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Just a suggestion for you investors out there might be to read "The Lazy Person's Guide to Investing" by Paul B. Farrell, JD., PHD., columnist, CBS Marketwatch, 2004. While the numbers ($) are out of date the concepts are not. Basically what he says is that the best outcomes on investments are those that buy indexed funds to the market, 60/40 mix, hand's off, and reposition once a year. He has worked the statistics for past years markets to come to these conclusions.

Here is another famous Farrell, Chris Farrell editor of Marketplace Money who is Rethinking Stocks for the Long Haul. Jeremy Siegel's famous book "Stocks for the Long Run" is the bible on the subject, but as with the other Bible, people have different interpretations and critical analysis of its content. :)

 

Here is one criticism of his book (4th ed. if you have it), take a look at Figure 2-2 "Average Total Real Returns after Major 20thC. Market Peaks." For those without the book it shows that even investing in stocks at their peak (his examples are years, 1901, 1906, 1915, 1929, 1937, 1946, 1968, 1973) 30 years later you are better off compared to investing in bonds. He shows that $100 invested for 30 years at each of the eight peak years listed above would have an average total real return of $585. (Bonds much less.) A serious problem with the average return of $585 over those eight 30 year time periods is that 85% of that average return was made in only the last two time periods (1973 to 2003 and 1968 to 1998) and only 15% was made in the previous two time periods (1946 to 1976 and 1937 to 1967) and ZERO percent (zero dollars) was made in the first four time periods. How would you like to have been a stock investor in those first four periods or even the next two?

 

That example is only one of a number of problems with Siegel's conclusions. There are others that are fairly will known among a few critical economists, but hardly known at all among the general public.

 

Here is another example, made simple, to show you the problem with other parts of his data analysis. He argues that average annual returns on stocks have never been negative when measured over any period of 17 years or more. Technically true, but a portfolio does not earn or grow by "average annual returns." A portfolio earns or grows by annual compound returns. Here is what I mean. If stocks over a 3 year period earned annual returns of 10%, -20%, and 10% the average annual return is 0%. But 0% is not the compound return that stocks would have actually earned. Here is the math. Start with $100 growing the first year by 10% ($100 x 1.1) to $110 then falling the second year by 20% ( $110 x 0.8) to $88 then growing in the 3rd year by 10% ($88 x 1.1) to $96.80. Stocks lost $3.20, they did not earn or grow by 0%. (BTW this is no trick, change the numbers to occur in any order you want, the result is the same) That loss of $3.20 is a negative compound return. The average annual compound return is approximately -1.1%. Here is the math, $100 x 0.989 x 0.989 x 0.989 = $96.74

 

Finally, here is a web site that will give you more than you will ever want to read on the problem with Siegel's Stocks for the Long Run.

 

This is partly why I said Paul Farrell might be right. Or not. It ain't an easy question, and the data may well be skewed by the huge stock prices run up from about 1982 to 2000 (easy money years). Lop those numbers off the tail end of the data from 1900 or even 1800 and the Siegel's conclusion about the safety of stocks for the long run does not look good.

 

Cheers John

Edited by mcbockalds

John & Karen "1/3 - timers"

 

The best things in life aren't things.

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Here is another famous Farrell, Chris Farrell editor of Marketplace Money who is Rethinking Stocks for the Long Haul. Jeremy Siegel's famous book "Stocks for the Long Run" is the bible on the subject, but as with the other Bible, people have different interpretations and critical analysis of its content. :)

 

 

Interesting I suppose, but in a hundred words or less, what's the point you're trying to make?

 

ed

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Here is another famous Farrell, Chris Farrell editor of Marketplace Money who is Rethinking Stocks for the Long Haul. Jeremy Siegel's famous book "Stocks for the Long Run" is the bible on the subject, but as with the other Bible, people have different interpretations and critical analysis of its content. :)

 

 

Interesting I suppose, but in a hundred words or less, what's the point you're trying to make?

 

ed

 

My point is simple, risk management in stocks is neither as easy nor as safe as Jeremy Siegel implies in his book.

 

Lies, Damn Lies and Statistics (1976) is a very good book. It helps you know how to present proper statistical presentations. On the other hand it helps you to recognize deception, and errors in analysis, reasoning and conclusions. Stocks for the Long Run is a decent book, but due to some statistical "errors" (?) it is not a very good book and yet it is the bible from which we get the idea of "buy and hold" for the long run.

