Stock of The Day: Netflix Continues to Innovate (NFLX)

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Stock of the Day

Netflix continues to innovate.

In a very competitive environment, they continue to raise the bar in the film and online TV space. Faced with rising content cost the company began to experiment with creating it own content and it is paying off handsomely. Shows like House of Cards and Orange is the New Black have been come cult classics.

They just announced that they will make Crouching Tiger, Hidden Dragon 2, available on their platform on the same day as its released in the movie theaters. This is the first time this has been turn.

Also they just announced they partner with Adam Sandler to create 4 feature films.

Netflix continues to break new ground.

Its stock price is following suit- with it closing out yesterday at $438.80. Year to Date the stock has produced a 19% + return.
That’s very impressive, since the broader stock market is only up 5.21%

It will be pretty exciting to see what other scripts the company has up in the clouds.

5 Things Football Can Teach You about Investing

www.askcamari.com

Football season is kicking off in just a few days.

Football fans everywhere are starting to shake off the glazed-over feeling of football withdrawal syndrome that they have been suffering with since the SuperBowl. Since the winter football fanatics have been a bit antsy. The season is starting now, so all is right with the world again.

Lewis Grizzard said, The game of life is a lot like football. You have to tackle your problems, block your fears, and score your points when you get the opportunity.

Investing is just like football. Many of the lessons learned on the field can be easily applied to the world of investing.

Below you will discover 5 things practiced in football that can be applied to your investment portfolio to make your life a little easier

 

1.) Team Building is Job # 1

Every football team is a collection or portfolio of players. Just like every stock portfolio is a collection of various stocks. In Football, each team has three sub groups – Offense, Defense and Special Teams. Each on of these groups has a particular purpose. Offense’s job is to score. Defense’s job is to keep the opposing team from scoring and Special teams is for special situations like punting and kicking field goals. Your portfolio is just like a football team – Your offensive positions are there to make you money, with investment like stocks. The Defensive squad is their to protect your money with investments like bonds. The Special Teams unit, is there for special situation, like war or natural disasters, which work well for investments like gold and oil.

Every team is special. Some teams are more offensive, others are more defensive, no team is alike. Every investor’s portfolio is special also, it should be unique and built specifically with a purpose in mind, like retirement, or college.

2.) Ignore the Draft

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Every year, the NFL holds a Draft to pick the top talent from the college football ranks. Its a media frenzy. This event is very similar to an Initial Public Offering in the world of investing. Just like football everybody wants to know who the new Hot Player is, the IPO signifies what the new hot stock will be. Sadly many of the NFL best players did not come from #1 draft picks., Joe Montana, and Tom Brady, were drafted during the 4th and 6th rounds of the draft, respectively. They were along way from that “Top Draft Pick” position, but they are arguably the the best Quarterbacks to ever play the game. The same thing happens in the world of investing, its those non thought of investments that sneak up on you to produce major returns.

Have you ever heard of Lee Enterprises(LEE)? Well Warren Buffett has. His company Berkshire Hathaway owns about $360,000 and it has returned 106% over the last 5 years. Compared to the 94.7% returned by the overall stock market, measured by the S&P 500. That is like winning the Superbowl.

Quiet is always better then loads of attention, for investors.

 

playbook_askcamari3.) Football is a Mental Game

Football is football and talent is talent. But the mindset of your team makes all the difference – Robert Griffin III

Football is athletic in nature, but it takes brain power to win the Superbowl. There are many highs and lows in football, just like in investing. The true champions of football and investing are the ones who know how to keep their emotions in check and follow a repeatable logical process.  

4.) Having a Playbook

Some of the greatest football players and coaches are notorious for studying previous game and practice film footage. Masterful investors do something very similar by studying previous stock market movements.  Its not uncommon, for the great investors to review the stock market crash of 1929 or Black Monday in 1987 or the October 2008 crash, during the great recession.

Studying the past helps you see opportunity in the future. Whether its adjusting your defense to stop a team that can run the ball up the middle at will,  or how to rearrange your investments to  deal with the threat of war – All of these strategies should be present in your play book.

 

5.) No Position is GuaranteedYellow Post-it note with You're Fired message.

There are no guaranteed positions in football. Every season, all the players must compete for their respective position on the team. If a player is hurt, or just not up to par they will be replaced with another player who is more likely to fulfill the roles and responsibilities of that position.

