During the financial crisis I decided to venture off and buy both Fannie Mae and Freddie Mac stock which were listed on the NYSE. They both got delisted and became OTC securities they destroyed people's retirement funds and wealth in the process. I bought shares at 70 and 80 cents I decided to ride it out and more than doubled my money as a result. The other day they were both in the $6 range and I could have sold them but I am doing this investment as a way to learn how delisted companies as important as these two giants will be handled. Had both of these mortgage companies been allowed to fail the U.S. would have surely gone into a depression. I don't advice going overboard with OTC securities they come with more risk than a NYSE or NASDAQ listed stock. I got the money to invest in these stocks by taking risk why not continue using it to take on more risk.
Mortgage rates for a 30 yr fixed are currently at 4.33% and 3.35% for a 15 yr fixed. Rates in spring 2013 were at 3.50% for a 30 yr fixed.
Shares of both securities are down due to a bill that would wind down both federally controlled FNMA and FMCC. On the flip side the chances of the reform bill passing is very small. Investors are hoping that the dividends paid to the government will eventually go to shareholders and this could send the stock into double digits.
Thursday, March 20, 2014
Wednesday, February 26, 2014
How To Become Successful
Whatever your goal in life happens to be success will only come to those that envision the final result way before it has been reached. Picture a marathon runner preparing to race, in his mind he has already crossed the finish line. If he does not know where the finish line is then what is the point of him running he will never stop running or most likely give up quickly. Setting a goal is very important you need to know where you are going. This is the fun part where you dream and you make it as big and exciting as you want. Do not ask for permission just dream and set high goals for yourself. Then you must find a way to get your goal fulfilled to attain success. You need to write down your goal and believe it will happen you need to envision it daily and tell others about it. People may help you, not care or even doubt you. It doesn't matter if others bash your dream the act of saying it aloud increases your probability of success.
When I was starting out as a freshman in college I went ahead and told a pretty girl from my class my dream which at the time was a pretty big one for me. I don't know if she believed me or not but at least she was polite about it. A few semesters later as I found myself working at a gym and other low paying jobs with very little savings I doubted myself and regretted having told my classmate my dream. But that doubt didn't last long I kept telling myself and others about my dream. The work I put in was overwhelming there is no easy way to attain victory. In the process my dream changed it got bigger and I now realize that although the dream I shared with my classmate has changed if I wanted to do so I would be able to carry out what I told her. Telling her my dream ended up being a good thing.
To attain success you need to associate with like minded people. People that will challenge you and encourage you. You also need to find mentors who are currently living your dream so you can learn from them and not waste time trying to figure out all the little details by yourself. If you have the means and time go international and visit people in other parts of the world. I learned plenty by traveling and observing people's routines and every day lives.
As you achieve goals make them bigger or update them if you find new passions. Empower others along the way the same way others empowered you. When you find adversity along the way don't pay much mind to it. Success is always the best answer to jealous, doubtful and arrogant people. Turn the negatives into a positive and you will surely achieve success much faster than if you dwell on the bad situations or people that you will surely come across.
When I was starting out as a freshman in college I went ahead and told a pretty girl from my class my dream which at the time was a pretty big one for me. I don't know if she believed me or not but at least she was polite about it. A few semesters later as I found myself working at a gym and other low paying jobs with very little savings I doubted myself and regretted having told my classmate my dream. But that doubt didn't last long I kept telling myself and others about my dream. The work I put in was overwhelming there is no easy way to attain victory. In the process my dream changed it got bigger and I now realize that although the dream I shared with my classmate has changed if I wanted to do so I would be able to carry out what I told her. Telling her my dream ended up being a good thing.
To attain success you need to associate with like minded people. People that will challenge you and encourage you. You also need to find mentors who are currently living your dream so you can learn from them and not waste time trying to figure out all the little details by yourself. If you have the means and time go international and visit people in other parts of the world. I learned plenty by traveling and observing people's routines and every day lives.
As you achieve goals make them bigger or update them if you find new passions. Empower others along the way the same way others empowered you. When you find adversity along the way don't pay much mind to it. Success is always the best answer to jealous, doubtful and arrogant people. Turn the negatives into a positive and you will surely achieve success much faster than if you dwell on the bad situations or people that you will surely come across.