 

Cheers John

John & Karen "1/3 - timers"

 

The best things in life aren't things.

Avatar: Padre Island National Seashore, TX

2008 17' Taylor Coach, Lightweight Trailer, 2050lb Dryweight (axles and tongue)

2007 Chevy 1/2 ton, Reg Cab, 8' Bed, 4.8L, 2WD, 3.23 Lock. Diff., Highway: 25 MPG Solo, 15-16 MPG Towing

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John: I knew it, I knew it, you are a closet economist. "on the other hand".

 

B) True. But I refer to myself as a recovering economist.

 

I got my degree studying under the rather well known, nontraditional, ecological economist, Herman Daly, who has only one arm. He used to say, "What this world needs is a good one-handed economist :D

 

Cheers John

Edited by mcbockalds

John & Karen "1/3 - timers"

 

The best things in life aren't things.

Avatar: Padre Island National Seashore, TX

2008 17' Taylor Coach, Lightweight Trailer, 2050lb Dryweight (axles and tongue)

2007 Chevy 1/2 ton, Reg Cab, 8' Bed, 4.8L, 2WD, 3.23 Lock. Diff., Highway: 25 MPG Solo, 15-16 MPG Towing

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My point is simple, risk management in stocks is neither as easy nor as safe as Jeremy Siegel implies in his book.

 

Lies, Damn Lies and Statistics (1976) is a very good book. It helps you know how to present proper statistical presentations. On the other hand it helps you to recognize deception, and errors in analysis, reasoning and conclusions. Stocks for the Long Run is a decent book, but due to some statistical "errors" (?) it is not a very good book and yet it is the bible from which we get the idea of "buy and hold" for the long run.

 

Cheers John

 

 

 

So what you're saying, John, is very much in line with my hero Ben Franklin who is reputed to have said "Believe nothing you hear (read) and only half of what you see". ;)

 

I guess making money in the market boils down to Investing Rule #1. Buy low. Sell high. All else is commentary.

 

Take care:

ed

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  • 2 weeks later...
  • 2 weeks later...

In answer to the original question I sure am still in, and damn glad too!

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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The last time I bought any stocks (always in mutual funds) was Oct. 2008 and that took our retirement portfolio up to a grand total of about 2% in stocks! I sold about half of those same stocks in April 2010 - at a decent profit - and that took our stock portion down to close to 1%. Now it is time once again to take some decent profit and I did - stock portion now down to about 0.5%.

 

Our mutual funds have a serious penalty for "frequent" trading so I can only buy or sell anything once every 3 months without paying the penalty. So if my stocks are higher 3 months from now I will likely sell some more (getting closer and closer to 0% in stocks). It is fun to sell HIGH and buy LOW (or sell on the way UP and buy on the way DOWN) even if it only happens every few years. And it will be fun to start buying stocks again in the future at falling prices - as surely as morning follows night. :)

 

Cheers John

Edited by mcbockalds

John & Karen "1/3 - timers"

 

The best things in life aren't things.

Avatar: Padre Island National Seashore, TX

2008 17' Taylor Coach, Lightweight Trailer, 2050lb Dryweight (axles and tongue)

2007 Chevy 1/2 ton, Reg Cab, 8' Bed, 4.8L, 2WD, 3.23 Lock. Diff., Highway: 25 MPG Solo, 15-16 MPG Towing

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So you missed a lot of the great momentum forward by not being in more during 2009? And by having so little in stock funds means that you've missed some good gains the past 4 years.

 

Barb

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So you missed a lot of the great momentum forward by not being in more during 2009? And by having so little in stock funds means that you've missed some good gains the past 4 years.

 

Barb

So you know what the other 98% of our retirement portfolio has been doing?? I don't think so! Sometimes it is good to think before speaking.

Cheers John

John & Karen "1/3 - timers"

 

The best things in life aren't things.

