June 2010

The case against dual class shares (again)

Posted by on June 30, 2010 in Investment Products

Dual class shares refers to a company that has two different classes of shares: one sold to the public and another class which is tightly controlled by the founding families or insiders. Dual class shares are generally panned by the blogsphere since dual class shares tend to perform worse than their peers, controlling shareholders tend [...]

Pension reform: what choices do we have?

Posted by on June 28, 2010 in Misc.

In the after-math of the Great Recession, governments in the western world are grappling with how to reform the pension system (aka social security in the U.S.). The particular issue is that in most plans current funding would not adequately pay out those retiring or would pay out those retiring in the immediate future but [...]

Lost your will?

Posted by on June 24, 2010 in estate planning

How many original copies of your will should you sign? Ask 10 lawyers  the same question and you’ll probably hear  11 different answers (the 11th answer being “what do you think the answer is?”). However, on the question of how many wills to sign, many wills and estates practitioners tend to think the answer should [...]

Has Apple peaked?

Posted by on June 23, 2010 in Investment Products

It would be difficult to name a company that seen as great of success from such depths as Apple.  Apple has sold 3  million iPad’s in its first 80 days of the products release; meaning a unit was purchased almost every second. The stock has risen 30% this year and now trades at or near [...]

What defences do investment advisors have?

Posted by on June 21, 2010 in Investment Information

Assuming that an investment advisor has breached their duties to the client, does the investment advisor actually have any defences? The short answer is that an investment advisor has a lot more than one thinks. If, despite the advisor’s conduct, the client ended up in a better position than if the advisor had not engaged [...]

Your heirs can’t control their spending?

Posted by on June 16, 2010 in estate planning

As generations that either grew up in an  era of austerity  or spent the bulk of the income producing years during economically good times, it must be worrying to some that their heirs are not fiscally prudent and will either spend the money carefully saved or earned through hard work. With literally billions being transferred [...]

10 things I wish someone had told me when I started a business

Posted by on June 15, 2010 in entrepreneur

I have been self-employed for over 7 years now. Over that period of time, I have made mistakes on a daily basis. The one story I always tell is starting a business with an ink-jet printer rather than a laser printer because I was trying to save money. After changing ink every other week, I [...]

How to hold yourself accountable to financial goals

Posted by on June 14, 2010 in Investment Strategy

Despite the myriad of strategies and products on the market, one of the fundamental issues on why some investors do not reach their financial goals is lack of personal accountability.  As Michael James recently commented, the forces of inertia and fear of change can cripple an investor even when such an investor knows better than [...]

Is BP done?

Posted by on June 9, 2010 in Misc.

In world quick to jump to conclusion, speculation has arisen whether the clean-up costs of the oil spill in the Gulf of Mexico will undo BP. Some have estimated that the total cost to BP resulting from the oil spill (direct clean up costs, damages from lawsuits, fines from government) could reach $40 billion or [...]

The end of unlimited data plans?

Posted by on June 8, 2010 in General Information

AT & T announced last week that it was doing away with its unlimited data plans in lieu of cheaper entry points for data.  The move was widely perceived to improve network quality and will most likely be the first of many similar announcements by other cellphone carriers. Smart Phones can use up to 7 [...]