A woman had just returned to her home from an evening of church
services, when she was startled by an intruder. She caught the man in the
act of robbing her home of its valuables and yelled: 'Stop! Acts 2:38!'
(Repent and be Baptized, in the name of Jesus Christ, so that your sins
may be forgiven.)
The burglar stopped in his tracks. The woman calmly called the police and
explained what she had done.
As the officer cuffed the man to take him in, he asked the burglar: 'Why
did you just stand there? All the old lady did was yell a scripture to
you.'
'Scripture?' replied the burglar. 'She said she had an Ax and Two 38s!'
Send this to someone who needs a laugh today and remember: Knowing
scripture can save your life - in more ways than one!
Tuesday, June 8, 2010
Saturday, May 15, 2010
View rmvb movie with .srt sub file
I have been trying to show sub titles for RMVB files with srt and found of cos from our best friend google.com...
You gotta install 2 things Real Alternative and DirectVobSub:
You can download the player at http://www.free-codecs.com/Real_Alternative_download.htm
You can download DirectVobSub from http://www.free-codecs.com/directvobsub_download.htm
You gotta install 2 things Real Alternative and DirectVobSub:
Real Alternative
You do need a player that is capable of playing RealMedia. The included Media Player Classic supports it and works very well. Supported: RealAudio (.ra .rpm), RealMedia (.rm .ram .rmvb .rpx .smi .smil), RealText (.rt), ReadPix (.rp), RealMedia embedded in webpages. .smi and .smil files sometimes only play the first part of a clip. This is a limitation of the current Media Player Classic. The RealMedia Browser plugin supports Internet Explorer, Opera, Netscape and Mozilla.
Some advantages compared to RealPlayer :
- Quick and easy install
- It's easy to make an unattended installation
- Proper uninstallation
- No background processes
- Use a player of your own choice
- Low on resources
- No advertising, no registration forms, nothing annoying
Limitations :
- .smi and .smil files only play the first part of a clip. This is only a problem when the clip consists of multiple parts. These files are not very common. These files do play correctly when embedded in a browser.
- The RealMedia DirectShow splitter does not work with streaming content. You must use the included Media Player Classic to play streaming content.
Features of Real Alternative 2.0.2 :
- Media Player Classic [version 6.4.9.1-107]
- RealMedia Codecs [version 12.0.0.301]
- RealMedia plugin for Internet Explorer
- RealMedia plugin for Opera/Mozilla/Netscape/Google Chrome
- RealMedia DirectShow splitter [version 1.3.1268.0]
Features of Real Alternative 2.0.2 Lite :
- RealMedia Codecs [version 12.0.0.301]
- RealMedia plugin for Internet Explorer
- RealMedia plugin for Opera/Mozilla/Netscape/Google Chrome
- RealMedia DirectShow splitter [version 1.3.1268.0]
The only difference between the regular and lite versions is that the lite version does not include Media Player Classic.
Real Alternative Lite allows you to play RealMedia files in all DirectShow enabled players. Without this filter RealMedia files can only be played in Media Player Classic. This filter only works with files that are on your harddrive. It does NOT work with streaming content. Therefore it is highly recommended to use Media Player Classic, because MPC does support streaming content.
Changes in Real Alternative 2.0.2 :
- Updated Media Player Classic to version 6.4.9.1 rev. 107
- Minor changes
• Real Alternative 2.0.1
- Updated Media Player Classic to 6.4.9.1 rev. 104
- Updated RealMedia codecs to 12.0.1.301
- Updated RealMedia Browser plugin to 12.0.1.301
- Updated RealMedia DirectShow splitter to 1.3.1268.0
- The RealMedia Browser plugin now also works with Internet Explorer 8
- Minor fixes and improvements
You can download the player at http://www.free-codecs.com/Real_Alternative_download.htm
DirectBobSub
Changes in DirectVobSub (VSFilter) 2.39 [2008-08-28] :
- VSFilter: Improved performance with handling the \be tag.
- VSFilter: Fixed freeze that occurred with the combination MPC + VSFilter + Haali Video Renderer.
How to install DirectVobSub :
If you are unable to install the filter, please read this small guide: How to install/uninstall DLL and AX codec files from Guides section.
You can download DirectVobSub from http://www.free-codecs.com/directvobsub_download.htm
Saturday, May 8, 2010
Bigger Natural Breast?
