Sixteen Ways to Manage a Concentrated Position

by Bill Parrott on

Warren Buffett, Bill Gates and Jeff Bezos bet on themselves by concentrating most, if not all, their wealth in their company stock. Shares of Berkshire Hathaway, Microsoft, and Amazon have created enormous wealth for these billionaires, and they’re currently the three wealthiest individuals in the...

The Crow and the Pitcher

by Bill Parrott on

The Crow and the Pitcher is a famous Aesop fable. The crow is thirsty and stumbles across a pitcher of water, but he can’t reach the water because the neck of the pitcher is too narrow. The crow picks up small rocks and pebbles to drop them into the pitcher and raise the water level. His plan works,...

How to Survive A Recession

by Bill Parrott on

Hurricane Harvey blasted Texas and left a trail of debris in its wake. The refineries couldn’t produce gasoline, and, as a result, Texans faced a gas crisis. As pumps ran dry, people panicked and emptied grocery stores and ATM’s. It was a few days of bedlam.

Barron’s Magazine this week ran several...

A Few Ways to Lose Money in The Stock Market

by Bill Parrott on

The market loves to rip wealth from the hands of investors who panic as stocks fall. The Dow Jones fell about 7% from its high last week because the yield curve inverted for a few minutes.

Markets have been rising and falling for centuries. Since 1926 they’ve risen about 75% of the time. A quarter...

Headwinds

by Bill Parrott on

The stock market has hit a rough patch recently, falling 5.75% since the Federal Reserve cut interest rates on July 30. Headwinds have been stout as market participants react to the trade war, protesters in Hong Kong, Brexit, Trump’s tweets, and calculated language from Chairman Powell.

The recent...

Trifecta

by Bill Parrott on

Picking a trifecta is difficult, at best. Identifying the first three winners of a horse race, in order, is called a trifecta. The 2019 Kentucky Derby had 19 finishers, so you had to choose from 5,814 potential combinations! If you were correct, the $2 trifecta paid $22,950.

During my career in...

50 Days or 50 Years?

by Bill Parrott on

The summer season started 50 days ago, and 50 years ago, Neil Armstrong walked on the moon. One short-term, one long.

Traders are short-term focused, and they use a bevy of indicators to try to gain an edge. One of their tools is the moving average. What is a moving average? Here is a definition...

Predators

by Bill Parrott on

According to the African Wildlife Foundation, the lion population has declined 43% in the last two decades, and approximately 23,000 remain on the continent.[1] Other animals that face extinction are the Bengal Tiger, Northern White Rhino, Clouded Leopard, Scalloped Hammerhead Shark, and the Red...

Does Age Matter?

by Bill Parrott on

Bloomberg recently published an article titled: The Old Rules for Building Wealth Are Obsolete. It highlights a few prominent financial advisors who target millennials. My take on the article is that older planners don’t understand younger clients. One advisor said, “Do you think someone’s going to...

Working Forever

by Bill Parrott on

I’m going to work forever, never retire. I love my job, I like my clients, my commute is less than four minutes, and my office is air-conditioned with high-speed internet. What could be better? When I tell people I’m going to work forever, they think I’m crazy. Likewise, when I meet someone who’s...

All Time Highs!

by Bill Parrott on

A record number of climbers reached the peak of Everest this year. In fact, it was so crowded that climbers had to wait in a long line to reach the summit and the approach to the peak was described as a “traffic jam.”[1] A climber spends about two months getting acclimated to the elevation before...

Call an Expert!

by Bill Parrott on

It was time to upgrade my laptop because my old computer was starting to show its age. I did my homework by comparing models, prices, warranties, etc. I had a working knowledge of computers and knew what I was looking for, so I didn’t consult anyone about my purchase.

After my due diligence was...