Mailbag: How Not to Avoid Losing Money in Stocks

|January 9, 2020

This news comes with perfect timing.

Not only could the idea it unlocks make a man rich… but it could keep him out of financial ruin.

Just yesterday we penned an essay about the vital virtue of having an investment strategy. Do something, we said… anything… just stick to a plan.

Don’t, in other words, invest solely on whims and rumors.

At the same time our column hit your inbox, shares of Boeing (BA) were falling. Another one of its planes had crashed, sadly snuffing out every soul on board. It’s news that nobody wanted to hear.

But there’s a group of investors who are panicking because of the news.

They just bought shares of the airline… for a very dumb reason.

They bought just hours before the crash because of rumors that Warren Buffett was interested in a stake in the airline.

There’s no official word from the Oracle, no press release, nothing. And our own gauge of money flow shows that sellers still far outweigh buyers.

And yet folks put their money and their savings into the airline… all because of a rumor on the Wild Wild Web.

That’s silly.

That’s not a strategy. That’s not investing… and they’re paying for it.

Don’t Gamble

That’s the idea that takes us to our mailbag and to an important reader comment.

You said zero gambling but putting money in the stock market IS A Gamble no matter how you look at it. Thanks for the article. I agree with You! – Reader R.H.


And NO again.

The reader is referring to Joel Salatin’s essay last week about the way folks spend their money. You can reread it here. It was quite good.

Yes, gambling is trouble. We don’t do it.

But investing in the stock market? We best not knock such a splendiferous gift as a sin.

Think about it…

With a small outlay, we can own a brick in the greatest economic fortress this planet has ever known.

With a single trade (which can now be done for free), we can own a stake in the most valuable company in history.

We can own a stake in a company on the cusp of crushing cancer. We can become owners in a company shooting rockets to the moon.

That’s hardly the same as blowing on a pair of dice and wishing for a set of sevens.

The only time the two are comparable, as we’ve aptly shown, is when you don’t follow a strategy.

When you follow the rumors into Boeing… that’s gambling. When you have a hunch a stock is going to rise… that’s gambling. But when you do your homework and know that the mechanical forces of the economy and the market are in your favor… that’s not gambling.

It’s making a brighter tomorrow. It’s creating our greatest asset… Liberty.


With all that’s happening in the world these days, Liberty is a theme that seems to be silently woven through the national narrative.

What it takes to remain free is certainly on the minds of our readers…

Thank you and your team for all you do. I have written you a few times with thoughts generated by your daily missives. Your “passion project” couldn’t have come at a better time for me. I have shared your thoughts with others and have encouraged them to join.

The reason I am writing these random thoughts is out of concern and frustration.

It seems to me that over the last number of years, a growing number of people in this country are getting complacent about their responsibilities as a citizen of this great country. Being a member/citizen does have some responsibilities and it seems like people either don’t want or aren’t able to realize that they need to be involved.

In my business, I have a rule for dealing with issues that come up. Whatever the issue is, just don’t bring it up and expect someone to come up with the solution or fix it. Bring at least two potential solutions along with the issue. Our Country has a number of issues, however, I have NO DOUBT that they could be fixed if WE came together for the common good. You might not get everything you want, however, it would make for a better environment for all. Keep up the good work! Reader S.E.

Thanks, S.E.

Keep talking like that and you just might make our list of potential vice presidential candidates. Clearly, it’s an unelectable idea… perfect for our campaign. (By the way, we got our first official campaign donation this week. We found a dollar on the street!)

This note ties quite well to the third piece of our Triad… Connections.

We’re all tied together somehow. We can let our thoughts and ideas divide us. Or we can grow a spine and understand, as was written so long ago, that iron sharpens iron.

It’s not a popular way to think. And it’s not an easy way to think.

But it’s the right way.

Dumb Kids

Did you hear about the draft and how college kids are worried the mess in Iran will get it reinstated? It seems kids these days want the government to hand them everything, but when Uncle Sam comes knocking they hide behind the door. – Reader A.M.

We heard about it. It doesn’t surprise us one bit.

We reckon if the modern collegiate class were put in charge, they’d force billionaires to not only don fatigues and fight our wars but pay for them, too.

And when the bad guys show up on our shores, these kids will wonder who’s to blame.

But here’s the thing. There’s no threat of a draft.

America’s military is the strongest in the world… and it’s 100% volunteer.

It proves that despite the growing mass of folks who don’t get it, plenty still see the unmeasurable value of Liberty.

One more… totally unrelated.

After reading the recipe for the “Perfect Drink,” I see I am making enough for 2 quarts. How much of this am I drinking each day. One glass or am I drinking the entire amount every day? – Reader M.R.

Good question, M.R. All it takes is just one 8-ounce glass each day. We prefer a glass with breakfast, but any time of the day will get the job done.

It’s a question we get a lot. We’ll update the book in the next round.

For now, if you’re interested in the recipe or want to learn the crazy way we uncovered what we’ve dubbed the “Perfect Drink”… click here.

Keep the questions and comments coming. Email us at