Book Info
Nick Maggiulli: Just Keep Buying
General idea of the book:
- Saving is for the poor, investing is for the rich - considering the basic living cost, the poor will use a chunk of their earnings to sustain their basic living, while those cost will be relatively minimum for the rich
- Increase your salary is more important than reducing your expenses
- Avoid life style inflation - save at least 50% of your future raise and bonuses
- When saving for big purchases, like down payment, use cash - CASH.TO / PSU.U
- Investment is to replace your human captial with financial capital
- Consider buying income generating assets
- Stocks - high return / low maintenance / high volitility
- Bonds - lower volitility / safety for principal / low returns
- Investment Property - high returns with leverage / hard to diversity / expensive / management issues
- REITs - with real estate exposure with little management need / higher volitility than stocks
- Farmland - lower correlation with other financial assets - less liquidity and high fees
- Small Business - more involvment = more opportunities / prompt to failure
- Royalities - uncorrelated to traditional assets / high seller fees / tastes can change
- Own product - full ownership / very labor intensive / no guarantee of payoff
- Don’t buy individual stocks - volatility problem
- Just buy first, buy all with your money, it tend to perform better when compared with average in
- Rebalancing is important, prefer to buy to rebalance, rather then sale rebalance