Why I Seek No Compensation

Why I Seek No Compensation for Investment Advice, and Why You Should Not Offer Compensation for Investment Advice:

If you lack confidence in your ability to manage your own investments, then I think that you should get an ETF based on an index.  If you cannot competently choose your own investments, then you surely cannot competently choose the person to choose your investments.

What ETFs to purchase? I recommend RSP, VB, and VSS.



Western Resources Trading for Less Than Cash Net of Liabilities

Would you pay forty-one dollars for a bag of fifty-four one-dollar bills?  Western Resources is the bag.

Western Resources as of December 31, 2017 had current assets of C$55,036,237 and total liabilities of only C$567,127. See page 3 of the FINANCIAL STATEMENTS at SEDAR:


Western Resources is split into Shares Outstanding of 93,437,110 and Stock Options Outstanding of 930,000.  So the fully diluted shares would be 93,437,110 + 930,000 = 94,367,110:


So the current assets net of all liabilities per share would be (C$55,036,237 – C$567,127) / (94,367,110 shares) = C$0.5772.  Current assets is a balance sheet account that represents the value of all assets that can reasonably expect to be converted into cash within one year:


Western Resources as of February 16, 2018 was selling for C$0.43 per share:


or (C$0.43 per share) x (94,367,110 shares) = C$40,557,857 for the whole company.

So C$40,557,857 gets you (C$55,036,237 – C$567,127) = C$54,569,110 cash net of liabilities.


a potash deposit determined by a feasibility study to be worth C$2.44 billion AFTER-TAX:


Do insiders own any shares?  Yes, they do.  The corporate presentation on page 3 shows that “Strategic Investors hold approx. 65.8% of the company’s outstanding shares”:


And Rio Tinto will be very cooperative:



Good Times Ahead for Zimbabwe? How About South Africa?

Now that Mugabe is gone from power in Zimbabwe, can the people there hope for better times ahead?  The following video strongly suggests so:

Because at least some people in Zimbabwe have gotten the idea that government-mandated confiscation of property and inflation of the currency supply does no good, perhaps voters in neighboring South Africa will learn from the harsh experience of Zimbabwe under Mugabe without making the same mistakes themselves.

Good times ahead for Eastern Platinum?


Bitcoin Is Not A Coin?

I chatted with a pipefitter a couple of days ago during one of many Christmas vacation gatherings.  Although his profession does not enjoy a lot of prestige, he works a lot and provides well for his family.

He asked me if Bitcoin is good to buy.  I said no because it is just a piece of software that can lose out to software not yet made.

To my surprise he asked if I meant that Bitcoin is not even a coin?

The same thing happened to Peter Schiff recently when a truck driver called him and asked about Bitcoin.  Peter Schiff was also surprised when the truck driver asked if Bitcoin was not an actual coin.

Then we have the stripper recommending bitcoins.





Bow Down to the Index, or Dare Incur Its Wrath!

Are you in the top 1%?  Are you the smartest person in the room?  The answer is likely yes, if you subscribe to this blog.

The snapshot below shows that through now, this blog has enjoyed 4,615 visitors, but only 41 of them have chosen to follow this blog:



In other words, you have to be a certifiable sideshow to continue reading past this sentence . . . PERVERT!

But before you apply for a job at a circus, consider this: “99% of individual traders are lagging the index benchmark” for stock markets:



Can you beat the markets by hiring help?  The odds are against it because, as you can see above, 90% of mutual funds lag the markets.

So if you are among the 99% who cannot keep up with the markets through active trading, index funds are the way to go.  If you dare believe that you are among the 1% of weirdos who can beat the markets, consider these points:



I considered the above points back in 2006 when I stopped paying for investment advice, and put all my assets into index funds.  I was looking forward to decades of working, saving, and happily accumulating capital no faster than the markets appreciated.  But my mind wandered . . .

Am I really nothing more than a head of cattle?  Is my best path through life with the human herd?  Dare I depart?  The odds opposed me, but I noticed things.

Follow this blog for future posts on how I dared go my own way, beat the odds, and outperformed the markets by a lot.