[transcript]
Dangerous Don: Welcome back everybody! Welcome back to the MACHO INVESTING blog, home of the stock market millionaires! We're blogging direct from our worldwide corporate headquarters, right here in Scranton, Pennsylvania.
Johnny: . . . . . right here in Scranton. . . .
Dangerous Don: I’m your host, Dangerous Don, and this is your co-host, the dean of the Scranton financial gurus, Johnny Doorknob!
Johnny: . . . . . right here in Scranton. . . .
Dangerous Don: I’m your host, Dangerous Don, and this is your co-host, the dean of the Scranton financial gurus, Johnny Doorknob!
Johnny: Long story short, Don and me. . . . .
Dangerous Don: You folks probably recognize the name Dangerous Don. I happen to be one of the greatest stock market investors of all time.
Johnny: . . . . . . . never got out of Scranton. That says it all.
Dangerous Don: You folks probably recognize the name Dangerous Don. I happen to be one of the greatest stock market investors of all time.
Johnny: . . . . . . . never got out of Scranton. That says it all.
Dangerous Don: You know, Johnny, just as a little bit of local Scranton. . . . . before we get into the serious stuff. . . . . . why don't you tell the folks out there about that big tooth you’ve got. The one over your fireplace.
Johnny: The woolly mammoth tooth?
Dangerous Don: Yeah.
Johnny: Well. . . . . it’s a woolly mammoth tooth. Been in my family for something like 12,000 years.
Dangerous Don: Long time.
Johnny: Not for a tooth. That enamel stuff never rots. It’s the same as the day my folks killed the mammoth.
Dangerous Don: Where did they kill the mammoth?
Johnny: Best we can figure out, it was in what’s now the Ukraine. Which was big-time mammoth hunting territory back then. 12,000 years ago.
Dangerous Don: Your folks hunted woolly mammoths?
Johnny: That's basically all we did. Would have starved without mammoth meat.
Dangerous Don: Wow! Hunting mammoths! Must have been kinda like. . . . . investing, right? Gets you pumped up!
Johnny: Investing gets you pumped up? Not me. About as exciting as watching paint dry. Slow and Steady. That's my motto.
Dangerous Don: What a family! Hunting woolly mammoths!
Johnny: Investing gets you pumped up? Not me. About as exciting as watching paint dry. Slow and Steady. That's my motto.
Dangerous Don: What a family! Hunting woolly mammoths!
Johnny: Just trying to eat. Wasn’t like we were different from anybody else. Back then, everybody had to eat mammoth. All there was to eat. Bet your family did too.
Dangerous Don: Okay. . . . now for some serious stuff about investing. . . . .
Johnny: We were nothing special, hunting mammoths. Everybody else was doing the same thing.
Dangerous Don: . . . . . serious stuff about MACHO INVESTING.
Johnny: We were nothing special, hunting mammoths. Everybody else was doing the same thing.
Dangerous Don: . . . . . serious stuff about MACHO INVESTING.
Johnny: Which is what our blog audience came here for.
Dangerous Don: Right. So, Johnny, you just retired?
Johnny: Yes, sir. After 45 years.
Dangerous Don: Tell us about that. What was your retirement strategy? Invest in your 401(k)?
Johnny: Never had a 401(k). Nobody I worked for ever offered us 401(k)’s.
Dangerous Don: Interesting. So. . . . . . how come you know so much about 401(k)'s?
Johnny: Trying to help out my son. His company has the 401(k) from hell. High management fees. Lot of hidden fees. No index funds. No bond funds. Employer match is next to nothing, year after year. Just a death-trap. And a bonanza for Wall Street
Dangerous Don: So. . . . . lot of problems with 401(k)'s?
Johnny: Don't get me wrong. I'm not against 401(k)'s. I'm just against the ones that are rip-offs.
Dangerous Don: So. . . . back to what you did yourself. To get ready for your own retirement. You just invested your savings on your own?
Dangerous Don: Interesting. So. . . . . . how come you know so much about 401(k)'s?
Johnny: Trying to help out my son. His company has the 401(k) from hell. High management fees. Lot of hidden fees. No index funds. No bond funds. Employer match is next to nothing, year after year. Just a death-trap. And a bonanza for Wall Street
Dangerous Don: So. . . . . lot of problems with 401(k)'s?
Johnny: Don't get me wrong. I'm not against 401(k)'s. I'm just against the ones that are rip-offs.
Dangerous Don: So. . . . back to what you did yourself. To get ready for your own retirement. You just invested your savings on your own?
Johnny: Might call it that. Except calling it “investing” kind of overstates it a bit. I just saved up $6000 every year.
Dangerous Don: And you invested in. . . . . . . ?
Johnny: Bank CD's.
Dangerous Don: And you invested in. . . . . . . ?
Johnny: Bank CD's.
Dangerous Don: For 45 years?
