CDZ Cash is King

[william the wie]

I almost lost it completely in the stock market forum earlier today. The Fed announces a rate hike. That means you can get more interest, dividend and rent in cash per dollar of investment and this is bad how? Do you think you are going to get out at the top and turn your woulda, shoulda coulda capital gains into spedable cash? Dream on.

Warren Buffett doesn't think he's smart enough to do that. Neither does Bill Gates nor the Waltons nor most other billionaires. If you disagree with my assessment why not get really rich fast by teaching these monetary morons by showing them how to make unrealized capital gains more valuable than cash returns.

 

[miketx]

 

[DarkFury]

Well the rate hike will raise my income on cash on hand {bank} but the pay out is still so low its not worth it. If we were to have a "bank holiday" like the one in Greece just a 10% trim could wipe out seven years of sitting with a keystroke.

 

[william the wie]

Well the rate hike will raise my income on cash on hand {bank} but the pay out is still so low its not worth it. If we were to have a "bank holiday" like the one in Greece just a 10% trim could wipe out seven years of sitting with a keystroke.

which is exactly why I prefer to write options pm liquid assets.with low volatility. My premiums income reduces the cost basis of my investment rather quickly,.25 month payback. generally, and at that point I stop caring. If I don't have better prospects I leave the position alone, if something better is on offer I liquidate and go elsewhere.

 

[DarkFury]

Well the rate hike will raise my income on cash on hand {bank} but the pay out is still so low its not worth it. If we were to have a "bank holiday" like the one in Greece just a 10% trim could wipe out seven years of sitting with a keystroke.

which is exactly why I prefer to write options pm liquid assets.with low volatility. My premiums income reduces the cost basis of my investment rather quickly,.25 month payback. generally, and at that point I stop caring. If I don't have better prospects I leave the position alone, if something better is on offer I liquidate and go elsewhere.

Just look into Lever Bros. They make soap/shampoo, laundry soap and tooth paste and deodorant. Its a low return but safer then a bank.

Every civilization wants to be clean so its an ever growing market. Its a mass market object found from truck stops to every Walmart/ dollar store in the country. Risk is non existent and use is steady.

 

[Indeependent]

I almost lost it completely in the stock market forum earlier today. The Fed announces a rate hike. That means you can get more interest, dividend and rent in cash per dollar of investment and this is bad how? Do you think you are going to get out at the top and turn your woulda, shoulda coulda capital gains into spedable cash? Dream on.

Warren Buffett doesn't think he's smart enough to do that. Neither does Bill Gates nor the Waltons nor most other billionaires. If you disagree with my assessment why not get really rich fast by teaching these monetary morons by showing them how to make unrealized capital gains more valuable than cash returns.

You are actually concerned about the people who manipulate their Stock Value on a daily basis.
I honestly don't think they're sweating ANYTHING over a slight variance in the Interest Rate.

 

[william the wie]

Well the rate hike will raise my income on cash on hand {bank} but the pay out is still so low its not worth it. If we were to have a "bank holiday" like the one in Greece just a 10% trim could wipe out seven years of sitting with a keystroke.

which is exactly why I prefer to write options pm liquid assets.with low volatility. My premiums income reduces the cost basis of my investment rather quickly,.25 month payback. generally, and at that point I stop caring. If I don't have better prospects I leave the position alone, if something better is on offer I liquidate and go elsewhere.

Just look into Lever Bros. They make soap/shampoo, laundry soap and tooth paste and deodorant. Its a low return but safer then a bank.

Every civilization wants to be clean so its an ever growing market. Its a mass market object found from truck stops to every Walmart/ dollar store in the country. Risk is non existent and use is steady.

Well the rate hike will raise my income on cash on hand {bank} but the pay out is still so low its not worth it. If we were to have a "bank holiday" like the one in Greece just a 10% trim could wipe out seven years of sitting with a keystroke.

which is exactly why I prefer to write options pm liquid assets.with low volatility. My premiums income reduces the cost basis of my investment rather quickly,.25 month payback. generally, and at that point I stop caring. If I don't have better prospects I leave the position alone, if something better is on offer I liquidate and go elsewhere.

Just look into Lever Bros. They make soap/shampoo, laundry soap and tooth paste and deodorant. Its a low return but safer then a bank.

Every civilization wants to be clean so its an ever growing market. Its a mass market object found from truck stops to every Walmart/ dollar store in the country. Risk is non existent and use is steady.

I pretty much agree and those are the kinds of issues I like to write options on.