Avatar: Padre Island National Seashore, TX

2008 17' Taylor Coach, Lightweight Trailer, 2050lb Dryweight (axles and tongue)

2007 Chevy 1/2 ton, Reg Cab, 8' Bed, 4.8L, 2WD, 3.23 Lock. Diff., Highway: 25 MPG Solo, 15-16 MPG Towing

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From today's news:

 

Driving with solar power
Tesla Motors (NASDAQ: TSLA ) is leading the charge in making its vehicles solar compatible. The company is building a network of free supercharger stations that will give drivers a 150-mile range in just a half hour. When the network is complete in two years, a Tesla owner will be able to drive from Los Angeles to New York without spending a dime on fuel.

The company has teamed up with another business controlled by Elon Musk, SolarCity (NASDAQ: SCTY ) , to offer a complete off-grid product for consumers who want to get all of their fuel from the sun. SolarCity and Tesla are a natural fit given their common majority owner and how complementary their businesses can be to each other.

http://www.fool.com/investing/general/2013/03/06/electric-vehicles-and-solar-a-match-made-in-heaven.aspx

 

 

Tesla Motors Inc. (TSLA), which received $465 million in U.S. Energy Department loans to develop and build electric cars, will repay the funds five years ahead of schedule in a plan approved by the government.

The carmaker said in its annual report yesterday that the department approved amended terms of the loan agreements that enable it to complete repayment by December 2017. Starting in 2015, the Palo Alto, California-based company will make accelerated payments from excess free cash flow, Chief Financial Officer Deepak Ahuja said in a telephone interview.

http://www.bloomberg.com/news/2013-03-08/tesla-plans-to-repay-u-s-loans-five-years-early.html?cmpid=yhoo

 

 

Tim Beyers: Every portfolio needs a battleground stock -- a company so loved, and so equally reviled, that imperfect pricing of the underlying business is bound to occur. You know the sorts of stocks I'm talking about: Apple, Sirius XM, and my pick for this month's must-own, Tesla Motors (NASDAQ: TSLA ) .

I'm in Austin, Texas for the annual South By Southwest Conference, in part, to hear CEO and co-founder Elon Musk talk up the merits of his electric car manufacturer in the wake of a mixed Q4 earnings report and a high-profile fight with The New York Times. Expect bearish investors to growl at whatever bold claims he makes from the floor.

You know what? It doesn't matter. The truth is, we don't know exactly how the Tesla story will end. What we do know is that Musk personally controls nearly 24% of Tesla's shares outstanding, which means he has a lot to lose if the company fails. We also know that production is ramping up to 500 cars per week from 400 just a few months ago, while the stock trades for a little more than twice expected 2013 revenue, which is on track to quadruple.

All that's keeping Tesla down is skepticism that an electric can take hold on a mass scale. Ford's five-fold increase in January hybrid sales -- a natural bridge between all-gas and all-electric -- suggests that these skeptics are well on their way to being proven wrong.

http://www.fool.com/investing/general/2013/03/07/roundtable-1-stock-to-buy-in-march.aspx

 

 

Check this out!!!

http://wallstcheatsheet.com/view-image/?src=2013/03/tsla5.png

 

 

I bought in when they IPO'd in 2010, and two buys since in 2011. But then everyone here knows that. :D

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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  • 4 weeks later...

Derek, I'm sitting in the Dubai airport reading about TSLA and watching the stock jump and it makes me smile. Probably not as much as you though. So are you going to sell it at this level or hold?

 

Jim

Edited by Jim Rack

Jim
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Hi Jim,

Thanks! No I am holding as originally planned. Musk, as anyone who has followed him has executed perfectly. Today was a shock for the naysayers who said it would never be profitable. But Musk's "big announcement" is not until tomorrow. Today was just thet sales exceeded and they are in the black. I can't wait to see what the big announcement is.

 

The folks who say they can't compete with the big car makers are missing the boat. This not about making the same thing over and over as the ICE and oil crowd want to see happen. Musk's solar fast charger free electric highway, which is free to Tesla owners, is already being erected and is working along several major corridors. Within a few years a Tesla owner can travel fuel free and recharger cost free from coast to coast on at least one major highway. Most miss that already successful effort and the fact that he also runs Solar City, the installer!

 

But there is big news for all of us. Most ignore that Tesla is making the drive trains for Toyota all electrics, or that they dropped the low range 40kw systems for lack of demand?

 

Everyone says that if Electric cars were cheap enough they would be a no brainer at today's fuel prices.