Great news for those who wants to have better breast and does not like the fake plastic stuff in you!!
Stem Cell Breast Enlargement Dooms Flatness
OMG with the stem cell technique, breast treated are more natural and of cos with the same softness >.< sadly even though it will restore volume, it will not provide firmness and uplift....
Original post from Sunday Times
Stem Cell Breast Enlargement Dooms Flatness
Stem cell therapy now offers the prospect of “naturally” enlarged breasts, free of surgical implants.
The technique involves extracting stem cells from the fat of the stomach or thighs and inserting them into the mammaries, where they join the breast tissue, increasing the size of the breast as a result.
The procedure offers some significant advantages over traditional “augmentation.”
Unlike breasts enhanced with artificial implants, breasts treated with stem cells will feel natural, having the same softness and fluidity as natural breasts due to being constituted of the same mixture of glandular fat and water.
Further, implants often have long-term complications and may require replacements. They can also leak and cause scarring and nerve damage, to say nothing of the risks of failed surgery.
Implanted stem cells also promote the growth of blood vessels, ensuring sufficient blood circulation. Procedures that merely moved fat into a woman’s breasts were problematic to the lack of blood supply to the implanted fat.
The technique was pioneered in Japan, initially to treat women with deformities caused by breast cancer. Recently, the technique has also been used for cosmetic enhancements and has begun clinical trials in Britain.
The stem cell treatment appears currently only to be able to provide modest increases in breast size. While scientists are confident in increases of one cup size, only further research will determine if larger augmentations are possible.
Doctors also caution that the current technique only restores volume but does not provide firmness and lift. Those wishing to avoid unappealing ptosis whilst gaining even more volume will have to wait.
In addition, the process takes several months as the extracted fat is mixed with stem cells in batches and gradually implanted to achieve the desired shape and size.
The procedure is expected to become available in 6 months, costing some £6,500.
OMG with the stem cell technique, breast treated are more natural and of cos with the same softness >.< sadly even though it will restore volume, it will not provide firmness and uplift....
Original post from Sunday Times
A STEM cell therapy offering “natural” breast enlargement is to be made available to British women for the first time.
The treatment could boost cup size while reducing stomach fat. It involves extracting stem cells from spare fat on the stomach or thighs and growing them in a woman’s breasts. An increase of one cup size is likely, with the potential for larger gains as the technique improves.
A trial has already started in Britain to use stem cells to repair the breasts of women who have had cancerous lumps removed. A separate project is understood to be the first in Britain to use the new technique on healthy women seeking breast enlargement.
Professor Kefah Mokbel, a consultant breast surgeon at the London Breast Institute at the Princess Grace hospital, who is in charge of the project, will treat 10 patients from May. He predicts private patients will be able to pay for the procedure within six months at a cost of about £6,500.
“This is a very exciting advance in breast surgery,” said Mokbel. “They [breasts treated with stem cells] feel more natural because this tissue has the same softness as the rest of the breast.” He said the treatment offered the potential of considerable improvement on implants: “Implants are a foreign body. They are associated with long-term complications and require replacement. They can also leak and cause scarring.”
Although the stem cell technique will restore volume, it will not provide firmness and uplift.
Mokbel believes the stem cell treatment may be suitable only for modest increases in breast size, but will conduct research to find out whether larger augmentations can be achieved: “We are optimistic we can easily achieve an increase of one cup size. We cannot say yet if we can achieve more. That may depend on the stem cells we can harvest.”
The cells will be isolated from a woman’s spare fat, once it has been extracted from her thighs or stomach, using equipment owned by GE Healthcare, a technology company. The concentrated stem cells will then be mixed with another batch of fat before being injected into the breast. It takes several months for the breast to achieve the desired size and shape.
Until now, when fat was transplanted to the breast without extra stem cells, surgeons had difficulty maintaining a blood supply to the new tissue. Surgeons believe the double concentration of stem cells under this technique promotes the growth of blood vessels to ensure a sufficient blood supply circulates to the transplanted fat.
The same technique has been used in Japan for six years, initially to treat women with breast deformities caused by cancer treatment and, more recently, for cosmetic breast augmentation in healthy women.
