How to make $4 billion in 10 months

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Warren Buffett’s stake in Goldman Sachs pays off…in a BIG way

Remember when Warren Buffett told everyone in a NY Times OP-Ed that the key to investing is to “Be greedy (BUY) when others are fearful and to be fearful (SELL) when others are greedy?”  Well, I hope you listened.

Buffett famously took a stake in Goldman last September, at just the time when everyone felt as though the economic sky was falling.  Now that the market is in the process of recovering, and Goldman’s stock has shot up, his investment is now worth about $9.1 billion….about $4.1 billion more than what he paid for it in September.

Not bad for 10 months of work.

Read the entire story here

Former NHL Star Swindled for $43 million

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Fedorov started his NHL career in 1990, originally signing with the Red Wings, where he stayed through the 2002-03 season. (David Guralnick / The Detroit News)

Sergei Fedorov: Financial adviser swiped $43M

Now, I’ve heard of bad business deals before, but I think that this one takes the cake.  Come on…$43 mil…Really?

For nearly 20 years, former Red Wing great Sergei Fedorov has victimized opponents with slick skating and a deadly shot.Now he says he is the victim, swindled out of $43 million by a Grosse Pointe Shores man entrusted to manage his money.

 In a lawsuit expected to be filed Thursday in Wayne County Circuit Court, Fedorov accuses Joseph Zada of embezzling the money during the past 11 years. Describing Fedorov as “a Russian-born individual who has limited knowledge of and experience in investment, legal and financial matters,” the lawsuit says Zada “by deceit and fraud worked his way into the confidence of Fedorov.”

 Zada challenged on Wednesday the amount Fedorov says he gave him, and denied trying to scam him. And he said it was a loan, not an investment.

Zada acknowledged agreeing to pay Fedorov $60 million earlier this year to resolve the matter. Fedorov’s suit says the money was never paid.

Read the entire story here.

UPDATED: Vick Should Be Allowed to Play

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UPDATED: Vick Reinstated by Goodell!

Commissioner Roger Goodell informed Vick that he may participate without delay in preseason practices, workouts, and meetings, and that he can play in his team’s final two exhibition games.

Read the full story here.

———-Original Post———————

I am not just saying this because I work with athletes, but I am having trouble understanding the argument that Michael Vick should not be reinstated into the NFL because “no job should be considered a fundamental right…”.  Huh?

Driving is a privilege.  Understood.  Although Donte Stallworth received what many consider a light sentence for DUI manslaughter, at least his driving privilege was revoked.

Working and earning a living is a right.  We enter a slippery slope when we start to imply that certain jobs are set aside only for a privileged few.  Unless you argue that Michael Vick should not be able to hold ANY JOB, you cannot logically argue (in my opinion) that he should not be given the chance to play in the NFL again.

Let me be clear…he has a right to the OPPORTUNITY to play, he does not have a right to a roster spot.  The owners will make a decision as to whether they want to retain his services.  The owners also have a right to make that decision.

Rob loves the kids!

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SAMS presentation

Friday, I had a great time talking personal finance 101 with junior and senior high school students participating in the Summer Academy for Math and Science (SAMS) program at Carnegie Mellon.

Hopefully I gave them a great head start on taking care of their finances.

What do you wish you knew about money when you were their age?

Cassel Makes the Most of His Opportunity

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Matt Cassel

When opportunity knocks, will you be prepared to make the most of it?

Well, Matt Cassel, a career backup in college and in the pros, parlayed a great 2008 season, during which he made his first start since high school,  into a lucrative franchise tag. Now, he’s locked himself into a deal to be the long-term quarterback of the Kansas City Chiefs.

Cassel and the Chiefs worked out a six-year deal that will pay him in excess of $10 million a season, according to a source. The contract will keep Cassel with the Chiefs until 2014.

The deal is for $63 million, with $28 million guaranteed, according to a source. He’s going to make $40.5 million in the first three years of his contract.

Read the full story here.

The King of Reality TV

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Report: Ryan Seacrest to Be Richest Host on Reality TVRyan Seacrest Signs $45 Million ‘American Idol’ Deal

Reality is paying well these days.  And let’s not forget that he also hosts a radio show and E! News, AND is the Executive Producer of ‘Keeping Up With the Kardashians’ and ‘Denise Richards’ It’s Complicated’….Those contracts are just gravy!  Who said that Howard Stern is the King of All Media?????

Read the full lstory here.

Former Phillie Files For Bankruptcy

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Really?  The publisher of a magazine that provides financial advice to athletes, who also says he is 110-0 on his stock market picks, files for bankruptcy?  Wow!

Pomp and Circum$tance

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Congrats to all the new grads, and those still working to get there.  Here’s how to get started on the right foot…financially speaking of course.

Feeling Overweight? Try Losing Some Debt For a Change.

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Feeling Overweight?

Try Losing Some Debt For a Change.

Have you ever wanted to throw a brick at your TV?  No, not the one with the rabbit ears that won’t work in a few days anyway, I mean your shiny new 42” flat panel LCD HDTV that you swiped from Circuit City just before they went bankrupt.  No?  Well, I have.  I’ve actually heard some people on TV say that Americans should “go out and spend for the good of the country!”  Every time I hear such nonsense I get the urge hurl a large blunt object right through the center of the screen.  If I wasn’t anxiously waiting for the new season of Eastbound and Down I might actually do it.  Where is the Kenny Powers voice of reason when you need it?

How Soon We Forget

What these idiots seem to have forgotten is that a major reason that we landed in this recession is that we spent more than we earned and borrowed more than we could afford.  Let’s put this in context.

  • In the 70s and 80s the savings rate in the U.S. averaged about 10%, meaning folks saved 10% of their after tax income.
  • In 2005, the savings rate dipped into NEGATIVE territory for the first time since the Great Depression
  • The savings rate was a paltry 1.8% by the end of 2008.
  • The rate has since gone up to about 4%, but that still means that 96% of your income is flying out of the window!

 Come on people!  Are we silly enough to think that spending more money is the way to get out of a problem that started by spending too much money?  That’s kind of like suggesting that the cure to your terrible hangover is to down a few more shots of Patron first thing in the morning…right after you hurl. Absurd, right? [Read more...]

With This Receipt I Thee Wed

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Here you go as promised.  Here’s how to have a great wedding day without breaking the bank and starting your life in debt.