Excellent. I'd never heard the term "open loop" but I sure understand it. After ten years with a company, my father left for a position that doubled his salary. Within a year he returned (at his old salary) because he realized he'd lost something by going for the money. Later he became president of that company. I found out Warren Buffett invested in it at one time. We lived across the street from a maintenance person at the company and that family was top quality in every way. I went to public schools and the local community college, and I wouldn't have it any other way. Mom and Dad taught me well. It does not take a lot of money to enjoy your life. Oh, Dad's salary was about nine times the minimum wage at the time. There were over 1,000 employees and the company did about $500 million in business (in today's dollars).
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.
Comments
Excellent. I'd never heard the term "open loop" but I sure understand it. After ten years with a company, my father left for a position that doubled his salary. Within a year he returned (at his old salary) because he realized he'd lost something by going for the money. Later he became president of that company. I found out Warren Buffett invested in it at one time. We lived across the street from a maintenance person at the company and that family was top quality in every way. I went to public schools and the local community college, and I wouldn't have it any other way. Mom and Dad taught me well. It does not take a lot of money to enjoy your life. Oh, Dad's salary was about nine times the minimum wage at the time. There were over 1,000 employees and the company did about $500 million in business (in today's dollars).
Post: Money, Happiness, and Choice
Link to comment from November 22, 2025
I have a checklist I use for investments.
- How do I get in?
- How much is it going to cost me?
- How do I get out?
- How much is it going to cost me?
This excellent article was a good reminder to stay with my "checklist" and hopefully avoid some of those problems.Post: Private Equity Traps
Link to comment from November 15, 2025
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