Category: Personal Finance
-
The Pareto Principle can improve your life
In the last post, I mentioned the Pareto principle or the 80/20 rule. This rule states that for many systems or outcomes, 80% of the consequences or results come from 20% of the causes. I see this rule all the time in my scientific research. Complex systems with many variables often have 2 or 3…
-
Is it better to save more or earn more?
In the quest to achieve your financial goals through investing, you will need to increase the capital base that you invest over time. So which is better, to save more of the existing money that you earn, or to earn more? Of course, the easy answer is both, but what if you had to choose? …
-
Options Trading Not a Star Strategy
The general public has become more familiar with options trading thanks to Keith Gill’s trading in GameStop (GME), which made him millions of dollars in a relatively short amount of time using the market equivalent of lottery tickets. While options can generate outsized returns, they can also lead to wealth destruction. Options can be thought…
-
T-bills for short-term savings
Berkshire Hathaway had their annual meeting yesterday, and Warren Buffett disclosed that the company may have upwards of $200 billion in cash at the end of Q2. He also mentioned using 3- and 6-month Treasuries. T-bills and short dated government bonds are the best way to manage large cash positions like that of Berkshire due…