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The Dark Side of Student Loans
Issue #528, June 25, 2018

The Cost of Out-sourcing Convenience
Issue #527, June 18, 2018

Social Security: 66 or 70?
Issue #526, June 11, 2018

Student Loans: There’s (Unfortunately) a Lot More!
Issue #525, June 04, 2018

Co-signing a Note
Issue #524A, May 31, 2018

The Knight Frank Luxury Index and Collectables
Issue #524, May 28, 2018

The Importance of Diversification: The Myth of Diversification
Issue #523, May 21, 2018

How to Save Thousands on Your Food Bill
Issue #522, May 14, 2018

MoviePass and Other Things
Issue #521A, May 10, 2018

Degree Inflation, Long Training Periods, and “Certification”  Part III
Issue #521, May 07, 2018

Degree Inflation, Long Training Periods, and Certification” Part II of III
Issue #520, April 30, 2018

Follow-up on Several Things
Issue #519A, April 25, 2018

Degree Inflation, Long Training Periods, and “Certification”: Part I of II
Issue #519, April 23, 2018

The Kids Birthday Party Hustle
Issue #518A, April 18, 2018

A Pension Question: Part II of II
Issue #518, April 16, 2018

A Physician is an Executive
Issue #517A, April 11, 2018

A Pension Question: Part I of II
Issue #517, April 09, 2018

Is the Correction Over?
Issue #516A, April 05, 2018

Used Car Dealers, Student Loans, the Chinese, and Uncle George’s Rule
Issue #516, April 02, 2018

Starter Homes
Issue #515, March 26, 2018

Redecorating: Beware!
Issue #514, March 19, 2018

NASDAQ Closes at Record High
Issue #513, March 12, 2018

A 40% Chance
Issue #512, March 05, 2018

Several Things
Issue #511, February 27, 2018

Human Capital, Education and Wealth
Issue #510, February 19, 2018

Another Stock Market Update
Issue #509A, February 18, 2018

Some Thoughts on Savings
Issue #509, February 12, 2018

A Stock Market Upfate
Issue #508S, February 10, 2018

Who Can You Trust? Part II of II
Issue #508, February 05, 2018

The Christmas Decoration Pre-worn Jeans Hustle
Issue #Interim Bulletin #507A, February 03, 2018

2018 Outlook for Financial Markets
Issue #507, January 29, 2018

Who Can You Trust? Part I of II
Issue #506, January 22, 2018

Life Insurance Settlements
Issue #505, January 15, 2018

Commodities and Buying the Breakout
Issue #504, January 08, 2018

Buffett Wins His Bet
Issue #503A, January 04, 2018

Practice Real Estate and Free Agency
Issue #503, January 01, 2018

Outlook for 2018: Part III: Stocks and Bonds
Issue #502, December 25, 2017

My Outlook for 2018: Part Ii: Precious Metals
Issue #501A, December 21, 2017

Outlook for 2018: Hard Assets: Part I of III
Issue #501, December 18, 2017

More Thoughts on Bitcoin
Issue #500A, December 14, 2017

Fees and Good Relations with Bankers
Issue #500, December 11, 2017

Salvator Mundi
Issue #499A, December 07, 2017

Should You Rent or Own a Home?
Issue #499, December 04, 2017

A Gift Subscription
Issue #Interim Bulletin #498A, December 02, 2017

Stocks vs Real Estate: Asset Allocation: Part II of II
Issue #498, November 27, 2017

When Good Enough is Fine
Issue #497A, November 22, 2017

Stocks vs Real Estate: Asset Allocation. Part I of II
Issue #497, November 20, 2017

The Saudi Arrests and the Perils of Foreign Investing
Issue #496, November 13, 2017

Gambling and Las Vegas
Issue #495, November 06, 2017

Some Tips on Auto Insurance
Issue #494, October 31, 2017

Bitcoin and the Digital (Crypto) Currencies
Issue #493, October 23, 2017

The Coming Bear Market: Part II How to Prepare
Issue #492, October 16, 2017

Some Observations on Cemeteries
Issue #Interim Bulletin #491A, October 12, 2017

The Coming Bear Market: Part I: The Myth of Buy and Hold Forever
Issue #491, October 09, 2017