Mokbel is confident the therapy is safe and that, after carrying out about 30 procedures, the London Breast Institute will be able to offer the procedure to private patients.
The use of stem cells in healthy women undergoing cosmetic surgery is controversial. Medical bodies have warned that the breast enlargements should not be offered to healthy women until large-scale trials in cancer patients have shown that the new technology is safe and effective. The treatment is not yet routinely available to women solely for cosmetic purposes.
Eva Weiler-Mithoff, a consultant plastic surgeon at Canniesburn hospital in Glasgow, is leading the British arm of a European trial of stem cell therapy for women who have been left with breast deformities following removal of cancerous lumps.
So far more than a dozen British cancer patients have been treated and Weiler-Mithoff is impressed with the results. She does not believe this justifies offering the treatment to healthy women, however.
She said that while breast cancer patients regularly attend follow-up appointments, young women who have had cosmetic surgery are less likely to do so and complications could be missed.
Thursday, May 6, 2010
Couples & their sex life
The NEW Paper
It seems that such cases are not rare...I heard from a friend that she had a friend who had to go to a doctor just to learn how to have sex. They spent around 10 K on the sessions with the doctor. After the sessions with the doctor, the husband and wife are able to have sex together with no problem.
I guess since our life style had changes drastically...and on top having to keep up with the fast speed society that we have... a lot of young couples might face such difficulty...we should be open to seek help from doctors or even look up on the internet on how to deal with such matters.
Her body tensed up when hubby wanted sex
Married woman was virgin for 10 years due to sexual condition
By Benson Ang
May 03, 2010
She could not have sex with her husband of 10 years because whenever they tried, her body would tense up.
Melissa (not her real name), 35, suffered from an unusual sexual condition called vaginismus, in which the muscles around the vagina involuntarily tighten, making intercourse painful or impossible.
The Ministry of Health does not track the number of vaginismus cases here, but Professor P. Ganesan Adaikan, clinical sexologist from the National University Hospital, and Dr B. Srilatha, a research fellow at National University of Singapore who specialises in obstetrics and gynaecology, told The New Paper that they see 20 to 30 such cases a year.
The condition has also been documented by Dr V.Atputharajah, an obstetrician and gynaecologist from Mount Alvernia Hospital, who wrote about it in his book Virgin Wives: Women With Unconsummated Marriages.
Melissa solved her problem after meeting with Dr Martha Lee, a clinical sexologist, who proposed a series of treatments, including breathing techniques to make Melissa feel more comfortable with her body.
In less than two weeks, before the third session with Dr Lee, she succeeded in having sex with her husband.
Dr Lee added that the cause of vaginismus is usually psychological. Other doctors we spoke to said this condition can also be treated through education, exercise and surgery.
It seems that such cases are not rare...I heard from a friend that she had a friend who had to go to a doctor just to learn how to have sex. They spent around 10 K on the sessions with the doctor. After the sessions with the doctor, the husband and wife are able to have sex together with no problem.
I guess since our life style had changes drastically...and on top having to keep up with the fast speed society that we have... a lot of young couples might face such difficulty...we should be open to seek help from doctors or even look up on the internet on how to deal with such matters.
Monday, May 3, 2010
Funeral Preparation
Most people will not fight about the cost of Wedding or Funeral...Especially for funeral...Who in the right mind will be negotiating the price when it comes to preparing for funeral?
My friend's dad passed away recently and our group of friends kind of helped out with the funeral a duration of 5 days...
Sadly before that we already prepared and looked for casket companies quotations...Imagine all the different companies we looked for the prices of packages were like at least 5K to have the funeral below at the void deck...Yes funeral package...you would think that only marriage have packages right?
Lucky for us...we managed to get a basic package from Direct Funeral Services to help out for the funeral. I would like to comment that they are really honest people...makes people feel at ease actually...an elderly guy (who help out in catering) appeared one of the days and commented that they try and charge minimal...they don't try to earn from people...usually I see these companies try and squeeze as much as they can from the deceased family...but with the minimal requirement that my friend had requested the funeral package still sums up to 9K...she had asked to have the whole ceremony to be in Buddhism way and with that the package comes with coffin, embalming, lightings, fans, bus for the last day, buffet food for 1 day for 30 people etc...on top of that the extra things that were used during the funeral e.g toilet, toilet paper, stationary, drinks, fridge etc all sums up to around 600 plus!!
