Optimal Strategy for NBC’s “Deal or No Deal”

I was watching Deal or No Deal on CNBC last night and, being the numbers guy that I am, couldn’t help but think about optimal strategies and risk-reward evaluations. I thought about writing something down to enlighten the masses, but it seems someone has already spelled out the basis for an optimal strategy: Optimal Strategy (more…)

The Importance of a Mentor

Becoming wealthy is a full-time job. Successful entrepreneurs have worked for years to build a deep knowledge base in areas as diverse as sales, marketing, accounting, stock investing, real estate investing, leadership, team building and personal finance. For someone who is still laying his foundation, finding a mentor can help him avoid potholes he otherwise would not have seen, and is an invaluable asset as both a friend and a counselor.

A mentor is someone who has already done what you have set out to do. Whether that means becoming a successful stock investor, or real estate mogul, your mentor is an expert and is willing to share his experiences. Just as professional baseball players have pitching coaches and managers have leadership coaches, so should budding entrepreneurs have a mentor that can help steer them down the right path.

Buying Opportunity for Microsoft Stock

I am the proud owner of 25 shares of Microsoft Corporation stock (MSFT: Google Finance, Yahoo! Finance). These shares were purchased on 3/23/2006 at a price of $27 per share.

After selling my SIRI stock last week, I was itching for somewhere to put that money. MSFT had been on my radar for a while and was an obvious target for me. It seems I wasn’t the only one considering investing in MSFT though, because the stock had a rally from the low $27s last Monday to just over $28 this Tuesday.

While I was pondering, a few things happened:

  1. Microsoft revealed their Origami handheld device.1
  2. Sony announced a delay in the release of their Play Station 3 gaming console.2
  3. Jim Cramer talked up the stock on his radio show… twice.

I thought I had missed the boat. But then this Tuesday Microsoft announced a delay of their own3. The consumer version of Windows Vista, the next installment in the Windows Operating System, will be released in January 2007 rather than the previously-planned “second half of 2006”. The “corporate version” is still planned to be released this November though.

News of the delayed release erased the previous week’s rally, taking the stock back down to the low $27s Wednesday. Is this my second chance to jump aboard the MSFT train? Is this a buying opportunity for MSFT?

Book Review: Jim Cramer’s Real Money

You can’t deny the popularity of investing guru Jim Cramer. He’s become an icon. But should you read his book Jim Cramer’s Real Money: Sane Investing in an Insane World? I think you should.

First off, fans of Jim Cramer should read this book no questions asked. I mean who wouldn’t enjoy a book that starts off with “I want you to be rich. Really rich.”? If you’re a fan of the TV or radio show, you’ll get more of that same old Jim you love.

Besides being a quick and entertaining read, Real Money can be a useful part of your investing education. I believe that investors of all levels can benefit from this book. For new investors, Real Money does a great job of explaining the basics. For intermediate investors, Jim’s anecdotes and rules can help you stay disciplined. Advanced investors will at least have a chance to better understanding a man who has a noticeable effect on the market and holds a lot of sway with many of today’s small investors.

Read on for the full review.

Accredited Investors

As small, inexperienced investors, we are unable to take advantage of the full range of available investment opportunities. In an effort to protect small investors, the 1933 Securities Act enacted rules about which securities must be registered with the SEC and which can be offered privately. Because registration is time-consuming and expensive, companies with smaller needs may prefer to promote their investment opportunity privately, but because there is less oversight, the SEC allows only wealthy and experienced individual investors to participate, along with qualifying organizations.

IRAs and HSAs

I’d like to cover two topics with this post, and get some advice from our readers on them. The first being my Roth IRA, and then some musings regarding HSAs. So read on and let me know what you think.

Phil Town’s New Site

Phil Town’s new site is up at RuleOneInvestor.com. Check it out for podcasts, news, and calculators! Also check out FreeMoneyFinance who is holding a “Phil Town Day” with articles dedicated to Phil Town all day long.

Carnival of Investing #13

Greetings! We’re very happy to present Carnival of Investing #13! We had an excellent 22 submissions this week, and thank you all for your timely submissions. To see the entire carnival, come on inside!

The Thrill is Gone

First, here is an article by former Google employee Ron Garret on why you shouldn’t buy Google stock. His argument can be used for nearly any stock these days. Paraphrased it is: why buy stock in a company that has no chance of being bought out and has no dividend? As seasoned traders often say, stocks are just pieces of paper. Of course that doesn’t mean you can’t a make a lot of money trading paper.

Read on for an update on some of my stock holdings.