Wednesday, January 22, 2014
Connecting
I have written a few articles about the importance of interacting with others to further one's career. I now see connecting with others as a healthy way to enjoy life. If you gain the world but can't name a few if not several people that love or care about you what is the point? If you manage to ascend to CEO status but didn't help anybody along the way you will feel empty. Connect with others to help them out and everything else will fall in place.
In statistics it is said that there is no such thing as luck. If you flip a quarter 100 times there is a chance you will get 100 tails and 0 heads. What every day people would call either good luck if you are betting on tails or bad luck if you are betting on heads. In statistics it is all about randomness and the law of large numbers. With that said I do somewhat believe in the concept of luck. I believe that I can influence my luck or create to some degree better luck for myself and my loved ones. If I didn't then I would not do much in life other than eat and sleep. I believe that creating a solid network can give you a better quality of life, job, wife and future.
Most of the people on my network are there because I either created an opportunity to connect with them or a result of me going after them. If I had left it up to luck then 90% of the people on my network I would have never met or interacted with. People on my network from stock traders, IRS employees, artists, real estate agents, doctors working on research (breast cancer to brain) most of them would not be on my network. My life and jobs would have only put a few of these professionals across my path. Not every attempt will be productive or successful but you can't let this stop you from connecting with others.
When connecting with others I know who I can approach and how to approach them. I wouldn't suggest going out to connect with a quant if you have no idea what they do or if you don't have any experience with derivatives or stock trading. Don't purposely set yourself up for failure. If you want to connect with better people you have to work on improving yourself and your skills. You need to show that 800lb gorilla in the room you have something to offer something he can benefit from.
We all know about Michelangelo the sculptor and painter but what we don't always remember is that
he might not have become the best if it were not for the help he received from Lorenzo de Medici.
Lorenzo noticed Michelangelo's unusual talent and moved him into his palace to help educate him.
Michelangelo was thrown into the social circle of the wealthy. He perfected his skills by being among the most prominent people, he studied sculpture under Bertoldo di Giovanni. As good as Michelangelo was he would have not become the Michelangelo we speak of today all on his own.
I don't like waiting for life to bring me the people I need I rather go look for them or interact in places where I can meet what I am looking for. The more your network grows the more you can enjoy life with new exciting opportunities. If you get a bit overwhelmed because you are an introvert take breaks but keep putting yourself out there. I am not an outspoken person but I don't need to be as long as I speak to the right people at the right time.
In statistics it is said that there is no such thing as luck. If you flip a quarter 100 times there is a chance you will get 100 tails and 0 heads. What every day people would call either good luck if you are betting on tails or bad luck if you are betting on heads. In statistics it is all about randomness and the law of large numbers. With that said I do somewhat believe in the concept of luck. I believe that I can influence my luck or create to some degree better luck for myself and my loved ones. If I didn't then I would not do much in life other than eat and sleep. I believe that creating a solid network can give you a better quality of life, job, wife and future.
Most of the people on my network are there because I either created an opportunity to connect with them or a result of me going after them. If I had left it up to luck then 90% of the people on my network I would have never met or interacted with. People on my network from stock traders, IRS employees, artists, real estate agents, doctors working on research (breast cancer to brain) most of them would not be on my network. My life and jobs would have only put a few of these professionals across my path. Not every attempt will be productive or successful but you can't let this stop you from connecting with others.
When connecting with others I know who I can approach and how to approach them. I wouldn't suggest going out to connect with a quant if you have no idea what they do or if you don't have any experience with derivatives or stock trading. Don't purposely set yourself up for failure. If you want to connect with better people you have to work on improving yourself and your skills. You need to show that 800lb gorilla in the room you have something to offer something he can benefit from.
We all know about Michelangelo the sculptor and painter but what we don't always remember is that
he might not have become the best if it were not for the help he received from Lorenzo de Medici.
Lorenzo noticed Michelangelo's unusual talent and moved him into his palace to help educate him.
Michelangelo was thrown into the social circle of the wealthy. He perfected his skills by being among the most prominent people, he studied sculpture under Bertoldo di Giovanni. As good as Michelangelo was he would have not become the Michelangelo we speak of today all on his own.
I don't like waiting for life to bring me the people I need I rather go look for them or interact in places where I can meet what I am looking for. The more your network grows the more you can enjoy life with new exciting opportunities. If you get a bit overwhelmed because you are an introvert take breaks but keep putting yourself out there. I am not an outspoken person but I don't need to be as long as I speak to the right people at the right time.
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