Renting for void deck from the town council was like $120, OMG...thats killer...just a simple 5 days event downstairs can drain so much from the living...how can a normal family afford around 10k of expenditure within just 5 days? I would say that the funeral has all the basic that should be covered for a Buddhism funeral but one thing her mum requested that burning of house is important and needs to be done...so that sums up to 1K for the monk chanting service plus joss paper and burning of house...
I always believe that we should not be angry when it comes to funeral...all should be done with due respect to the deceased. However, I was really upset when my friend's uncle came to the wake...firstly he was talking so loudly...then he was telling every one this and that...he was especially reprimanding that since the funeral is done in Buddhism style then burning of houses is not necessary...he added that the casket company is so bad added that in just to earn more money...
How can he say such thing when he did not know what is going on?? OMG its like on the last few days of the funeral already then her uncle came along and make so much noise about such thing...He should have done that in the first place if he is so knowledgeable!!! He should have came on the first day and explained to us about it right!????!!! I hate it when people try and comment when all things are done and fixed (or rather confirmed) Fact is that my friend's mum wanted the house...so just for her peace of mind, my friend decided to have it...what's wrong with it?
If you want to complain…then what makes me? I a Christian?!!?? Helping out in a Buddhist funeral, and since there are joss paper to fold I helped to fold and best part??!! Nobody know how to fold the “wang shen qian”. End up I had to teach everyone how to do it. OMG how ironical….
Things that I can conclude from helping out:
1. No matter how much you have, you gotta do the minimal respect for the deceased.
2. You still have to think about the living. So spend within your means
3. As friends and relative, this is the time that you are needed the most, just help out as much as you can.
4. Please don’t comment too much, as long as the deceased family is happy and feel good about it, there shouldn’t be anything that you should complain about.
It was really tiring since we had to make sure that the stray animals don't come around the wake area, especially near the coffin... I wonder why the casket company can't make the tent in such a way that no animals...or rather nothing can be able to go through the tentage and get to the area where the coffin is being placed? Strange....something I have been puzzled about...
My friend's dad passed away recently and our group of friends kind of helped out with the funeral a duration of 5 days...
Sadly before that we already prepared and looked for casket companies quotations...Imagine all the different companies we looked for the prices of packages were like at least 5K to have the funeral below at the void deck...Yes funeral package...you would think that only marriage have packages right?
Lucky for us...we managed to get a basic package from Direct Funeral Services to help out for the funeral. I would like to comment that they are really honest people...makes people feel at ease actually...an elderly guy (who help out in catering) appeared one of the days and commented that they try and charge minimal...they don't try to earn from people...usually I see these companies try and squeeze as much as they can from the deceased family...but with the minimal requirement that my friend had requested the funeral package still sums up to 9K...she had asked to have the whole ceremony to be in Buddhism way and with that the package comes with coffin, embalming, lightings, fans, bus for the last day, buffet food for 1 day for 30 people etc...on top of that the extra things that were used during the funeral e.g toilet, toilet paper, stationary, drinks, fridge etc all sums up to around 600 plus!!
Renting for void deck from the town council was like $120, OMG...thats killer...just a simple 5 days event downstairs can drain so much from the living...how can a normal family afford around 10k of expenditure within just 5 days? I would say that the funeral has all the basic that should be covered for a Buddhism funeral but one thing her mum requested that burning of house is important and needs to be done...so that sums up to 1K for the monk chanting service plus joss paper and burning of house...
I always believe that we should not be angry when it comes to funeral...all should be done with due respect to the deceased. However, I was really upset when my friend's uncle came to the wake...firstly he was talking so loudly...then he was telling every one this and that...he was especially reprimanding that since the funeral is done in Buddhism style then burning of houses is not necessary...he added that the casket company is so bad added that in just to earn more money...
How can he say such thing when he did not know what is going on?? OMG its like on the last few days of the funeral already then her uncle came along and make so much noise about such thing...He should have done that in the first place if he is so knowledgeable!!! He should have came on the first day and explained to us about it right!????!!! I hate it when people try and comment when all things are done and fixed (or rather confirmed) Fact is that my friend's mum wanted the house...so just for her peace of mind, my friend decided to have it...what's wrong with it?
