Latest news with #GordonGekko
Yahoo
4 days ago
- Business
- Yahoo
Nearly 20 Years as an Investment Adviser Taught Me 6 Absolute Truths About Money Management
After working for a major international brokerage firm, along with my own private asset management company, for nearly 20 years, I've seen it all when it comes to money management. From family feuds over inheritances to middle-class families being able to afford college for their kids, the profession offered me a front-row seat to the highs and lows of personal finance. But through all the ups and downs, a few immutable truths revealed themselves time and time again. Here are the most important lessons I've garnered from my nearly two decades in the industry. Check Out: Read Next: Don't Let Your Emotions Lead You Astray As Michael Douglas's character Gordon Gekko famously says in the movie 'Wall Street,' 'Don't get emotional about stock, it clouds your judgement.' While coming from a fictional character, the sentiment is spot-on. Fear and greed are the two most dominant emotions when it comes to investing in the stock market, and unfortunately, each one seems to pop up at the exact right time to encourage bad decisions. When markets scream higher, investors get euphoric. Conversely, when markets sell off sharply, investors get fearful, sometimes to the point of panic. These dual scenarios lead to situations in which investors buy high and sell low, when they should be doing the exact opposite. In the words of billionaire CEO Warren Buffett, investors should 'be greedy when others are fearful, and fearful when others are greedy.' Don't let your emotions twist this around and lead you to doing the opposite. See More: Your Most Important Financial Obligation Is Saving When asked which financial obligation is the most important, many clients will list mortgage/rent, food and household bills like utilities as essential. And while it's true that all of these bills must be paid, if you prioritize them ahead of your savings, you'll likely find that you end every month without any money at all to invest. This is where the famous mantra 'pay yourself first' comes into play. By setting aside money for your savings and investments before you pay any bills — via automated transfers, of course — you force yourself to live beneath your means. If you find yourself coming up short in terms of paying your monthly expenses, it means it's time to trim your costs, not reduce your savings. Draft a Clear, Unassailable Estate Plan One of the saddest parts of being a financial advisor is watching how families tear themselves apart fighting for 'their share' of an inheritance. Many of these family disputes can be nipped in the bud by drafting a clearly worded estate plan and sharing it with family members ahead of time. When your explicit wishes are mapped in advance and disclosed to all of your beneficiaries, you greatly reduce the chance of in-fighting among family members after your passing. You're Not Likely To Beat the Stock Market Let's be blunt — the average investor doesn't do a very good job at outperforming the stock market. But there's no shame in that; most professional money managers don't consistently beat the S&P 500 over time either. With that in mind, it makes a lot of sense to avoid active trading. Not only are you likely to come up short versus the overall market, day trading also requires extensive time and effort, and any gains you achieve are taxed at higher, short-term capital gains rates. Keep Things Simple All things considered, the best single investment for generating long-term wealth may be a simple S&P 500 index fund. Not only does this 'guarantee' a near-market return, it's simple, easy and cost-effective. Diversification is certainly an option, but be wary of high-cost, complex investments that promise market-beating returns, as they typically come up short. Even Warren Buffett has often said that 'a low-cost index fund is the most sensible equity investment for the great majority of investors.' After he passes, Buffett has instructed the trustee of his estate to place 90% of his assets into an S&P 500 index fund, so he's putting his own personal money where his mouth is. Compound Interest Is a Miracle — but You've Got To Be Patient The saying that compound interest is the 'eight wonder of the world' is often attributed to legendary genius Albert Einstein. But regardless of the true origin of the expression, the sentiment is accurate. If you invest $100,000 at a 6% rate of return, collecting your interest every year, you'll end up with $220,000 after 20 years — $120,000 in income plus your original $100,000 investment. But if you instead reinvest that money every year, so that you earn interest upon interest, you'll end up with closer to $331,000. That's an additional $111,000, or more than 50% more. While some investors understand the power of compounding, many do not realize that you have to be patient to truly reap its benefits. As your compounded balance increases, your returns accelerate. In the above example, if you stopped compounding after 10 years, you'd only earn approximately $82,000. The additional $149,000 is earned in the ensuing 10 years. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 The 5 Car Brands Named the Least Reliable of 2025 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years This article originally appeared on Nearly 20 Years as an Investment Adviser Taught Me 6 Absolute Truths About Money Management Sign in to access your portfolio
Toronto Star
30-07-2025
- Business
- Toronto Star
Oh, the heat is punishing these days but that's not what is making most of us suffer
Michael Douglas as Gordon Gekko in the 1987 movie 'Wall Street' espoused on the virtue of greed, but it's obvious today that greed is killing us. EI Scan Opinion articles are based on the author's interpretations and judgments of facts, data and events. More details
Bloomberg
25-06-2025
- Business
- Bloomberg
We Need More Millionaires and Billionaires in Latin America
We don't have enough millionaires in Latin America. Given that we are talking about the world's most unequal region, already home to some of the richest individuals on Earth, that may sound very Gordon Gecko of me. But hear me out.
The National
01-06-2025
- Business
- The National
Why do Labour want to gamble your pension on the financial markets?