 

Jim,

Most here are unaware of the relationship between Tesla and Daimler. Some may have read about the Tesla driven Mercedes. But the big news will be when there is a cheap, affordable, all electric. This is big news for folks who RV with a Smart on the back of their rig. The only reason I bought the new Kia Rio 2012 5 door, not a smart was the awful shifting of their paddle system which even the most die hard fan will admit is a PITA in practice.

 

So why would Smart car owners care about a solution to the terrible tranny? And what does that have to do with Tesla? The new, Tesla driven, all electric single speed Smart car will be available in the US soon. How much? $17,000.00 after the solar credit. 115 or so mile range, just like the now not going in Tesla batteries were? Maybe I am making a correlational error. Maybe not. But the electrc Smart and it coming soon at that price is real. Go here:

http://money.cnn.com/gallery/autos/2012/10/11/smart-ed-electric-car/index.html?iid=EL

 

So all electrics for places like London, and Silicon Valley willing to limit ICE engines in town, and folks who live in town and can't afford fuel today and a car note will have a car for all of us retirees with only two or one in the family, and young newly marrieds, and couples like my youngest who are both professionals and decided not to have kids, well, the ICE and oil folks still don't see the writing on the wall. They can't. Let's acknowledge that there were tablets before the iPad. Why didn't they sell? Tesla, and the electric car are already doing the same thing. Tesla stock has not yet begun to rise. It is trading today at ten times the volume. I will be happy a year from now I think.

 

Dubai? Dang bud, I am just a poor re-tired person who is now self-enjoyed. Your trip likely cost half what I had to invest in Tesla. And I had to put my old petty cash account monies somewhere that makes more than .045 %! Glad you took the ride a bit. Consider the facts above before you sell it, and consider the execution and goals of Musk that has been proven.

 

And read whatever it is he announces tomorrow!

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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The problem with the all electric smart - or at least the potential issue - is that it may be based on the "new" body, not the current body. If it is, it is going to be too big to cross-load and thus will not be viable for those of us that piggyback. For an in-town car it would be fine. But even with 120 mile range it is not enough to be useful to THIS RVer. I need it to be refilled easily on my trip to (lets say) Denver from Colorado Springs. No can do, today or even in the near future. A non-starter for me. But for a commuter car, it would work fine.

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Next week I'm driving my ICE smart to the ECR (Eastern HDT Rally). If I had an electric I could just get there - maybe, but then I couldn't get home. And back in '08 I bought the first 451 smart in TN and broke it in easy. I have never had a rider complain about the shifting and I never use the paddles. If they had an electric, that was short enough and would go at least 300 miles between charges I MIGHT be interested, but until then I am addicted to hydrocarbon fuels.

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Showing my ignorance as I don't keep up with Smart car body sizes. I know now you all need to. But I also have three vehicles and one can be a commuter car. We are 12 miles from the base and town.

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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Derek,

 

See those of us that load smart cars crossways have to think about the highway regulations. The earlier smart known as 450 was not imported into the U.S. as a dealer car, but there were a few sold by an importer. The majority that get used were imported into Canada and often then as they became used they found their way into the U.S. Those cars were about 97" long as I recall. Then to meet the new European regulations smart redesigned the cars and they ended up being 106" long. These were imported by Roger Penske's group and sold at Mercedes and stand alone dealers across the country. The first year was '08 and they sold about 25,000 units and it has dropped since then. Because of our imposed government CAFE regulations to force higher mpg Mercedes has taken the brand totally under their wing in an attempt to bolster the average mpg of their entire product line. But it hasn't gone well as Mercedes customers don't take well to our crowd hanging out in their world, enjoying the fresh baked cookies, upscale coffee and the like as we all pay $300 an hour to get our oil changed, so time will tell if the niche car even survives and as Jack says the new 453 is rumored to be another 6" longer and if so then our little splinter group will drop them. We don't have them as a commuter car since driving a 25-30 ft long tow vehicle with a 40' portable home attached gets us at the 65' highway regulations for RV's and we can't tow our Maybach or Tesla behind the rig so we need a little car on the bed. We don't need these for commuting, but to go get groceries, take the dog to the vet, go to the local sights (which may be a few hundred miles away) and other things as a prime mover. Sorry for getting on my soapbox, but since so many newbee's read these posts I thought a little more detail was in order. Russ

 

P.S. that Asus you lead me too is working pretty well now. Not bug free, but not bad for the $$ - thanks again.

