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The Two Cents Worth

March 11, 2013

Drama. We think that 2¢ per $1 or 2% is way too much to pay for “investment advice” and “placement”. We think that advice and placement should be free – and, even more, we deserve a “Thank You, Sir or Madam, Thank you very much, for giving us the opportunity to invest your savings in our products” – AND we think that the capital – our savings – so “invested” should be guaranteed as 100% safe – 100% Capital Safety – no matter what the “markets” are allegedly doing. Is that practical? Is that “fair” to the legions of college graduates who are on the telephone, Twitter™ and Facebook™ every day, all day, trying to “help us” to grow our capital, ensure our income, and “diversify” our investments over bonds, equities, mutual funds, hedge funds, emerging markets, precious metals, reverse mortgages, IPOs, ETFs, et cetera, and most of which cost more than 2¢ on the $1 before we even get a penny back? Well, we know that it is practical and we know that it’s fair and those two assertions – that it’s practical and fair at any level of discourse, including the corporate level of the banks, insurance companies, and mutual funds that market and sell these products and accumulate the savings of millions of “investors” – are often a sub-text of what we do in these Posts.

We’re animated by the “2% Rule” because 2% per year amounts to 6% in three years and wipes out at least one year’s worth of capital gains in the rare consumer investment product that manages to gain 6% per year for three years in a row. It’s also the case that caveat emptor (“buyer beware”) is always in the sub-text of these investment products and doesn’t become the “large print” until we need our money or want to retire. And even if we as “small” investors in the $1,000’s or $10,000’s don’t have access to brokers, underwriters, investment bankers, accountants and lawyers, or don’t know what to buy and when, because that’s not our business, they do and it is their business and they have been entrusted with $100’s of millions of our money in their care, and, in our view, guaranteed capital safety and a hopeful but not necessarily guaranteed return above the rate of inflation, is the only benchmark of professional investment management. Guarantee it or stand down, we say.


We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond™
“Alpha-smart with 100% Capital Safety and 100% Liquidity”
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to


Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.

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