The Chancellor will order pension funds to be consolidated into 'megafunds', which must manage £25 billion in assets by 2030 and have some of this invested in UK firms. The UK Government insists that the interests of savers 'are at the heart of our pension reforms' – but would you bet the house on the British economy if you had it your way? The Government's reasons for reforming the system are straightforward and, most experts will tell you, compelling. Pension funds are huge pots of money which are relatively unproductive. They are invested in safe bets like government bonds, which provide slow and steady returns; perfect for retirement planning. The question the Treasury has dared to ask is this: What if they were really put to work? Instead of coasting along, they could ride the high seas of the private markets. This is, as the Government helpfully pointed out in its press release about the new reforms, a way of generating better pay-outs for pensioners when retirement comes around. It also frees up huge pools of capital to be invested into British businesses, which will hopefully boost the economy and give the Government some breathing room in its self-imposed fiscal straitjacket. But you needn't be Gordon Gekko to work out that high reward is usually accompanied by higher risks. By encouraging pension funds into the opaque and volatile world of private investment, the Government is straightforwardly putting people's life savings at the mercy of the market's vagaries. READ MORE: Experts warn Labour's pension reforms pose 'high risks' for savers Think of the 2008 financial crash. Mortgages were sold to people who couldn't afford them and investors packaged them as profitable financial products for speculation. For a time, it was fantastic. It fuelled economic growth and made homeowners out of Americans who would otherwise have been priced out of the market. But when the boom turned to bust – as it always must – the consequences were more painful as the speculation was not based on abstract capital but the roofs over people's heads. The last Labour government suffered from an overconfidence in the power of financial markets. Remember Gordon Brown (below) hailing the end of boom and bust? (Image: PA) It appears Labour continue to suffer from the same malaise. Add to this other risks. By directing the pensions of British workers to be invested into the British economy, the Government is telling funds to put all their eggs in one basket, breaking the most elementary rule of investing. If the economy tanks, the funds tied up in these companies suffer and pensioners take a double hit. Now they're in a recession and the value of their pension has tanked. Elsewhere, there are whispers that by encouraging pension funds to invest in private markets, pension funds may divest from the bond market in large enough numbers to bring up interest rates. This could lead to businesses struggling to borrow money – the key problem these reforms are intended to address. The question is this: Would you trust Rachel Reeves with your pension? Perhaps ask her for a close look at her CV before answering that.
Times
23-05-2025
- Entertainment
- Times
Outdoor courts and influencers — a whole new ballgame for squash
In the Eighties and Nineties it was often the squash court where business was done. Such was the racket sport's prominence among the elite that Gordon Gekko, in the 1987 filmWall Street, used his prowess on the court to slap down a young stockbroker hoping to rise up the ranks. But the number of people playing squash has since dropped. Participation is down 10 per cent on pre-pandemic levels, with the growth of so-called 'trendy' racket sports such as padel and pickleball partly to blame. But squashis planning a resurgence, with sports organisations seeking promotion from social media influencers and a plan to build outdoor courts. 'Outdoor courts really could be the future,' said Mark Williams, chief executive of England Squash, the sport's governing body. 'There's no reason you can't play outdoors in England, we just don't have those facilities.' The UK has only a handful of outdoor facilities. These are perspex or fenced mini-courts aimed at schoolchildren. Instead, a new outdoor court prototype, recently unveiled in Chicago, is the big hope. Developed by a Dutch engineer, the modular court has glass walls, a steel frame and a rubber floor that drains rainwater easily. It is also soundproof, unlike padel, which has residents living near courts comparing the sound of the ball hitting the racket to gunshots. Williams said plush outdoor courts could also help address squash's 'image problem'. Some of the UK's estimated 3,500 courts are set in the basements of 'tired' leisure facilities built in the 1970s and 1980s. By comparison many of the UK's 900 padel courts are set in more salubrious locations from the Hurlingham Club in Fulham to Queen's Club in West Kensington. Mike Dale, a journalist specialising in padel and squash, said: 'Padel is very on trend. Lots of celebrities are playing, the padel club is a place to see and be seen. 'Look at Padium in Canary Wharf. You've got a nine-court padel club in the middle of skyscrapers in plum bankers territory. Fifty years ago that would have been a squash club. 'I think squash has a massive opportunity to rise on wings of padel and pickleball. Their growth doesn't have to be at the detriment of squash.' The actress Emma Watson, the Princess of Wales and the rapper Stormzy have all been seen playing padel, and squash is hoping to capitalise from celebrity enthusiasts in a similar way. Williams said: 'If we are able to have a few celebrities and social media influencers playing squash and talking about squash in a positive light that will be really good for us. 'If David Beckham wants to play squash we can make that happen next time he is in the UK for sure.' He added: 'Martin Freeman used to be a good squash player but the celebrities tend to play it on the quiet.' • Pickleball or padel? How to pick your new favourite sport Authorities also hope the decision to include squash in the Olympic Games for the first time in 2028 will boost participation, especially if a Briton brings home gold from Los Angeles. England Squash's youth engagement programmes such as 'Squash from the Mosque' are also seeking to attract a new audience to the sport. However, others are more sceptical about the longevity of padel's popularity. 'Padel will go through the same curve as squash is going through at the moment,' said Markus Gaebel, an expert in squash facilities. 'The trend will be combining facilities with padel, squash and pickleball because they all help each other.' For Gaebel there is no doubt which sport is the most challenging: 'Those who want to be more athletic are squash players. Squash is a physical type of chess.'