If you want to complain…then what makes me? I a Christian?!!?? Helping out in a Buddhist funeral, and since there are joss paper to fold I helped to fold and best part??!! Nobody know how to fold the “wang shen qian”. End up I had to teach everyone how to do it. OMG how ironical….
Things that I can conclude from helping out:
1. No matter how much you have, you gotta do the minimal respect for the deceased.
2. You still have to think about the living. So spend within your means
3. As friends and relative, this is the time that you are needed the most, just help out as much as you can.
4. Please don’t comment too much, as long as the deceased family is happy and feel good about it, there shouldn’t be anything that you should complain about.
It was really tiring since we had to make sure that the stray animals don't come around the wake area, especially near the coffin... I wonder why the casket company can't make the tent in such a way that no animals...or rather nothing can be able to go through the tentage and get to the area where the coffin is being placed? Strange....something I have been puzzled about...
Tuesday, April 27, 2010
Uncalled for attention on FaceBook
I happened to see a piece of news that my colleague has left opened on my PC.
The news posted on Asiaone.com is as follows:
All these uncalled for comments is due to technology...2 points of views here...1. Poor guy died of accident’ 2. poor guy got upset frustrated (even though he shouldn't, what’s 45 mins compared to a life?) due to traffic jam.
Imagine a day without technology, you are frustrated and you do not have facebook to vent your frustration...all you can do is to just scream loudly in your car and that’s all > . < nothing will happen...no uncalled for attention, no comments from different people...and most importantly we will not be able to know that there is such a person in this world that gave such comment...
The POWER of technology....or rather power of facebook....
The news posted on Asiaone.com is as follows:
A*STAR staff condemns dead rider in ECP accident for delay
READERS are outraged by a man who condemned a rider killed in an ECP accident for causing a 45-minute delay and incurring $3 ERP charge.
The man claims to be an A*STAR employee in his Facebook profile.
One reader, Timothy wrote:
"This guy, an A*STAR employee as stated in his Facebook profile, made light of the death of a motorcyclist along East Coast Parkway (ECP) by posting insensitive comments on his Facebook wall.
"He claims that the death of the rider caused him to be delayed by 45 minutes and incurred $3 in ERP charges. "With this as a justification, he condemns the rider to hell -- 'he's probably going to hell because of that,' wrote the user in his Facebook status bar."
Timothy added that the guy did not even have a sense of remorse after being chided by his friends.
"In response to chiding from his friends, the A-Star employee remained self-righteous. 'I can phrase it even more terribly...speeding is the pathway to hell. They need to learn'" he writes.
"The Facebook user goes on to joke about the rider's death by saying, 'the deceased has been granted a long permanent break,' in response to comment asking him to 'give (the deceased) a break.'
"The local riding community at Singapore Bikes Forums is incensed, with a flurry of enraged responses to the Facebook user's statements, which have been uploaded to the site since 11.46pm yesterday.
In another e-mail, reader Ronald wrote:
"This guy made such an uncalled comment on a rider who had an accident and passed away just because of $3 and 45 minutes of his insignificant life.
"It is insulting to the deceased."
All these uncalled for comments is due to technology...2 points of views here...1. Poor guy died of accident’ 2. poor guy got upset frustrated (even though he shouldn't, what’s 45 mins compared to a life?) due to traffic jam.
Imagine a day without technology, you are frustrated and you do not have facebook to vent your frustration...all you can do is to just scream loudly in your car and that’s all > . < nothing will happen...no uncalled for attention, no comments from different people...and most importantly we will not be able to know that there is such a person in this world that gave such comment...
The POWER of technology....or rather power of facebook....
Thursday, April 15, 2010
The Power of Compounding
Most of us must be thinking how to earn more money and also how to get more out of the money we have earned through out our life time....
I got this below from a website publised by Richard Russell. Please visit Dow Theory Letters to learn more.
Rich Man, Poor Man (The Power of Compounding)
MAKING MONEY: The most popular piece I've published in 40 years of writing these Letters was entitled, "Rich Man, Poor Man." I have had dozens of requests to run this piece again or for permission to reprint it for various business organizations.
