"Dave" wrote in message
...
On Mon, 23 Jun 2008 22:48:54 -0400, "Wilbur Hubbard"
said:

Your very first priority
should always be staying financially solvent and having people paying YOU
interest on your investments. Neither a lender nor borrower be . .

And just how do you expect to earn interest without lending money?

How about buying bonds? How about buying half a dozen shares of Berkshire
Hathaway"

Wilbur Hubbard

"Dave" wrote in message
...
On Tue, 24 Jun 2008 11:23:53 -0400, "Wilbur Hubbard"
said:

Your very first priority
should always be staying financially solvent and having people paying YOU
interest on your investments. Neither a lender nor borrower be . .

How about buying bonds? How about buying half a dozen shares of Berkshire
Hathaway"

When you buy bonds, you're lending to the issuer of the bonds. When you
buy
Berkshire Hathaway you're getting dividends (and perhaps capital gains
when
you sell), not interest. You only earn interest by lending.

Semantics. You get a return on your investment. You don't lend; you purchase
a product that escalates in value if you're smart about. You are not
"lending" when you buy (notice the word buy!) bonds or by shares of stock.
Lending is to hand over money to a client and then expect to have it be paid
back over a period of time with interest.

Dummy!

Wilbur Hubbard

On Tue, 24 Jun 2008 13:12:11 -0400, "Wilbur Hubbard"
wrote:


"Dave" wrote in message
.. .
On Tue, 24 Jun 2008 11:23:53 -0400, "Wilbur Hubbard"
said:

Your very first priority
should always be staying financially solvent and having people paying YOU
interest on your investments. Neither a lender nor borrower be . .

How about buying bonds? How about buying half a dozen shares of Berkshire
Hathaway"

When you buy bonds, you're lending to the issuer of the bonds. When you
buy
Berkshire Hathaway you're getting dividends (and perhaps capital gains
when
you sell), not interest. You only earn interest by lending.

Semantics. You get a return on your investment. You don't lend; you purchase
a product that escalates in value if you're smart about. You are not
"lending" when you buy (notice the word buy!) bonds or by shares of stock.
Lending is to hand over money to a client and then expect to have it be paid
back over a period of time with interest.

I think the "borrower or lender" saw is meant to suggest "don't take
risk." Might be wrong. Bonds and stocks involve risk.
Gov guaranteed CD's, which money is lent out by the CD issuer,
presumably have no risk.
But hey, that was Polonius talking, and he was full of it anyway.
Or so sayeth scholars, averring that he spoke in what were cliches
even in the 15th century. We've come a long way, and some of our
cliches even farther.

--Vic

"Vic Smith" wrote in message
...
. Bonds and stocks involve risk.
Gov guaranteed CD's, which money is lent out by the CD issuer,
presumably have no risk.

Governments get around that one by allowing inflation to depreciate the
value of your investment.
Sure, you get your money back but it is not worth the same as when you put
it in.

On 2008-06-24 13:12:11 -0400, "Wilbur Hubbard"
said:

You are not "lending" when you buy (notice the word buy!) bonds or by
shares of stock. Lending is to hand over money to a client and then
expect to have it be paid back over a period of time with interest.

Bonds or CDs are simply giving money to an entity in receipt for a
*promise* from them to pay you that value plus a bit some time in the
future.

Whether you equate that giving to 'lending' or 'buying', all you have
in return is a promise. At most, it's a piece of paper with intrinsic
value of $0.000007.

The higher the risk of your not getting the full value back, the more
they promise to give you back.

TANSTAAFL!

--
Jere Lull
Xan-à-Deux -- Tanzer 28 #4 out of Tolchester, MD
Xan's pages: http://web.mac.com/jerelull/iWeb/Xan/
Our BVI trips & tips: http://homepage.mac.com/jerelull/BVI/

"Dave" wrote in message
...
On Tue, 24 Jun 2008 13:12:11 -0400, "Wilbur Hubbard"
said:

You are not
"lending" when you buy (notice the word buy!) bonds or by shares of stock.
Lending is to hand over money to a client and then expect to have it be
paid
back over a period of time with interest.

So you didn't get beyond high school, Wilbur?.

Ph.D.!

A bond holder is a creditor--someone who has lent money to the issuer, or
who bought the debt from the person who originally lent the money.

Wrong. When I buy a government treasury bond for a thousand dollars it is as
good as a 1000 dollar bill as far as being secure. But, unlike the 1000
dollar bill, which depreciates along with the inflation rate, it grows in
value at a guaranteed rate of increase. For 1000 dollars I BUY a piece of
paper that inceases in value and is guaranteed to do so. It is no different
than buying an ounce of gold except gold has a downside risk while the
treasury bond does not. I am not lending, I am buying. Case closed.

Wilbur Hubbard