The Market makes New Highs
Issue #490, October 02, 2017

The Importance of a New High
Issue #489, September 25, 2017

A Little Insurance: Wealth, War and Wisdom
Issue #488, September 18, 2017

Some Observations
Issue #487, September 11, 2017

How to be Successful in Your Career
Issue #486A, September 07, 2017

How NOT to Buy a Home
Issue #486, September 04, 2017

This Week in the Market
Issue #485, August 28, 2017

Is the “Trump Bump” Running Out of Gas?
Issue #484, August 21, 2017

Gold is on the Move
Issue #483, August 14, 2017

The Importance of Estimation
Issue #482, August 07, 2017

Buying Art and Collecting: Part II of II
Issue #481, July 31, 2017

Buying Art and Collecting in General, Part I of II
Issue #480, July 24, 2017

Physicians need to be More Forceful: Follow-up
Issue #479, July 17, 2017

Physicians need to be More Forceful
Issue #478, July 10, 2017

Your First “Real” Investment
Issue #477, July 03, 2017

Leasing a Watch: Don’t
Issue #476, June 26, 2017

The Importance of Your Children having a Job
Issue #475, June 16, 2017

The Problem with Medical Student Debt is—the Med Schools
Issue #474, June 12, 2017

Critters and Varmints in your Home and Yard
Issue #473A, June 07, 2017

Leveraged ETFs
Issue #472, May 29, 2017

Leasing a Vehicle: Don’t!
Issue #471, May 22, 2017

Issue #470, May 15, 2017

More on Buying Jewelry
Issue #469, May 08, 2017

Buying Jewelry: Gold, Diamonds and Pearls
Issue #468, April 30, 2017

Thomas Sowell: Part III of III
Issue #467, April 24, 2017

Thomas Sowell: Pat II of III
Issue #466, April 17, 2017

Live Close to Where You Work
Issue #465, April 10, 2017

Medtronic in Hospital Management
Issue #Interim Bulletin #464A, April 07, 2017

Thomas Sowell: Part I of II
Issue #464, April 03, 2017

A Political Contribution a an Investment: Part II of II
Issue #463, March 27, 2017

A Political Contribution as an Investment: Part I of II
Issue #462, March 20, 2017

Buffett Selling Vacation Home
Issue #461, March 13, 2017

Advanced Placement (AP) ourses
Issue #460, March 06, 2017

The Importance of a Credit History
Issue #459A, March 02, 2017

A Credit Card Scam
Issue #459, February 27, 2017

The Electronic Health Reord
Issue #458, February 20, 2017

Issue #457, February 13, 2017

Platinum and Palladium
Issue #456, February 06, 2017

Economic Outlook for 2017: Part II of II
Issue #455A, February 02, 2017

Economic Outlook for 2017: Part I of II
Issue #455, January 30, 2017

A Story From Vegas
Issue #454A, January 25, 2017

Land Donation Deals and the IRS
Issue #454, January 23, 2017

The Theory of Gambler’s Ruin
Issue #453, January 16, 2017

Student Loans: But Wait, There’s More!
Issue #452, January 13, 2017

A Second Home
Issue #Interim Bulletin #451A, January 04, 2017

The Consumer Confidence Index
Issue #451, January 02, 2017


By Robert M. Doroghazi, M.D., F.A.C.C.