Making money entails a lot more than predicting which way the stock or bond markets are heading or trying to figure which stock or fund will double over the next few years. For the great majority of investors, making money requires a plan, self-discipline and desire. I say, "for the great majority of people" because if you're a Steven Spielberg or a Bill Gates you don't have to know about the Dow or the markets or about yields or price/earnings ratios. You're a phenomenon in your own field, and you're going to make big money as a by-product of your talent and ability. But this kind of genius is rare.
For the average investor, you and me, we're not geniuses so we have to have a financial plan. In view of this, I offer below a few items that we must be aware of if we are serious about making money.
Rule 1: Compounding: One of the most important lessons for living in the modern world is that to survive you've got to have money. But to live (survive) happily, you must have love, health (mental and physical), freedom, intellectual stimulation -- and money. When I taught my kids about money, the first thing I taught them was the use of the "money bible." What's the money bible? Simple, it's a volume of the compounding interest tables.
Compounding is the royal road to riches. Compounding is the safe road, the sure road, and fortunately, anybody can do it. To compound successfully you need the following: perseverance in order to keep you firmly on the savings path. You need intelligence in order to understand what you are doing and why. And you need a knowledge of the mathematics tables in order to comprehend the amazing rewards that will come to you if you faithfully follow the compounding road. And, of course, you need time, time to allow the power of compounding to work for you. Remember, compounding only works through time.
But there are two catches in the compounding process. The first is obvious -- compounding may involve sacrifice (you can't spend it and still save it). Second, compounding is boring -- b-o-r-i-n-g. Or I should say it's boring until (after seven or eight years) the money starts to pour in. Then, believe me, compounding becomes very interesting. In fact, it becomes downright fascinating!
In order to emphasize the power of compounding, I am including this extraordinary study, courtesy of Market Logic, of Ft. Lauderdale, FL 33306. In this study we assume that investor (B) opens an IRA at age 19. For seven consecutive periods he puts $2,000 in his IRA at an average growth rate of 10% (7% interest plus growth). After seven years this fellow makes NO MORE contributions -- he's finished.
A second investor (A) makes no contributions until age 26 (this is the age when investor B was finished with his contributions). Then A continues faithfully to contribute $2,000 every year until he's 65 (at the same theoretical 10% rate).
Now study the incredible results. B, who made his contributions earlier and who made only seven contributions, ends up with MORE money than A, who made 40 contributions but at a LATER TIME. The difference in the two is that B had seven more early years of compounding than A. Those seven early years were worth more than all of A's 33 additional contributions.
This is a study that I suggest you show to your kids. It's a study I've lived by, and I can tell you, "It works." You can work your compounding with muni-bonds, with a good money market fund, with T-bills or say with five-year T-notes.
Rule 2: DON'T LOSE MONEY: This may sound naive, but believe me it isn't. If you want to be wealthy, you must not lose money, or I should say must not lose BIG money. Absurd rule, silly rule? Maybe, but MOST PEOPLE LOSE MONEY in disastrous investments, gambling, rotten business deals, greed, poor timing. Yes, after almost five decades of investing and talking to investors, I can tell you that most people definitely DO lose money, lose big time -- in the stock market, in options and futures, in real estate, in bad loans, in mindless gambling, and in their own business.
RULE 3: RICH MAN, POOR MAN: In the investment world the wealthy investor has one major advantage over the little guy, the stock market amateur and the neophyte trader. The advantage that the wealthy investor enjoys is that HE DOESN'T NEED THE MARKETS. I can't begin to tell you what a difference that makes, both in one's mental attitude and in the way one actually handles one's money.
The wealthy investor doesn't need the markets, because he already has all the income he needs. He has money coming in via bonds, T-bills, money market funds, stocks and real estate. In other words, the wealthy investor never feels pressured to "make money" in the market.
The wealthy investor tends to be an expert on values. When bonds are cheap and bond yields are irresistibly high, he buys bonds. When stocks are on the bargain table and stock yields are attractive, he buys stocks. When real estate is a great value, he buys real estate. When great art or fine jewelry or gold is on the "give away" table, he buys art or diamonds or gold. In other words, the wealthy investor puts his money where the great values are.
And if no outstanding values are available, the wealthy investors waits. He can afford to wait. He has money coming in daily, weekly, monthly. The wealthy investor knows what he is looking for, and he doesn't mind waiting months or even years for his next investment (they call that patience).
