Well, ain’t this just a pickle?  Here we are ahead of the Easter holiday weekend and people are still not focused (mainly) on personally useful news.  Instead they are focused on complete time-wasters like, oh, how the return of Roseanne is going to somehow matter either in the future of Hollywood, or the conduct of your life.  (Although Trump personally called Roseanne to congratulate her on ratings…”)

That this planet is totally fox-uniform‘ed ought to be obvious to any sane person.  But, maybe there’s just the two of us…

While we long-ago called out the nearly-fraudulent (bait, switch, and bill) business models of Social Media players – many of which are now in full melt-down mode [so sorry, lol], the fact is likely to remain that living by a variant of what we in the National Bank of Dad loan offer call the Warren Buffett lifestyle will continue to make sense…forever. Or, till we croak.

(Continues below)


The “Buffett lifestyle?” you’re thinking?  Never heard of it?

That could be due to an inability of most people to “template” positive behavior and, lacking that, they just do as they’re told by media, which offers more control over young people than the nuclear family used to.  (Which is the why of school shootings, but since it doesn’t take-down American, the point is deliberately missed.)

The Buffett lifestyle is a simple-enough one:  Don’t get too uppity, stay married, and above all?  Invest in quality companies making goods.

Give yourself a hard look every morning”  “If I were a company, would I invest in me?”  You can change that every day…but how many do?

Listen:  I don’t eat Blizzards, but I have had some very good burgers at Dairy Queen.  I totally understood that Berkshire acquisition back when.

And that’s the template, you see?  Only spend your hard-earned money on quality goods and avoid debt.

Do you have any idea how much cash Berkshire has on hand?  Look it up over here…stock symbol is BRK-A.  $106.8 Billion.

Trailing 12-month revenue was?  $239.8 billion.

Here’s how the Buffett ratio translates into a personal lifestyle.

Take how much money you made in the past year (you have a little over 2-weeks to get your taxes done, so this ought to be a “top of mind” number).

Now run the Berkshire/Buffett/Munger “cash on-hand ratio.”

Too lazy?  (That’s the trouble with America!!! Too lazy, not thinking, not learning…oh, don’t get me started!)

Cash is 44.5% (rounding) of trailing twelve month (TTM) revenue.

Which means what?

If you manage your life to the same of accounting ratios as Buffett and Munger run Berkshire (BRK-A), you would to have 44.5% of your last year’s pretax income in the bank.

I’ve always held that Elaine would be able to live very nicely and stress-free on $100K per year, so that’s the number I manage to.  Which means we should have 44.5% of that in ready cash to live the Buffett lifestyle ratio.

And you know what?  As of this morning, the Ure’s bank reports ready cash is actually $41,155.99.  For me, that’s close enough.  Your “Personal M1 number.”

But seriously?  Why are people in America poorer than they should be?

Because they go out and run-up stupid bills.  Vacation all the time.  Don’t sacrifice now for later gains…OMG the list is endless.

Take credit cards, just as an example:  Know what our Buffett-lifestyle total credit card debt is as of this morning?

-$19.68.  Yeah they owe us $19-bucks, but it will be dead-even zero when the next Amazon purchase posts.  See the point?

One of my children was wondering the other day “Can you lend me $400 bucks for this class I want to take?”

“No.  Tell me how along before the class pays for itself?”  (The answer was imprecise.)  “How much do you have in the bank?”  (mumbling followed)

I pleaded poor, which is sort-of true because we should have another $4-large in checking to hit my perfect “Buffett ratio.”

The lesson for the young one (and you) is simple:  Have ready money first.

Let’s say this young Ure spawn makes $43,000 a year.  Hypothetically, of course. The Buffett cash ratio on that would be what?

$19,135 in checking or liquid “ready cash.”

The point I’m making is that everyone gets to manage their own financial lives.  Maybe if you are young (and your income could grow more quickly than when you gray and become (effectively) unemployable, you can model a different company as your ideal.

As you cross the 70-line (I’m staring at it soon), a conservative approach makes sense.  At age 20?  Ready money still matters, but you can work half a century to get ahead.  At our ages, no one would hire use…well, Elaine, sure but me?

Consider finding a good company – one you like and use – and “borrowing their ratios” to run your life.

Let’s look at Amazon:  Trailing 12 month Revenue?  $177.87 billion.

Cash on hand? $30.99 billion.

The Bezos ratio?  17.42%

Even in this case the (our hypothetical loan client online with the National Bank of Dad) should still have $7,491 in the bank.  That’s ready money, waiting for opportunities to wander by…

There are lots of templates to choose from.  A kind of “middle ground” between the ultra low-leverage Buffett lifestyle and the Bezos lifestyle might be Caterpillar.  Good imagery if you are a visualizer and “bulldozing your way to success.”

Trailing 12 Months revenue?  $45.46 billion.  Cash?  $7.38 billion. 16.23%.

The National Bank of Dad  loan department says the customer needs $6,978 in cash/checking/demand savings.

Yes, this is a very strange way to run your life.

But every minute you spend reading the philosophies of how successful people make – and keep money – is time very well invested.

On the other hand, if you are, like so many Americans, average in your thinking, the average amount of time you’ll spend on what may be a three-day weekend, actually studying this stuff, is typically zero.

And that, dear reader, is why China’s kicking our ass.  This is not a world where winners are stupid, or being an American guarantees success.

There’s this stuff called work, study, learn, excel. Well, at least there used to be.

Now, where were we?  Oh, yeah, talking about

Personal Incomes

Which are just out from the Bureau of Economic Analysis:

Personal income increased $67.3 billion (0.4 percent) in February according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $53.9 billion (0.4 percent) and personal consumption expenditures (PCE) increased $27.7 billion (0.2 percent).

Real DPI increased 0.2 percent in February and Real PCE increased less than 0.1 percent. The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.2 percent.

And the part that matters most to this morning’s rant?

“Personal outlays increased $27.8 billion in February (table 3). Personal saving was $497.4 billion in February and
the personal saving rate, personal saving as a percentage of disposable personal income, was 3.4 percent.”

Note to the National Bank of Dad customers:  If you make $43,000 a year (hypothetically) plan on saving $1,462 per year.

Assorted News

Such as it is:

Trump escalates attack on Amazon, slams it on taxes, shipping.  This have everything to do with Trump being the Real Estate President who understands how critical malls are to life insurance companies and various Emirates to park money in.

Our defining Peoplenomics piece on this was “Bezos and Bentonville: Barbarians at the Mall” – find in the Master Index to Peoplenomics.com which is our grown-up thinking site.


Malaysian central bank says foiled attempted cyber-heist.  tuning up for more Bitcoin attacks, we wonder?

Why is Time sending out an RSAS feed of Ask Dr. Ruth: How Can I Orgasm More Easily During Sex?  Implosion of the media example du jour.

Housing may be chilling – and here’s another story that goes to our notion that things are going to (Elliott wave bounce from 2009 complete, it’s time to decline now…): RealPage® Reports Cooling in the U.S. Apartment Market Performance During the First Quarter’s Slow Leasing Period.

Dow futures at +86, so moron the ‘morrow…

No mail – no bills tomorrow which has to make it a Good Friday and this, therefore is Maundy Thursday, not to be confused with Monday-Thursday….oh where’s the coffee?

Didn’t Maundy play opposite Mork?