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No problem Russ,

Glad it worked out.

I towed a fiver too. Just no way to carry a car on that light duty truck, not even a motorcycle. Hey, no sweat as just like Class 8 TVs, be they singled or not, are also not everybody's cup of tea. Yours, sure. Just like I can't wait to get a Tesla. EVs are also not everybody's cup of tea. Heck tea isn't everybody's culpa either!

:lol:

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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Derek

 

I never owned the stock. It's not the type of stock I would buy (too risky). I was just glad to see it going the way you had hoped.

 

I was just stopping in Dubai on my way from Afghanistan back to the states. The company was paying for the flight. My contract is up and looking forward to wandering around a bit in the RV.

 

 

Dubai? Dang bud, I am just a poor re-tired person who is now self-enjoyed. Your trip likely cost half what I had to invest in Tesla. And I had to put my old petty cash account monies somewhere that makes more than .045 %! Glad you took the ride a bit. Consider the facts above before you sell it, and consider the execution and goals of Musk that has been proven.

 

Jim
SKP: 99693
If you think you can, or you think you can't. . . you are probably right (Henry Ford)
2014 Dodge 4WD Dually
1998 Carriage LS-341

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Jim,

Enjoy some time off. You have shown me some stuff about the mechanics of investing I never knew. I sure appreciate it. I am even more tickled it is going as expected. Only it took a year longer to start being in the mainstream media.

 

Wednesday, two days ago, I went down to the local Mercedes stealership to ask if they were going to get the electric Smart. I asked for the store manager. He gave me a politician-like non-answer and said that they did not have that franchise. After repeating several times was he saying that they were considered not good enough by Daimler to have any dealership and were they about to lose their franchise? Or is it that they just were not going to ask for it or buy it. Then he stopped acting like it was beyond their control and said that there was more to it than that and they would have to build an additional facility. They are owned by the folks next door who own the Honda franchise here too. (Duh?) I then said that I would rather keep my money in the local community but would have no problem spending my money in Dallas, three hours away because maintenance should not be a problem, and I have a dual axle 19 foot trailer and a diesel truck. No tune-ups, no oil changes, no radiator, no fuel delivery system be that injection or carburetion, no exhaust system or pollution controls, so unless the battery fails, it should not be a problem being three hours away from the dealer each way.

 

Tesla is a disruptive technology producer, run by one who is being called the premier applied engineer in the world, another Henry Ford, with the biz smarts of Steve Jobs, and seemingly all of the strengths and lesser admired traits it takes to bring new standards to market. The paradigm has changed, and those clinging to old ways they know that no longer have a future. I am sure the best buggy whip manufacturer was the last to fold, but folded nevertheless.

 

The local dealer is thinking in a sense of having competition from many brands and many more dealers. For example, in Bossier City next to us, there is a dealer for every brand except Subaru. Across the river are more duplicate dealers for the same brands and still no Subaru. No Smart dealers. One hour North in Texarkana, are more of the same and no Smart cars or Subaru dealers there either. In three more towns within 30 minutes driving time are more dealers of the same makes and models.

 

So the nearest Smart Electric dealers will be in New Orleans six hours South of our area, and three hours and another state away in Dallas.

 

Apparently no one realizes that everyone does not need or want an electric car. But being essentially the only one with an entry level price electric commuter car, that uses no gas or diesel, without having to compete with no less than five or six dealers of the same products within a one hour driving radius, just might be a gold mine. But waiting until others make it happen means they will have not gotten on the train that is coming, but run over by it.

 

Some other Tesla paradigm busters only possible with electric vehicles. Regional repair contract shops for the few things that do need hands on maintenance like accident repairs. No dealerships that are locally owned instead all showrooms, which are like Apple stores, are owned by Tesla. The end of the dealer and the silly offer/counter offer let me take that to the manager and see if he will take that offer BS is soon to disappear. No EPA costs because no exhaust good or bad inside. They can be run in a closed room. No fuel or oil leaks. Sealed lifetime lubed bearings and moving steering and suspension parts.

 

The dealerships are going away too. And by the time my grandkids are my age, like pay phones, liquid fueling stations will be very hard to find.

