If wealthy people have the same 24 hours in a day, and work just as hard as others, how do they acquire such incredible wealth?
This was the question George Samuel Clason set out to answer in his timeless classic The Richest Man in Babylon. Since 1926, Clason’s book has sold more than 2 million copies and has been translated in 26 different languages.
Set in ancient Babylon, supposedly the wealthiest city in the history of the world, the book dispenses financial advice through a collection of short stories. The Babylonian financial gurus offer simple and common sense advice to managing your money — advice that’s still relevant today.
What I like most about this book is the simplicity of the storytelling. Although the book is not religious, the format and diction comes across as “Biblical,” making Clason’s advice seem infallible and sticky in your mind. While none of the lessons are likely to be earth-shattering, they cover the fundamentals of basic wealth building everyone should know.
Going back to the original question: Can wealth creation be taught?
Clason says it can and I have to agree. In the book, Clason tells the story of Arkad, a merchant and the richest man in Babylon. The king of Babylon asks Arkad to share his wisdom with 100 students in an effort to increase the collective wealth of the population.
“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.”
It’s no secret that to be a successful investor or speculator, you have to govern yourself according to a set of rules.
And I can’t find any better core rule than the famous Buffett quote above. It’s one that is the cornerstone of my investing career.
If it’s not taped to your fridge or your multi-screen trading desk, it should be.
But how can you actually put this rule into practice? And what are the common mistakes that new investors make over and over again that violate this rule?
Every week I get an inbox full of emails from new readers, subscribers and seasoned veterans.
Today I’ll introduce you to the four most common problems that investors have while investing in junior mining stocks.
So let’s get started…
Rule #1 – Don’t Blow Up
My first big experience behind the scenes of a bull market was the extraordinary spike in the price of uranium around 2006.
I saw euphoria first hand. Brokers were making a killing, accredited investors were making a killing, retail investors were making a killing. I made a killing.
By Doug Casey, founder, Casey Research
Prediction 1: The End of Retirement
The average American can forget about retirement. We’ve all heard the stories about how the average American couldn’t lay his hands on $1,000 to save his life. His expenses aren’t going away, however, even if his income does.
It seems like things have reached a critical mass. And if the economy slows down, there are going to be a lot of people losing their homes again. They’ll be unable to pay their credit card bills, car payments, student loans, or anything else. They aren’t going to be able to buy anything. They wound up in breadlines in the 1930s. But today, 40 million Americans have SNAP cards to take away the hunger pains and embarrassment of being penniless. There could be 100 million in a few years.
I know this sounds outrageous because right now, everything is running fairly smoothly. The standard of living of the average middle-class American has degraded slowly over decades, but hasn’t yet totally collapsed. But that’s the way it is a day before a volcano explodes, or a day before an earthquake, or minutes before an avalanche starts coming down.
That's how many broilers our country's poultry industry produced in 2017, according to the latest numbers from the U.S. Department of Agriculture.
As you can guess, supplying all of America's Super Bowl parties and summer cookouts is big business. The industry stretches to every corner of the country... with at least 20 states producing 200 million pounds or more per year.
All told, feeding Americans' appetites for poultry and eggs generates more than $40 billion annually.
Now, imagine if this industry hadn't developed over roughly 200 years...
Suppose instead that the modern chicken industry developed essentially overnight, in just a few years.
In relationship to GDP, the balance sheet will continue to shrink until some magic unknown point is reached.
The Fed has a new plan for what to do with its balance sheet and today announced several major components of it:
Begin tapering the “runoff” of Treasury securities in May.
End the runoff of Treasury securities on September 30.
Continue shedding mortgage-backed securities (MBS) at the current maximum of $20 billion a month, essentially until their gone.
After September, reinvest MBS principal payments into Treasury securities.
Chair Jerome Powell said during the press conference that the balance sheet will by then be “a bit above $3.5 trillion.”
The balance sheet will remain at this level even as the economy grows, thus slowly shrinking in relationship to GDP.
Today I welcome back Ivan Bebek, chairman and director of Auryn Resources [13:33]. Ivan has over 20 years of experience in the mining exploration industry.
In this episode, he shares some of the huge opportunities he’s pursuing in the resources space—and why he’s buying Auryn Resources shares hand over fist.
March Madness is upon us! If you’re having trouble filling out your bracket, I break down how to make your selections… and the odds of picking the perfect bracket [50:40].
Yesterday I discussed modern monetary theory (MMT) and how it’s become very popular in Democratic circles.
That’s because it allows for much greater government spending without having to raise everyone’s taxes. And everyday citizens could get behind it because it promises to fund lots of programs without seeing their taxes raised.
What’s not to like?
If MMT were just a fringe idea with a few fringe followers, I wouldn’t waste my time or your time on it. But it’s coming your way, so it is important to understand it.
If you missed yesterday’s reckoning, go here for a refresher.
The people who are thinking about MMT, who understand it at least in some superficial way, are the people who are driving the policy debate or running for president.
Many mainstream economists and money managers have attacked MMT, including Fed Chairman Jay Powell, Larry Summers, Paul Krugman, Kenneth Rogoff, Larry Fink, Jeff Gundlach, Jamie Dimon and Ray Dalio.