Invest Like A Farmer

Invest Like A Farmer is an investing blog by T. H. RAPKO AND COMPANY, LLC’s managing member Thomas H. Rapko focused on macroeconomics. It presents Tom’s insights and thoughts on the markets. Although the author expresses a view on the likely future performance of certain investment instruments, each individual should carefully consider his or her investment position in relation to his or her own circumstances and with the benefit of professional advice prior to making any investment decisions.

Showing posts with label walter white. Show all posts

Sunday, August 9, 2015

$401,000…the new 401K

Cash is king, again. Although it might not seem possible, cash has been one of the best performing assets in 2015. Forget the paltry, negligible interest rate return. I'm talking buying power!

Walter White might have had it right amassing a massive stash of cash, indeed, cash actually might be the new 401K

Portable, valuable, and with taxes already paid a pile of cash offer opportunities for purchasing distressed assets for a song.

Consider the killings made in 2008 and 2009 when weathered farmers came down from the hills with their crumpled bags of cash and picked up stocks, bonds, and even more farmland for….cash.

With the Fed poised to begin raising rates, most likely one of many in the coming months, the value of the dollar should subsequently increase.

Thursday, October 17, 2013

"I'm in the empire business."

Walter White aka Heisenberg

Breaking Bad

If you want to Invest Like A Farmer, it is important to know when to plant and when to harvest. So when is a good time to deploy seed capital? As a general rule of the green thumb, it is a good time to deploy seed capital when monopolies "go on sale" (what Wall Street typically refers to as a sell-off, correction, or adjustment.) Having a grocery list of stocks you'd like to buy handy is helpful; it helps identify in advance these empires that can be had for a discount.

A great example was found today in a major transportation company that controls significant land routes west of the Mississippi. Remembering one of the fundamental guidelines, mainly that boring is underrated, this proved to be a nice time to buy. By definition, a monopoly is an empire with branding, scale, scope, moats, pricing, and a variety of other advantages over its competitors.

As financial famers, we always want to have reserve seed money and a shopping list available of potential buys at our disposal; a significant return can often be made on a purchase of a distressed monopoly that is then held and has its dividends reinvested. Boring, and potentially very sexy with our goal of securing a compounding rate of return that ultimately goes exponential. The opportunity of a lifetime usually crosses a financial farmer's plow twice a month, be prepared to sow those seeds.