Like the "Black Box" at Long Term Capital Management no one knows what was going on - even the people running sometimes. Being susceptible to bias confirmation I'm sticking with index funds. My father used to talk about the new deodorant they came out with. It didn't get rid of the smell, but it spread it around so much no one could tell where the odor was coming from. Maybe index funds help in that way.
Adding to Number 8: "If you have jewelry like an engagement ring, be sure it’s scheduled separately." There are several reasons for this. First, coverage for jewelry is usually limited on your homeowner's policy. Second, most scheduled jewelry policies included "mysterious disappearance." Put a ring on the sink and can't find it later? Covered by mysterious disappearance. Otherwise, you'd have to prove it was stolen, etc. Having a good insurance agent helps a lot in this area. And it doesn't matter if they received a commission. It's all "baked into" the premium. If one agent receives 10% commission and the premium is $1,000 (just for example) and another agent received 15% commission and the premium is $1,000, it makes no difference. Just find the best coverage at the best price.
I think I heard the term “no noting investor” from Buffet. I also call it Mr. Magoo investing. Catastrophes abound around him but Mr. Magoo just keeps going through them, Maybe sometimes ignorance can be bliss.
My brother was a claims adjuster. An insured had killed a 17 year old girl, the parent’s only child, in a car accident. How much do you think the company should have paid them?
I had this published as a comment to the editor at Forbe's several years ago. Your comments on umbrella insurance (which I agree with) reminded me of it. The agonizing problem of valuing human life after an accident ("Human values," June 14, p. 189) has no easy solution. But one quick method would be to pay the same amount the deceased carried on themselves in life insurance. It's always amazing that someone who carries $100,000 in life insurance is worth S2 million after they've been killed in a situation where someone else is liable. Let them fall asleep at the wheel and they're worth S100,000. Let someone else fall asleep at the wheel and all of a sudden they're worth S2 million.
I read this, "In a study of more than 20,000 mutual funds..." and thought about the people just starting out in investing and cringed at the amount of options they have to wade through to come up with a plan (or turn it over to a broker). It's complexity on top of excess choices.
In debate class we prepared to argue both sides of an issue and didn't know until we stood up at the front class which side we would be arguing for. It helped me over time listen to other points of view.
On life insurance: Something I notice most people don't account for is inflation. If you take out a $500,000 policy its purchasing power is $276,577 twenty years later at 3% average annual inflation (it could be better or worse).
Comments
Like the "Black Box" at Long Term Capital Management no one knows what was going on - even the people running sometimes. Being susceptible to bias confirmation I'm sticking with index funds. My father used to talk about the new deodorant they came out with. It didn't get rid of the smell, but it spread it around so much no one could tell where the odor was coming from. Maybe index funds help in that way.
Post: Lessons from First Brands
Link to comment from November 1, 2025
Adding to Number 8: "If you have jewelry like an engagement ring, be sure it’s scheduled separately." There are several reasons for this. First, coverage for jewelry is usually limited on your homeowner's policy. Second, most scheduled jewelry policies included "mysterious disappearance." Put a ring on the sink and can't find it later? Covered by mysterious disappearance. Otherwise, you'd have to prove it was stolen, etc. Having a good insurance agent helps a lot in this area. And it doesn't matter if they received a commission. It's all "baked into" the premium. If one agent receives 10% commission and the premium is $1,000 (just for example) and another agent received 15% commission and the premium is $1,000, it makes no difference. Just find the best coverage at the best price.
Post: The Paradox of Smart Money Decisions
Link to comment from October 25, 2025
I think I heard the term “no noting investor” from Buffet. I also call it Mr. Magoo investing. Catastrophes abound around him but Mr. Magoo just keeps going through them, Maybe sometimes ignorance can be bliss.
Post: How Not To Invest
Link to comment from October 11, 2025
I didn't want a cop out. Give me a dollar amount that you think a 17-year-old girls life is worth?
Post: Navigating the Unknowns of Financial Decisions
Link to comment from September 14, 2025
My brother was a claims adjuster. An insured had killed a 17 year old girl, the parent’s only child, in a car accident. How much do you think the company should have paid them?
Post: Navigating the Unknowns of Financial Decisions
Link to comment from September 13, 2025
I had this published as a comment to the editor at Forbe's several years ago. Your comments on umbrella insurance (which I agree with) reminded me of it. The agonizing problem of valuing human life after an accident ("Human values," June 14, p. 189) has no easy solution. But one quick method would be to pay the same amount the deceased carried on themselves in life insurance. It's always amazing that someone who carries $100,000 in life insurance is worth S2 million after they've been killed in a situation where someone else is liable. Let them fall asleep at the wheel and they're worth S100,000. Let someone else fall asleep at the wheel and all of a sudden they're worth S2 million.
Post: Navigating the Unknowns of Financial Decisions
Link to comment from September 13, 2025
I read this, "In a study of more than 20,000 mutual funds..." and thought about the people just starting out in investing and cringed at the amount of options they have to wade through to come up with a plan (or turn it over to a broker). It's complexity on top of excess choices.
Post: Harder Than It Looks
Link to comment from August 16, 2025
In debate class we prepared to argue both sides of an issue and didn't know until we stood up at the front class which side we would be arguing for. It helped me over time listen to other points of view.
Post: Under Pressure
Link to comment from July 19, 2025
The Dutch Tulip Bubble lasted 3 to 4 years. I don't know how long you wait until something is "mature."
Post: Lindy’s Law
Link to comment from July 12, 2025
On life insurance: Something I notice most people don't account for is inflation. If you take out a $500,000 policy its purchasing power is $276,577 twenty years later at 3% average annual inflation (it could be better or worse).
Post: Room to Maneuver
Link to comment from July 5, 2025