Monday Reading

Mark Cuban has written some interesting articles on investing. I think they’re a good read; it’s not the typical stuff you would hear from other investing pundits.

- My Investment Advice for 2006

- The Stock Market is for Suckers

- Long Tail of Investing

Main takeaways:
- When you buy stock, someone is selling it to you. Why is that someone selling it? Are they really dumber than you are?

- Instead of trying to make better investments, you might do better by spending your time trying to reduce your expenses. Saving $100 per month you would have spent going out = $1200 per year. That’s equal to a 10% return on a $12,000 investment.

- For some people, more spare time and a little piece of mind might be worth the 5% you would give up by putting your money into bonds.

Stock Update

So January starts off with a tech stock rally which prompted me to write an article about why it would be good to invest in tech stocks. A couple days later Intel, Yahoo, and Apple (among others) report “disappointing earnings“¹.

A lesser geek might be concerned about this pull back, but I see it as a great time to get in. All tech stocks took a hit last week, while only some of them deserved it. One of my favorites, AMD, has already bounced back a bit. Yahoo! on the other hand is still trading below $35 right now, making a great opportunity for you to check out the stock.

References

[1] Stocks Slump as Tech Earnings Disappoint by Jennifer Coogan.

Full Disclosure: At the time of writing this article, Jason owns a small number of shares in AMD stock.