But what about the little guy? This fellow always feels pressured to "make money." And in return he's always pressuring the market to "do something" for him. But sadly, the market isn't interested. When the little guy isn't buying stocks offering 1% or 2% yields, he's off to Las Vegas or Atlantic City trying to beat the house at roulette. Or he's spending 20 bucks a week on lottery tickets, or he's "investing" in some crackpot scheme that his neighbor told him about (in strictest confidence, of course).
And because the little guy is trying to force the market to do something for him, he's a guaranteed loser. The little guy doesn't understand values so he constantly overpays. He doesn't comprehend the power of compounding, and he doesn't understand money. He's never heard the adage, "He who understands interest -- earns it. He who doesn't understand interest -- pays it." The little guy is the typical American, and he's deeply in debt.
The little guy is in hock up to his ears. As a result, he's always sweating -- sweating to make payments on his house, his refrigerator, his car or his lawn mower. He's impatient, and he feels perpetually put upon. He tells himself that he has to make money -- fast. And he dreams of those "big, juicy mega-bucks." In the end, the little guy wastes his money in the market, or he loses his money gambling, or he dribbles it away on senseless schemes. In short, this "money-nerd" spends his life dashing up the financial down-escalator.
But here's the ironic part of it. If, from the beginning, the little guy had adopted a strict policy of never spending more than he made, if he had taken his extra savings and compounded it in intelligent, income-producing securities, then in due time he'd have money coming in daily, weekly, monthly, just like the rich man. The little guy would have become a financial winner, instead of a pathetic loser.
RULE 4: VALUES: The only time the average investor should stray outside the basic compounding system is when a given market offers outstanding value. I judge an investment to be a great value when it offers (a) safety; (b) an attractive return; and (c) a good chance of appreciating in price. At all other times, the compounding route is safer and probably a lot more profitable, at least in the long run.
Fact is I am not surprise about the above mentioned...I am just amazed how we have not done anything about it...
I got this below from a website publised by Richard Russell. Please visit Dow Theory Letters to learn more.
Rich Man, Poor Man (The Power of Compounding)
MAKING MONEY: The most popular piece I've published in 40 years of writing these Letters was entitled, "Rich Man, Poor Man." I have had dozens of requests to run this piece again or for permission to reprint it for various business organizations.
Making money entails a lot more than predicting which way the stock or bond markets are heading or trying to figure which stock or fund will double over the next few years. For the great majority of investors, making money requires a plan, self-discipline and desire. I say, "for the great majority of people" because if you're a Steven Spielberg or a Bill Gates you don't have to know about the Dow or the markets or about yields or price/earnings ratios. You're a phenomenon in your own field, and you're going to make big money as a by-product of your talent and ability. But this kind of genius is rare.
For the average investor, you and me, we're not geniuses so we have to have a financial plan. In view of this, I offer below a few items that we must be aware of if we are serious about making money.
Rule 1: Compounding: One of the most important lessons for living in the modern world is that to survive you've got to have money. But to live (survive) happily, you must have love, health (mental and physical), freedom, intellectual stimulation -- and money. When I taught my kids about money, the first thing I taught them was the use of the "money bible." What's the money bible? Simple, it's a volume of the compounding interest tables.
Compounding is the royal road to riches. Compounding is the safe road, the sure road, and fortunately, anybody can do it. To compound successfully you need the following: perseverance in order to keep you firmly on the savings path. You need intelligence in order to understand what you are doing and why. And you need a knowledge of the mathematics tables in order to comprehend the amazing rewards that will come to you if you faithfully follow the compounding road. And, of course, you need time, time to allow the power of compounding to work for you. Remember, compounding only works through time.
But there are two catches in the compounding process. The first is obvious -- compounding may involve sacrifice (you can't spend it and still save it). Second, compounding is boring -- b-o-r-i-n-g. Or I should say it's boring until (after seven or eight years) the money starts to pour in. Then, believe me, compounding becomes very interesting. In fact, it becomes downright fascinating!
In order to emphasize the power of compounding, I am including this extraordinary study, courtesy of Market Logic, of Ft. Lauderdale, FL 33306. In this study we assume that investor (B) opens an IRA at age 19. For seven consecutive periods he puts $2,000 in his IRA at an average growth rate of 10% (7% interest plus growth). After seven years this fellow makes NO MORE contributions -- he's finished.