 

Vinyl went away overnight. CDs are almost gone too as now much is downloaded. Mechanical hard drives are going next. No one doubts that. Desktops are going away. Our tablets already outperform the desktops of just ten years ago, and the watches are on the way to be a hybrid between tablets and phones.

 

We all wanted a Star trek communicator, and a tricorder. We have them now more or less with cell phones and tablets/phablets.

 

Let's remember that both Boeing and Lockheed said it was impossible for a startup like Space X to develop and launch vehicles into space at a lesser cost than they could. Once Musk did just that they resorted to spending big bucks inside the beltway poring billions into lobbyists and "incentives" for legislators.

 

There are a lot who truly do believe as you do that it is risky to believe in ICE vehicles being extinct in a decade or two.

 

I know stubborn and resistance to change. I just got my first actual cell phone mid 2012. My SH had a voice only flip phone for years. Yes I used one for work but turned it off at COB every day. No personal one and none from 2009-late 2012. Now I pay $35 bucks a month for unlimited data texts and long distance on my Galaxy smartphone. There is a very good reason Daimler and Toyota paid big bucks for access to Tesla drivetrain technology. People have it backwards. It isn't that Tesla has to compete with the entrenched ICE makers. They have been doing the same thing for a century with little change not government mandated for safety or better efficiency/less pollution. Hard to compete with that? Hardly.

 

The question is can the entrenched car makers compete for long with an established Tesla. The Leaf will not compete, the Rav4 will. The hybrids will not compete, there is already partial, and soon to be along all major routes, Tesla free fast 30 min. chargers, making cross country trips free of charge, pun int.

 

Thanks again Jim.

Edited by RV

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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  • 2 weeks later...

Great site and topics. It's taken me a long, long, long time to realize the importance of the concept of compound interest. I know it's great fun to figure out what's next in the stock market. With all of the ups and downs I realized after 25 years of trading and thinking it was investing, I finally quit one day. Some weeks I had a profit of $30,000 in a month. The next month, I was down $40,000. I finally quit after rereading the book, "Your Money or Your Life" by Joel Dominguez and Vicki Robins (for the fourth time). I can't recommend it enough for RVers. Quite simply I was addicted to the market. Loved it, still do, but realize now it is all illusion.

 

The main concepts of the book are simple in relating work to life energy and hours left to live. Their recommended investment plan is to invest in something that can't lose money but promises an annual rate of return that beats inflation, and is guaranteed by the Federal Government. OK! What is it?

 

There is only one such investment vehicle...Treasury Bonds. In the year 2001, after losing most of our stock portfolio to the 2000 Tech Crash, we moved one half of our remaining funds to I-Bonds. At that time there was a 3% fixed return guaranteed for 30 years with an additional inflation factor added every six months. As a result we have averaged 5-6% annually for the past 12 years. By next year it will have doubled. Then, in another 12-13 years will double again. Fortunately, we have never needed to touch it as I choose to workamp whenever we could use some extra funds. I only wish I truly understood the power of compounding when I was in my 30s. I know many will shake their heads in reading this and say, "No way am I going to settle for 5% a year."

 

Yep. It's the old story of the turtle vs. the hare, all over again. In real life. In the end, we all die no matter the route, and a paragraph or two is left behind as our obituary.

 

I can't tell you how much this investment move has added to our peace of mind in our retirement years. I don't care what the stock market is doing, or the gold market, or politics. Although we have additional funds in a balanced Vanguard Fund, the I-Bonds are my favorite. Only wish we had doubled our purchase. At some point in life as we age, peace of mind outranks risk and possible gains. To be able to boondock in the desert in the winter, and a lake during the summer, look out at the grand vistas, and live off the grid, I smile at the outrageousness of it all. Now that's living! Finally, at age 75, I got it!

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David, you got my interest enough because like you I will need a place to put my money not directly in the stock market. I looked up T Bonds and I Bonds, since you reference both, but I found they are not the same. One is every six months and the other is 30 years? Perhaps you could explain a bit more directly with rates and a link? Unlike you I am not addicted to the market. I am diversified in that I invested in land that I live on and have no debt of any kind. I have paid up Medical coverage and a small pension for life that is as secure as your T Bonds. That in addition to my four USAA funds, savings that we keep only for emergency liquidity and minimal, never more than my initial investment in Tesla, my one venture into the stock market and likely my next to last as Space X has not IPO'd yet.

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RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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