Johnny: Right.
Dangerous Don: What kind of returns were you getting?
Johnny: I figured it out once. . . . over the whole 45 years. . . . . . interest on my CD's averaged about 4.8% a year. Of course, recently, it's been much less than that. But ten years ago, I was getting over 6%.
Dangerous Don: Only 4.8%! Unbelievable! I mean. . . . . what's the point? Where's the action in a lousy 4.8%?
Johnny: Action?
Dangerous Don: Johnny. . . . . with all due respect. . . . . you're missing the whole point of investing.
Johnny: Action?
Dangerous Don: Investing is about making money. But it's also about showing people what you're made of. You know. . . . . . bragging rights. In other words, you want to kick butt and take names.
Johnny: Show people what I'm made of? Come to think of it, mostly just common sense.
Dangerous Don: I’ve never invested in anything that didn’t guarantee at least a 20% return!
Johnny: Action?
Dangerous Don: Johnny. . . . . with all due respect. . . . . you're missing the whole point of investing.
Johnny: Action?
Dangerous Don: Investing is about making money. But it's also about showing people what you're made of. You know. . . . . . bragging rights. In other words, you want to kick butt and take names.
Johnny: Show people what I'm made of? Come to think of it, mostly just common sense.
Dangerous Don: I’ve never invested in anything that didn’t guarantee at least a 20% return!
Johnny: I’m lucky I didn’t know you back then.
Dangerous Don: Think of what you could have made, if you had invested at 20%.
Johnny: I know what I did make. That’s all that counts.
Dangerous Don: Are you okay with telling our audience how much you made? Like, total?
Johnny: Sure. No problem. I retired last month with over a million bucks in my savings account. Not bad for a plumber.
Dangerous Don: It's one heck of a big number. . . . but. . . . .
Johnny: That’s what you end up with, when you save up $6000 every year, for 45 years, at 4.8% interest.
Dangerous Don: But. . . . . Johnny. . . .
Johnny: Ended up with more than folks I know who's got a 401(k).
Dangerous Don: But. . . . . Johnny. . . .
Johnny: Even when they had employer matches.
Dangerous Don: But. . . . . Johnny. . . . .
Johnny: Problem is, they had too many stock market crashes.
Dangerous Don: It's one heck of a big number. . . . but. . . . .
Johnny: That’s what you end up with, when you save up $6000 every year, for 45 years, at 4.8% interest.
Dangerous Don: But. . . . . Johnny. . . .
Johnny: Ended up with more than folks I know who's got a 401(k).
Dangerous Don: But. . . . . Johnny. . . .
Johnny: Even when they had employer matches.
Dangerous Don: But. . . . . Johnny. . . . .
Johnny: Problem is, they had too many stock market crashes.
Dangerous Don: But. . . . Johnny. . . . if we had met earlier, and I had taught you how to do Macho Investing, that million bucks could have been ten, twenty, thirty million.
Johnny: No comment.
Dangerous Don: No regrets?
Johnny: Nope. You’re the guy I feel sorry for.
Tana Marie: Please feel a little sorry for me too. His day-trading costs us $4000 a year. That's money right out the door, in stock-market losses.
Dangerous Don: Moving right along. . . . folks, that was my lovely wife Tana Marie you just heard.
Johnny: Plenty of time to talk about all that day-trading stuff next time.
Dangerous Don: Right you are! Folks, we’ve run out of time! Hope you learned a lot!
Johnny: Forgive me, folks. I'm supposed to ask him this. Don, what's the motto of the MACHO INVESTING blog?
Dangerous Don: BE DANGEROUS!
Johnny: Meaning?
Dangerous Don: Risk equals reward. That's what all the finance books tell you. So, obviously, MORE RISK EQUALS MORE REWARD!
Johnny: Complete looney-tunes!
Dangerous Don: And it's a lot more fun when you're dangerous. Remember, bottom line, investing is just like bungee-jumping.
Tana Marie: Don't you ever dare talk about that bungee-jumping stuff! Never again!
Dangerous Don: So, folks. . . . . stay tuned to the MACHO INVESTING blog. Believe me. . . . you’re going to make a TON of money!
Johnny: Forgive me, folks. I'm supposed to ask him this. Don, what's the motto of the MACHO INVESTING blog?
Dangerous Don: BE DANGEROUS!
Johnny: Meaning?
Dangerous Don: Risk equals reward. That's what all the finance books tell you. So, obviously, MORE RISK EQUALS MORE REWARD!
Johnny: Complete looney-tunes!
Dangerous Don: And it's a lot more fun when you're dangerous. Remember, bottom line, investing is just like bungee-jumping.
Tana Marie: Don't you ever dare talk about that bungee-jumping stuff! Never again!
Dangerous Don: So, folks. . . . . stay tuned to the MACHO INVESTING blog. Believe me. . . . you’re going to make a TON of money!
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