OT_ OT _ OT MARGIN
After seeing the discussion on margin this afternoon just thought I would drop a few lines.
I am absolutely amazed how many seasoned investors live in fear of MARGIN. Margin is without a doubt the greatest wealth building tool an investor can use. The KEY is QUALITY, QUALITY, QUALITY! One of my first post on SI was the statement that an investor should only buy stocks that he or she would be happy seeing actually decline so they could pick up more. Yes, just like margin a seemingly negative turned into a positive.
Now let us take a closer look at another case of MARGIN that is for more dangerous, sometimes fatal and almost every swinging D--- does it without a second thought ( at least Stock Margin is regulated ) except Monsieur Voltaire, MARRIAGE, MARRAGE, MARRIAGE! Monsieur Voltaire put his money were his mouth was and insisted on that Holy Writ of Holy Writs - a damn Pre-Nupt.
Like I say, so many of these brilliant individuals who preach the insanity of going on margin, think nothing of engaging in a game with greater odds against it's success than in some cases, a multi-million dollar bet on Black or Red on a Roulette table in Vegas. In a fit of lust and after having spent the better part of a few months thinking with their appendage, they marry some Split Tail, plop down $60,000 on a 30 yr. $600,000 Mortgage ( MARGIN, MARGIN, MARGIN ) with a total pay out of $1.8 million and payments of $5,000 per mo. for the next 30 yrs.
They rock along with this little Love Locked investment for a few years and in the mean time have picked up a few more shares of MARGIN called kids, hell this is worse than MARGIN, these little devils are like walking screaming PUTS and CALLS for God's sake because we have no idea how these little investments are going to turn out! But so much for risk, I mean hell, our little investors are as happy as a Pig in slop, I mean after-all he has everything the American Male could hope for. He has food in his belly, sex when the Split Tail decides she needs to throw in a little for security sake, and above all he has control of the most coveted item of any American Male Margin Runner, the Damn T.V. Remote. So this investor with a disdain for MARGIN is sailing along with this fantastic INVESTMENT when Mr. Statistic sticks it's ugly head out of the damn sand and all of a sudden this Beautiful, Kind, Loving, Child Bearing, stick with you for life Split Tail gives you the one thing you as a SMART NEVER GO ON MARGIN INVESTOR has always preached against, A God D--- MARGIN CALL, --DIVORCE, DIVORCE, DIVORCE!
So let us look at that NO MARGIN investment this brilliant investor made a few years ago.
1. That $600,000 home - GONE! - but unlike MARGIN you have to keep on making payments to that Lovely Split Tail.
( Margin Call - just sell the stock or write some Calls and stay n the game).
2. remember the Puts and Calls you decided to play called KIDS. ( yes, I know, we love them but without a doubt KIDS WILL GIVE YOU THE WORST RETURN ON ANY INVESTMENT KNOWN TO MAN ) Yep, get to see how these little liabilities are doing when some Judge dictates, but you'll fork over the dough for life to the tune of about $1 million per until they become unidentifiable LEAPS, or worse yet, Leaps in a Bear Market.
Now here is the WORSE PART - because in my humble opinion most Men are weak and Women on a bell curve are desperate, the poor bastard will turn around and do it again!
Anybody know of any of these NO - MARGIN players?
I do, and not only that, my son went on Margin March 15 of 1998.
From the porch just reading my pre-nupt,
Selah,
Voltaire
P. S. - I think the happiest people in the world are people who are happily married. It is just that the odds are better using Stock Margin! |
