Avoid using credit cards

[synergy1]

I don't use cc's because Warren Buffett doesn't use cc's. He's worth $50B, and he still lives in the same house he gave thirty grand for in 1958.

On credit cards, he sais "If I can't make money borrowing at 18%, how are you gonna do?"

His legacy of investing brilliance and frugality is a model for us all.

From what I gather, he asked around for money to get his initial funds started. He also bought and sold more frequently than he does now. He was already a millionaire by the time he was my age, but he started his first business at something like 14 and was studying at Colombia university under graham at a young age as well. He loves what he does and is the best at it. He could read entire stacks of company reports and memorize them, and this was how he had fun. He had no interest in spending money since there wasn't anything he wanted.

You mentioned it on another thread when I brought up a somewhat distressed buy ; its hard to make good money on established companies equity unless you have a ton of money. Gotta find the winners no one knows about, have had a stable decade of earnings, and that will in 10 years get you a good % compounded on your principal. He average 20% or so which is insane.

what is your investing strategy now? I thought you were penny stocks?

 

[backbreaker]

From what I gather, he asked around for money to get his initial funds started. He also bought and sold more frequently than he does now. He was already a millionaire by the time he was my age, but he started his first business at something like 14 and was studying at Colombia university under graham at a young age as well. He loves what he does and is the best at it. He could read entire stacks of company reports and memorize them, and this was how he had fun. He had no interest in spending money since there wasn't anything he wanted.

You mentioned it on another thread when I brought up a somewhat distressed buy ; its hard to make good money on established companies equity unless you have a ton of money. Gotta find the winners no one knows about, have had a stable decade of earnings, and that will in 10 years get you a good % compounded on your principal. He average 20% or so which is insane.

what is your investing strategy now? I thought you were penny stocks?

this is the exact same concept to be applied in horse racing

you will not make a living going all in when the public goes all in, unless you are a whale and if you do if you are a whale, you won't be one for very long becuase the betting public has no clue more times than not. a horse that finished a hard closing 2nd will be 4-5 7 days a week, you aren't' going to make a living, betting on that horse (unless you KNOW when he is going to win then you unload)


but the key is knowing when to and when to not agree with the public. they aren't wrong all the time. but they are wrong the majority of the time.

 

[Darth]

If you pay off your card every month, a credit card is no different than a debit card, or cash.

If you are totally irresponsible and you use a credit card like "free money" with no intention of paying it back immediately, then you'll run into trouble.

 

[backbreaker]

If you pay off your card every month, a credit card is no different than a debit card, or cash.

If you are totally irresponsible and you use a credit card like "free money" with no intention of paying it back immediately, then you'll run into trouble.

you never want to actually pay off your credit card. you want to have the ability to pay off your credit card.

you want to keep some money on the card for utilization purposes, raises your credit score.

guy has 50k worth of credit, with a 0 balance is not going to have as high as core that has a 1.5 balance.

 

[CuriousGirl]

My banker told me I should use the credit card for stuff online and for big things like holidays etc and then pay it off straight away. That way i have the benefit of the things being insured, which I won't do with the debit card.

 

[Julius_Seizeher]

My banker told me I should use the credit card for stuff online and for big things like holidays etc and then pay it off straight away. That way i have the benefit of the things being insured, which I won't do with the debit card.

He also told you the lollipop dish was under his desk. How did that work out?

 

[Julius_Seizeher]

You mentioned it on another thread when I brought up a somewhat distressed buy ; its hard to make good money on established companies equity unless you have a ton of money. Gotta find the winners no one knows about, have had a stable decade of earnings, and that will in 10 years get you a good % compounded on your principal. He average 20% or so which is insane.

what is your investing strategy now? I thought you were penny stocks?

I consider myself a speculative value investor. The junior mining sector is where I am buying, because I have educated myself about the ins and outs of mining and the downstream global commodity and supply chain realms that purchase our product. In addition to junior gold and silver miners, I am buying into rare earth element (REE) and agricultural commodity (potash) stocks. So you could say that I am "diversified" across a specific market sector.

The main reason I am attracted to junior miners, is that with the technology we have today, they can prove up underground resources long before any mining (and subsequent revenue) starts. So I look for companies with huge deposits that are economical to mine and located within politically stable jurisdictions. In essence they are HUGELY undervalued companies; they have a mountain of gold, or copper, or niobium, or potash etc etc, but they are not making any money yet and their stock price does not come close to reflecting the value of the companies' underground assets. Once the assets are known, it takes years of drilling and obtaining additional geo reports, and getting permits, and creating joint ventures, and securing financing, and putting the whole thing together before the mining starts, so these years give me the opportunity to buy the hell out of the core group of companies I believe in.

It's Buffett value investing 101, but with less of a focus on books and more on assets, feasibility, and projected demand. So I am far more speculative than he has ever been.

The wild card here is that the big mining co.s are stomping around buying up junior miners like crazy. So while I invest with the idea of long-term, mining investors are receiving more and more pleasant surprises in the short-term of late.

But to answer your question, I buy OTC penny stocks that I believe will be on the AMEX, NYSE and NASDAQ in the coming years.

 

[synergy1]

Rare earths, mostly located in china, are going to be key for electronics and green energy products. I would be bullish on them based on the little I know.

An article you might find interesting:

http://www.zerohedge.com/article/guest-post-how-make-or-lose-fortune-junior-exploration-stocks

Buffet only invested in what he understood. Insurance, beverages and the like. To apply his principals to something you understand sounds pretty exciting, especially for junior companies that could grow quite large and make you a small fortune.

Might be something worth some time reading into as it sounds very interesting.

 

[lorekeeper]

Well, I thought I had under 10k on my CC left to pay off. I didnt follow it this last month and had to put some business expenses on it. turns out I'm up to 14k now.

A friend of mine has suggested I look into some government assistance program, one where they will pay off the CC and I pay the government back at 0% interest. It would save me up to 450$ a month.