Buffett versus Gross – We have a winner!

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In August, 2010, I wrote about the opposite approaches that arguably two of the most successful investors of all time have taken related to bonds.   Bill Gross not only sold all of the US government debt in the PIMCO Total Return Fund, he was so convinced that the price of US Government debt would drop he went so far as to sell the debt short.  Warren Buffett, on the other hand, felt that US Treasury Bonds were a solid investment ...

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The worst advice EVER!!

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In an article that appeared on Smartmoney.com (http://blogs.smartmoney.com/advice/2011/08/22/when-401k-loans-are-a-smart-move/) on August 23, 2011, Olivia Mitchell from the Wharton School of Business and David Wray of the Profit Sharing / 401(k) Council of America praise those who used 401(k) loans before the market crash of 2008 and the recent market downturn.  Their logic is that since those people sold their stocks while the market was higher and are now paying themselves back at an interest rate of about 4.25%, they get ...

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Bond funds versus individual bonds

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Individual bonds and bond funds have many similarities.  They are both major components of the fixed income portion of your portfolio, both pay interest to their investors on a regular basis and both carry similar risks (call or email me with questions on the risks).  Below are some of the major differences:

A)  The current value of an individual bond in your portfolio does not impact the payments you receive, so its value at any point in time is only of ...

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