The same rule holds true in investing. If a company is damaged by lacking profits or there are other investments that fulfill that role in your portfolio better than the current investment they must be cut or traded. There is an old investment saying  “Never fall in love with your positions”. Once you fall in love, you lose your objectivity.

If you follow these 5 footballs lessons, you should be able to make more money with your investments then you have made on you fantasy football pool.

Tell us, who you are expecting to see win the Superbowl this year.  

Major Cash Winfalls (5 Ways to Keep them from Breaking You)

5 Ways to Handle Cash Winfalls.

You hit the jackpot, now what?

What’s the jackpot –  winning lottery ticket,  bonus from your employer, an inheritance,  legal settlement or any large lump sum of money that you may receive, unexpectedly.

You brought your $2 Powerball ticket and it hit. You are the number 1 pick in the NFL Draft. Your Great Aunt passes away andnfldraft left you millions. You got a major promotion and a huge bonus at your job. You sold your business for a nice 8 figure sum. Your lawsuit finally settled.

Your pot of gold has just arrived! Do you know what to do next?

The Media is full of stories about about massive powerball lottery winners, CEO bonuses and athletes getting colossal payouts. Often times they blow it, especially the lottery winners along with the athlete and entertainers.

Not sure about you, but I am really tired of hearing about lottery winners and athletes that are broke just 5 to 10 yrs after receiving sums of money that could feed an entire African nation for a year or more. These payouts could have lasted a lifetime or more, if they would have done a little planning.

So if you think I am going to talk about “making it rain” in the club, or giving a way Bentleys, you are correct. However, we will examine, what other alternatives approaches could be taken.

Planning

First things first,  take an assessment of everything you own and owe.Planning

Do you have a mortgage?

Credit Cards?

401k?

Life Insurance?

Savings?

Car Note?

Student Loans?

Does your momma have a mortgage?

Does your father have savings?

Will your little sister need braces?

Etc Etc…

All of your assets and liabilities need to be figured out. I suggest you do this, yourself at the beginning of the process, so you can have a sense of ownership in this process. Far too often, people delegate their money tasks,  that should be handled by them and only them, like check writing.

visionVision

Then take the time to think about what is actually important to you. Dream a little. Do you want to go back to school? Start a business? Travel the world?  Ultimately, money cannot buy you happiness, only clarity can do that. Do you love what you are currently doing? You may have to make a career switch in the very near future. Athletes are always at risk of getting injured, so you have to consider that.

Dream Team

Assemble your “dream team”- accountant, lawyer, financial Advisor – they will be your core team. This is just the beginning, you

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 will probably need specialists, like an estate planning attorney. You want to work with people you know, like and trust.

 Understanding how they are compensated is critical. There are way too many lawsuits that entertainers have filed against former advisors, that could have avoided on the front end, if they would have understood their role and their compensation. Again, never let anyone have free reign over your finances, by signing your checks or making payments for you. It is understandable to give a person access to an account with a limited amount of funds, for expediency, but never all of it. Also get regular reports on disbursements and income. Remember familiarity breeds contempt, so think like a boxer and protect yourself at all times.

 

Taxes and …… Estate taxes…

I can’t stress this enough!! Big Brother is watching and Uncle Sam wants his CUT!! Period! Many a fortune are reduced due to paying to much in taxes. As your income increase, so does your tax bill. Be ruthless in this area, but never illegal. Understand what you get taxed on and where you can take deductions. Plan this well in advance. You can never, plan too much for taxes. You don’t have to be an expert, but you should have a working knowledge.

Know that Uncle Sam wants his cut from you while you are dead or alive. You are truly on the “most wanted list”. Estate tax is brutal, so if you are concerned about creating generational wealth, you need to plan for this well in advance of your demise.

 

New Family

Expect a visit from your long lost cousin Jed. Yup, your long lost cousins will be calling you pretty soon. So know what you are going to do, when this situation arises. New found riches can be both a blessing and a curse. this is when you see who really has your best interest at heart. When you find your pot of gold you have to know what you will do with family, because there will be some that you want to help, think about how many people brought mamma a new home, but know that if you help too many people like MC Hammer it could land you in the poor house.

Don’t stress and relax!

At the end of the day, you have “The American Dream”.
So breathe easy!