 

[william the wie]

I almost lost it completely in the stock market forum earlier today. The Fed announces a rate hike. That means you can get more interest, dividend and rent in cash per dollar of investment and this is bad how? Do you think you are going to get out at the top and turn your woulda, shoulda coulda capital gains into spedable cash? Dream on.

Warren Buffett doesn't think he's smart enough to do that. Neither does Bill Gates nor the Waltons nor most other billionaires. If you disagree with my assessment why not get really rich fast by teaching these monetary morons by showing them how to make unrealized capital gains more valuable than cash returns.

You are actually concerned about the people who manipulate their Stock Value on a daily basis.
I honestly don't think they're sweating ANYTHING over a slight variance in the Interest Rate.

You lack a sarcasm detector, sir.

 

[eddiew]

I almost lost it completely in the stock market forum earlier today. The Fed announces a rate hike. That means you can get more interest, dividend and rent in cash per dollar of investment and this is bad how? Do you think you are going to get out at the top and turn your woulda, shoulda coulda capital gains into spedable cash? Dream on.

Warren Buffett doesn't think he's smart enough to do that. Neither does Bill Gates nor the Waltons nor most other billionaires. If you disagree with my assessment why not get really rich fast by teaching these monetary morons by showing them how to make unrealized capital gains more valuable than cash returns.

Announced a rate hike???? you mean a POSSIBLE hike?

 

[DarkFury]

Well the rate hike will raise my income on cash on hand {bank} but the pay out is still so low its not worth it. If we were to have a "bank holiday" like the one in Greece just a 10% trim could wipe out seven years of sitting with a keystroke.

which is exactly why I prefer to write options pm liquid assets.with low volatility. My premiums income reduces the cost basis of my investment rather quickly,.25 month payback. generally, and at that point I stop caring. If I don't have better prospects I leave the position alone, if something better is on offer I liquidate and go elsewhere.

Just look into Lever Bros. They make soap/shampoo, laundry soap and tooth paste and deodorant. Its a low return but safer then a bank.

Every civilization wants to be clean so its an ever growing market. Its a mass market object found from truck stops to every Walmart/ dollar store in the country. Risk is non existent and use is steady.

Well the rate hike will raise my income on cash on hand {bank} but the pay out is still so low its not worth it. If we were to have a "bank holiday" like the one in Greece just a 10% trim could wipe out seven years of sitting with a keystroke.

which is exactly why I prefer to write options pm liquid assets.with low volatility. My premiums income reduces the cost basis of my investment rather quickly,.25 month payback. generally, and at that point I stop caring. If I don't have better prospects I leave the position alone, if something better is on offer I liquidate and go elsewhere.

Just look into Lever Bros. They make soap/shampoo, laundry soap and tooth paste and deodorant. Its a low return but safer then a bank.

Every civilization wants to be clean so its an ever growing market. Its a mass market object found from truck stops to every Walmart/ dollar store in the country. Risk is non existent and use is steady.

I pretty much agree and those are the kinds of issues I like to write options on.

Just watch the buy and sell daily for a week. A LOT of investors "park" there.

 

[Indeependent]

I almost lost it completely in the stock market forum earlier today. The Fed announces a rate hike. That means you can get more interest, dividend and rent in cash per dollar of investment and this is bad how? Do you think you are going to get out at the top and turn your woulda, shoulda coulda capital gains into spedable cash? Dream on.

Warren Buffett doesn't think he's smart enough to do that. Neither does Bill Gates nor the Waltons nor most other billionaires. If you disagree with my assessment why not get really rich fast by teaching these monetary morons by showing them how to make unrealized capital gains more valuable than cash returns.

You are actually concerned about the people who manipulate their Stock Value on a daily basis.
I honestly don't think they're sweating ANYTHING over a slight variance in the Interest Rate.

You lack a sarcasm detector, sir.

I'm not being sarcastic.
A 3 month shift in Rate that might affect you profoundly will NOT affect the aforementioned Billionaires.

 

[320 Years of History]

That means you can get more interest, dividend and rent in cash per dollar of investment and this is bad how?

??? I don't know what point you are trying to make....

Interest is nothing more or less than the price of money. A rise or drop in interest rates is not bad or good in an absolute sense. It's bad if one is a borrower. It's bad if the interest rate on one's liabilities varies in direct proportion to interest rates. It's good if one is a lender. It's good if the interest rate on one's receivables vary in direct proportion to interest rates.

 

[william the wie]

Then why do so many companies and wealthy families avoid debt?

 

[william the wie]

I almost lost it completely in the stock market forum earlier today. The Fed announces a rate hike. That means you can get more interest, dividend and rent in cash per dollar of investment and this is bad how? Do you think you are going to get out at the top and turn your woulda, shoulda coulda capital gains into spedable cash? Dream on.

