More Than Finances

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Professor Pollack’s 3×5 Card of Financial Advice

According to the Forbes article ” Should Financial Advice Cost 1%?” Americans are spending  $233 billion a year to have $15 trillion of investment money professionally managed. What if you could avoid these fees with some simple financial advice?

Well, you can.  In fact, back in 2014 University of Chicago Professor Harold Pollack wrote down the basics on a 3 by 5 card.  Here they are:

3x5 card of financial advice Read More


Tim Grittani Net Worth And What We Can Learn From It

Tim Grittani Net Worth And What We Can Learn From ItTim Grittani net worth is estimated at $2.7 million dollars and likely to increase as time goes on. But, who is he, how did he make all of his money? And how can this help you?

Who Is Tim Grittani?

Tim Gritanni became popular after becoming a student of Timothy Sykes, a guru in penny stocks. He quickly took what he learned and put it to work starting with an investment of just $1,500 and slowly growing to $2.7 million.

How Did Tim Grittani Net Worth Grow?

Now though he did this in a pretty quick time, it wasn’t over night. He didn’t invest his money and the next day make $2.7 million. Instead it took some time, in fact he lost his initial investment completely not fully understanding how to trade and make money.

After losing the initial investment he saved up money from his summer job to reinvest. Not only that he started to learn all he could taking Timothy Sykes courses and putting the material to use.

After six months he was finally back to where he started, and now knew what it would really take to make a living trading penny stocks.

He then moved back home with his parents in January of 2012, under the condition that he make $10,000 by end of March that year. Through hard work, and determination he met that quarter goal.

He then decided to make a higher goal which he met, and then again and again until Tim Grittani net worth was $2.7 million dollars.

What Are Penny Stocks?

Penny stocks are stocks that trade for $5.00 or less and are “considered highly speculative and high risk because of their lack of liquidity, large bid-ask spread, small capitalization and limited flowing disclosure”, according to Investopedia.

As Timothy Sykes, Grittani’s teacher, says “This is a game, and you have to think of it like a game”. So trading penny stocks is something that can make you series money, but with it also has series risk.

Though it’s possible to make a lot of money with penny stocks the likelihood is low. Though that doesn’t mean there is nothing to learn from such a person.

Can We All Learn From A Penny Stock Trader?

Learning Tim Grittani net worth, and more importantly how he grew it to such a level, gives us three main things to take away.

First, Tim Grittani didn’t get to where he is over night. He learned, but rather then just learning and never doing anything he took action, setting goals for himself. Once each goal was set he set another, and another until a bad week was more profitable then 3 months would have been.

Second, don’t be afraid to lose it all. Tim Grittani lost his initial investment, but he didn’t let that stop him from growing his net worth to $2.7 million. Instead he learned from that mistake changed how he did things and made progress. Likewise we may lose everything, we may be working on a project and it falls out, or doesn’t work. We will lose time and money, but don’t let it cripple us, instead learn from it. Let your failure be the fire that helps you attain your ultimate goals.

Third, find something you’re semi good at, natural at, or just enjoy and become an expert. Tim Grittani wasn’t an expert at trading penny stocks when he started he had to become and expert. You can too, you may not be an expert at retail arbitrage, writing, or making money while you sleep. But you can become and expert, you can spend the time learning, practicing, failing and become that expert.

Tim Grittani net worth is much higher then most peoples, but we can reach the same or even higher. If we do all we can and become the expert in our chosen field.


How To Pick Stocks Like Benjamin Graham – The Enterprising Investor

In the previous post, we briefly mentioned two different types of investors – the defensive investor, and the enterprising investor. Then we defined who a defensive investor was, and looked at how to analyze stocks as a defensive investor.

Now we’ll look at the other perspective – analyzing stocks as an enterprising investor. What makes an enterprising investor different?

According to Graham, the enterprising investor is willing “to devote time and care to the selection of securities that are both sound and more attractive than the average.” In other words, this person is willing to put in the extra effort necessary to obtain a better than average return on investment. So if this describes you, what criteria do you use to analyze stocks for your portfolio?

Here are the six criteria that Graham suggests you follow:

Low Price/Earnings Ratio

The first criteria he suggests is a lower price/earnings ratio. As opposed to the defensive investor, who is advised to filter out stocks with a P/E ratio greater than 15, the enterprising investor is even more restricted. Only stocks with a P/E ratio of 9 or less are suitable.

Good Financial Condition

While the defensive investor looks for companies whose current assets are at least twice their current liabilities, the enterprising investor can be more flexible. Companies only need to have current assets that are one and a half times greater than their current liabilities to be sufficient for the enterprising investor.

Furthermore, the amount of debt is permitted to be within 110% of net current assets.

Earnings Stability

Again, Graham was more lenient in this area compared to the defensive investor. For the enterprising investor, he only required positive earnings over the previous five years.

Growth In Earnings

Graham didn’t require a specific percentage increase in earnings, as he did for the defensive investor. Rather, he only required that the company’s earnings from the previous year be more than its earnings figure five years ago.

Some Current Dividend

Graham was the most accommodating with this set of criteria. He didn’t insist on consistent dividend payments over a certain time period, but only expected some amount of current dividends.

Moderate Price

This was the only other criteria in which Graham placed more restrictions for the enterprising investor. To be a worthy company, the stock’s price needed to be less than 120% of the company’s tangible book value.

Closing Thoughts

Using this different set of criteria, enterprising investors would expand their list of suitable stocks for further analysis. However, Graham reminds us that to be successful, the enterprising investor must have enough knowledge of stock values to treat his operations as a business.

Finally, if you want to get at the heart of what Graham’s value investing perspective, consider reading a copy of his book The Intelligent Investor. The work was first published in 1949 and has been a must read for value investors since then. It sells for something like $12.00 on Amazon, so it is inexpensive considering its educational value.

Do you consider yourself an enterprising investor? What other criteria do you use to analyze stocks?

This post was included in the Carnival Of Money Stories  during the week of July 19, 2010. Check out The Financial Blogger’s blog for a variety of great articles!


How To Pick Stocks Like Benjamin Graham – The Defensive Investor

Although I’m not an advocate of picking individual stocks to make up the major part of an investing program, I do have a small amount of money invested in single stocks. With that said, the framework that I used – and continue to use today – to analyze the stocks was primarily influenced by Benjamin Graham’s bestseller, The Intelligent Investor.
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