consider rebalancing your portfolio anytime the markets move dramatically, such as the ups and downs we’ve seen this January.

6 Steps for Dealing With Adult Sibling Rivalry How to reset your family system to address lingering hard feelings.

Here is the article.

J. P Morgan 2020

January 21, 2020

Introduction

I like to look into more about this Chinese version J. P. Morgan 2020. I like to write a small case study about the report.

2019 12 month review

MSCI index

How to Dive for Swimming

Here is the link.

Recap

• Use grab or track start
• Both feet forward
• One foot forward
• Wrap toes around edge
• Hips high, look down
• On beep, learn forward
• Hands in streamline
• Point hands to flags

Safe Diving

Here is the link.

How To Dive For Swimming | A Step By Step Guide

January 20, 2020

Introduction

Today I went to swimming indoor pool, a swimmer likes to dive, and he also showed me how kids learn how to dive. So I wore life jacket and learned to dive a few times.

How to dive?

I like to learn how to dive, here is the video.

2020 global M&A outlook - Navigating a period of uncertainty - J.P.Morgan

January 20, 2020

I like to spend 20 minutes to go over the article. Here is the pdf download link.

Bill Ackman's Greatest Hits and Misses

Here is the link.

Bill Ackman: Pershing Square, hedge funds & learning from your mistakes

Here is one hour interview I like to watch.

"How you deal with adversity that determines your ultimate success, as opposed to how you deal with success determines your ultimate success"

The Mindset of a BILLIONAIRE INVESTOR | How Bill Ackman Makes His MONEY

Here is the link.

Bill Ackman's 10 rules for success

1. Overcome adversity 
2. Study success
3. Invest well
4. Be director
5. Be confident
6. Contribute
7. Deal with criticism
8. Learn your craft
9. Don't follow the herd
10. Give opportunities

Bruce Berkowitz - Executive in Residence - 11/8/2012

Here is the video I like to spend 40 minutes to watch.

Bruce R. Berkowitz - Wikipedia

Here is the article.

Here is the article I found his net worth.

22. Bruce R. Berkowitz

Where he lives: Miami (seasonal).

Net worth: $500 million.

Source: Fairholme Capital Management, LLC.

How he made his money: Investment management.

The story: Bruce R. Berkowitz, 56, is the founder, managing member and chief investment officer of Fairholme Capital Management. He has a concentrated equity investment style, making big bets on relatively few stocks that most investors avoid. Purchases of stock in Bank of America and American International Group, or AIG, in 2011 helped to produce handsome 2013 returns on investment in his $8.8 billion-asset Fairholme Fund, according to trade publication Institutional Investor.

Berkowitz, a Miami resident since 2006, said in an email exchange that “Miami has all the resources we need, plus we get to live and work in a beautiful environment. Our tag line is ‘Ignore the Crowd,’ and our location here helps us maintain our distance and independence from the chatter of Wall Street.”

Berkowitz earned a bachelor of arts degree in economics from the University of Massachusetts in 1980. He is chairman of the board of the St. Joe Company, a publicly held Florida-based real estate developer. r of the Decade” in 2010.

Berkowitz said in an email that he advises people getting into business that any industry they find appealing has promise.

“It doesn’t matter what you do, if you really like it,” he said. “To be successful requires huge effort. Twenty-four/seven for decades is the definition of instant success. So you’ve got to love what you do, and if you don’t, try something else.”

Mark Sellers, Intelligent Investor

Here is the article.

What I like to do is to train myself, and understand better about Mark Sellers, and how a hedge fund manager thinks. I learn something from Mark Sellers's talk to Harvard MBAs.

People don't like short term pain even if it would result in better long-term results

January 19, 2020

Introduction

It is such a good statement, I cannot believe that I am the person and I did the silly thing. The statement is the following: People don't like short term pain even if it would result in better long-term results. The topic is about "The ability to live through volatility without changing your investment thought process".

Volatility

They equate short-term volatility with risk. This is irrational; risk means that if you are wrong about a bet you make, you lose money. A swing up or down over a relatively short time period is not a loss and therefore not risk, unless you are prone to panicking at the bottom and locking in the loss.

But most people just can't see it that way; their brains won't let them. Their panic instinct steps in and shuts down the normal brain function.

I would argue that none of these traits can be learned once a person reaches adulthood. By that time, your potential to be an outstanding investor later in life has already been determined.

It can be honed, but not developed from scratch because it mostly has to do with the way your brain is wired and experiences you have as a child. That doesn't mean financial education and reading and investing experience aren't important.

Those are critical just to get into the game and keep playing. But those things can be copied by anyone.

Actionable Items

I need to look into two concepts and their comparison. One is to equate short-term volatility with risk.