Warren Buffett doesn't think he's smart enough to do that. Neither does Bill Gates nor the Waltons nor most other billionaires. If you disagree with my assessment why not get really rich fast by teaching these monetary morons by showing them how to make unrealized capital gains more valuable than cash returns.

You are actually concerned about the people who manipulate their Stock Value on a daily basis.
I honestly don't think they're sweating ANYTHING over a slight variance in the Interest Rate.

You lack a sarcasm detector, sir.

I'm not being sarcastic.
A 3 month shift in Rate that might affect you profoundly will NOT affect the aforementioned Billionaires.

you don't consider massive fluctuations in wealth material?

 

[Indeependent]

I almost lost it completely in the stock market forum earlier today. The Fed announces a rate hike. That means you can get more interest, dividend and rent in cash per dollar of investment and this is bad how? Do you think you are going to get out at the top and turn your woulda, shoulda coulda capital gains into spedable cash? Dream on.

Warren Buffett doesn't think he's smart enough to do that. Neither does Bill Gates nor the Waltons nor most other billionaires. If you disagree with my assessment why not get really rich fast by teaching these monetary morons by showing them how to make unrealized capital gains more valuable than cash returns.

You are actually concerned about the people who manipulate their Stock Value on a daily basis.
I honestly don't think they're sweating ANYTHING over a slight variance in the Interest Rate.

You lack a sarcasm detector, sir.

I'm not being sarcastic.
A 3 month shift in Rate that might affect you profoundly will NOT affect the aforementioned Billionaires.

you don't consider massive fluctuations in wealth material?

To people like us? Yes.
To Gates and Buffett? No.

 

[william the wie]

Both have seen major reductions of their wealth in recent months and then upturns.Since their subordinates are paid in proportion to their boss's wealth it does make a difference.

 

[Indeependent]

Both have seen major reductions of their wealth in recent months and then upturns.Since their subordinates are paid in proportion to their boss's wealth it does make a difference.

Must be a bitch to lose and gain a few billion a year.
HOW DO they cope?
And by the way, Gates pretty much only hires Indian Business Visas and low balls them anyway.

 

[320 Years of History]

Then why do so many companies and wealthy families avoid debt?

???

I don't know any companies that avoid debt, although plenty of them, most of them, avoid unnecessary debt or debt that doesn't pay to assume. Debt, both short and long term, is an important tool in financing all sorts of business objectives, and well managed businesses routinely use debt. Look at any company's balance sheet and you'll find debt in the section titled "Liabilities." What companies generally avoid is having more liabilities than assets.

The wealthy families I know well enough to know of some of their finances eschew consumer debt, but they are fine with assuming debt. Merely buying stock on margin is an assumption of debt. Individuals in general, not just wealthy folks, (should) avoid consumer debt as much as possible because consumer debt doesn't generally produce more revenue than is used to pay the consumer debt; therefore, in general, assuming consumer debt to acquire "stuff" just costs more overall than does paying for it outright.

Why pay less when you can pay more? Hie thee over to the money store.
-- 320 Years of History admonishing my kids about frivolously taking on debt​

 

[320 Years of History]

Then why do so many companies and wealthy families avoid debt?

???

I don't know any companies that avoid debt, although plenty of them, most of them, avoid unnecessary debt or debt that doesn't pay to assume. Debt, both short and long term, is an important tool in financing all sorts of business objectives, and well managed businesses routinely use debt. Look at any company's balance sheet and you'll find debt in the section titled "Liabilities." What companies generally avoid is having more liabilities than assets.

The wealthy families I know well enough to know of some of their finances eschew consumer debt, but they are fine with assuming debt. Merely buying stock on margin is an assumption of debt. Individuals in general, not just wealthy folks, (should) avoid consumer debt as much as possible because consumer debt doesn't generally produce more revenue than is used to pay the consumer debt; therefore, in general, assuming consumer debt to acquire "stuff" just costs more overall than does paying for it outright.

Why pay less when you can pay more? Hie thee over to the money store.
-- 320 Years of History admonishing my kids about frivolously taking on debt​

Then why do so many companies and wealthy families avoid debt?

It's worth noting that to avoid debt is to avoid the gains to be had from exploiting the time value of money. Who does that? Just who are you talking about when you wrote that comment above? Truly, the more I see your remark, the more I'm like, "WTF?"

 

[william the wie]

Up until recently Ford, Microsoft for most of its existence and most of the smaller firms in Europe.