A second investor (A) makes no contributions until age 26 (this is the age when investor B was finished with his contributions). Then A continues faithfully to contribute $2,000 every year until he's 65 (at the same theoretical 10% rate).
Now study the incredible results. B, who made his contributions earlier and who made only seven contributions, ends up with MORE money than A, who made 40 contributions but at a LATER TIME. The difference in the two is that B had seven more early years of compounding than A. Those seven early years were worth more than all of A's 33 additional contributions.
This is a study that I suggest you show to your kids. It's a study I've lived by, and I can tell you, "It works." You can work your compounding with muni-bonds, with a good money market fund, with T-bills or say with five-year T-notes.
Rule 2: DON'T LOSE MONEY: This may sound naive, but believe me it isn't. If you want to be wealthy, you must not lose money, or I should say must not lose BIG money. Absurd rule, silly rule? Maybe, but MOST PEOPLE LOSE MONEY in disastrous investments, gambling, rotten business deals, greed, poor timing. Yes, after almost five decades of investing and talking to investors, I can tell you that most people definitely DO lose money, lose big time -- in the stock market, in options and futures, in real estate, in bad loans, in mindless gambling, and in their own business.
RULE 3: RICH MAN, POOR MAN: In the investment world the wealthy investor has one major advantage over the little guy, the stock market amateur and the neophyte trader. The advantage that the wealthy investor enjoys is that HE DOESN'T NEED THE MARKETS. I can't begin to tell you what a difference that makes, both in one's mental attitude and in the way one actually handles one's money.
The wealthy investor doesn't need the markets, because he already has all the income he needs. He has money coming in via bonds, T-bills, money market funds, stocks and real estate. In other words, the wealthy investor never feels pressured to "make money" in the market.
The wealthy investor tends to be an expert on values. When bonds are cheap and bond yields are irresistibly high, he buys bonds. When stocks are on the bargain table and stock yields are attractive, he buys stocks. When real estate is a great value, he buys real estate. When great art or fine jewelry or gold is on the "give away" table, he buys art or diamonds or gold. In other words, the wealthy investor puts his money where the great values are.
And if no outstanding values are available, the wealthy investors waits. He can afford to wait. He has money coming in daily, weekly, monthly. The wealthy investor knows what he is looking for, and he doesn't mind waiting months or even years for his next investment (they call that patience).
But what about the little guy? This fellow always feels pressured to "make money." And in return he's always pressuring the market to "do something" for him. But sadly, the market isn't interested. When the little guy isn't buying stocks offering 1% or 2% yields, he's off to Las Vegas or Atlantic City trying to beat the house at roulette. Or he's spending 20 bucks a week on lottery tickets, or he's "investing" in some crackpot scheme that his neighbor told him about (in strictest confidence, of course).
And because the little guy is trying to force the market to do something for him, he's a guaranteed loser. The little guy doesn't understand values so he constantly overpays. He doesn't comprehend the power of compounding, and he doesn't understand money. He's never heard the adage, "He who understands interest -- earns it. He who doesn't understand interest -- pays it." The little guy is the typical American, and he's deeply in debt.
The little guy is in hock up to his ears. As a result, he's always sweating -- sweating to make payments on his house, his refrigerator, his car or his lawn mower. He's impatient, and he feels perpetually put upon. He tells himself that he has to make money -- fast. And he dreams of those "big, juicy mega-bucks." In the end, the little guy wastes his money in the market, or he loses his money gambling, or he dribbles it away on senseless schemes. In short, this "money-nerd" spends his life dashing up the financial down-escalator.
But here's the ironic part of it. If, from the beginning, the little guy had adopted a strict policy of never spending more than he made, if he had taken his extra savings and compounded it in intelligent, income-producing securities, then in due time he'd have money coming in daily, weekly, monthly, just like the rich man. The little guy would have become a financial winner, instead of a pathetic loser.
RULE 4: VALUES: The only time the average investor should stray outside the basic compounding system is when a given market offers outstanding value. I judge an investment to be a great value when it offers (a) safety; (b) an attractive return; and (c) a good chance of appreciating in price. At all other times, the compounding route is safer and probably a lot more profitable, at least in the long run.
Fact is I am not surprise about the above mentioned...I am just amazed how we have not done anything about it...
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