Make Full Use of Your Capital Investments

Issue #420, May 30, 2016

    Steel mills and automobile plants have hundreds of millions or even billions of dollars invested in capital equipment. Their goal is to operate 20 or even 21 shifts a week. The money is already spent: the goal is to use it as much as possible. Anything less is a loss. Casinos will comp a $300 room before giving you $50 worth of comps at a casino restaurant because the room was paid for long ago. 
    I have a friend who owns several homes. One is in a big city: I can stay there anytime, whether they’re there or not. Saving a $450 per night hotel bill, with use of a cool place, a 12th story view, and full use of whatever’s in the ice box, generates A LOT of goodwill. They also own a condo in a desirable recreation/resort area. They rent it out enough to break even on overall cost (the IRS has strict rules about such rentals. Check with your accountant or tax attorney). My friend realizes the benefits of using it at their convenience, and notes that real estate tracks inflation.
    Ten years ago a friend and I bought a 73 acre piece of land with a 24 acre lake that I call Bass Central. The land has about 40 pear trees and 100 apple trees that produce enough to cover our expenses. I also have a condo at the Lake of the Ozarks. I love it during the winter, when it’s quiet and there are no boats on the Lake (see below). I rent it out during the summer, when I’d rather spend time fishing at the Orchard.
    What makes me write on this now is that everything in my yard is blooming. Issue #220 (7/30/12) was “Your Yard as Productive Land”. The strawberries I use for ground cover around the patio will produce at least 6 or 7 gallons this year; the blackberries several quarts. The persimmon trees I planted as seeds in the fall of 2008 are blooming for the first time. My garden will be the best ever (if I can keep Bambi and Thumper out): I don’t buy any vegetables from June through November. After having garden-fresh tomatoes all summer, you’ll never eat a store-bought tomato again.
    One of the basic reason for the success of Uber is that it allows people to make money from their second largest capital asset that would otherwise sit idle. It represents an increase in productivity for society. If I were in high school or college, I would sign up for Uber: by pure hustle you can make extra money.
    Hospitals are becoming better about maximizing the use of expensive diagnostic equipment, such as CT scanners and MRIs. Where they don’t do as well are the use of ORs: 10 aren’t enough at 8 AM, whereas all but 1 or 2 sit idle on the evening and night shift. I believe as more physicians and surgeons become hospital employees, and must do what they are told, there will be a trend to more efficient use of the ORs, with elective cases being routinely scheduled in the evening.
    Being more efficient is the same as saving, because time and money are the same. If you can make a better product in the same amount of time, or you can make just as good a product for less, or in this discussion, if you can find a use for something you’ve already paid for and would otherwise sit idle, you’ll be way ahead.   
    Gold and the miners topped out on May 1 after a torrid rally from the lows of mid-December, and have now backed off. Should you “buy the dip”?
    RMD comment: there have been too many false starts, so don’t jump in yet. If gold has bottomed and a new bull market has started, the time to buy will be when the bull market is confirmed by gold breaking to new highs above $1,325.
    In several recent newsletters, I mentioned that banks can profit from the rise in interest rates because they can charge more for their loans. I was talking to a regional bank president this week, who said yes—but 1) the rates would need to rise at least 1 ½% to make a real difference, and 2) rates would need to rise quickly, because so many loans have a floor, and adjust the rates only so often.   
    Student debt is greater than $1.2T. Auto loan balances now exceed $1T, and credit card debt is on track to hit $1T this year.
    RMD comment: Jo Isten (Yo Eesh-ten, accent always on the first syllable, Good God in Hungarian). I’m 1st generation Depression: the specter of that terrible time was ever-present in our home when I was growing up: Stay out of debt, clean your plate, stay out of debt, turn off the lights when you leave a room, don’t go in or out too much because it lets in the warm or cold air (“In again, out again Finnegan” as my mother would say)—and stay out of debt!
    Debt is a financial 4-letter word. We have lost our fear of debt. Debt destroys wealth. An indebted House Officer has no business buying a new set of wheels. In my opinion, if a physician can’t pay cash for a car, you can’t afford it.   
    One of my earliest newsletters (#33, 2/4/08) was “Why Not to Buy a Boat”. I admit: boats are cool, but let the other guy buy it and invite you out: you treat for supper. Boat stand for Break Out Another Thousand. How do you make $1M in the boating industry? Answer: start with $10M.
    From The Rise and Fall of American Growth: The benefits of the internal combustion engine are obvious; the automobile, heavy trucks, the tractor, earth moving equipment, and of course, the airplane.
    Gordon further points out that prior to the auto, ¼ of all American farmland was devoted to produce fodder for the horses. Unlocking the power of fossil fuels increased the land that could grow food for humans by 1/3. Furthermore, a horse produces up to 50 lbs. of manure and a gallon of urine per day, which was deposited wherever the horse put it. The streets of all towns, esp. the large ones like NYC, got pretty nasty. When the horse died, its carcass often just sat there and rotted.
    You know face-time with the grandkids is over when they start to lick the camera.
    I do the programs for our Rotary. I had a rabbi speak on life in present-day Israel.
    1) They are a high-tech juggernaut. See the feature article in the current Forbes. Only the US and China have more Nasdaq-listed companies.
    2) I was going to comment on the rise in anti-Semitism in the ultra-left of US Academia, but someone beat me to it. He wondered why the Jews weren’t being more vocal about this ugly trend. The rabbi commented “This is where we need the support of our Brothers in Christendom.”


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