San Francisco Chronicle Article
Check out my article on March Madness MVP’s – Where Are They Now? It can be found at the San Francisco Chronicle’s website.
Archive for March, 2010
March Share Purchases
I added to my positions in Chicago Bridge & Iron (CBI) and Brookfield Infrastructure Partners (BIP) on Friday. Both stocks are small caps that appear to be trading pretty cheaply. The 6.5% dividend for BIP is very attractive and the long term growth prospects for CB&I are appealing.
The First Million Is The Hardest To Make
Why does the 1st million seem so difficult to make? It’s the principle of compound interest that makes the 1st million the hardest million that you will ever earn. Here’s are a few examples.
If you started with $100,000 and would like it to grow to $1,000,000 than you would need a 900% return on your money. ($100,000 + $900,00) = $1,000,000
If you started with $10,000 and would like it to grow to $1,000,000 than you would need a 9,900% return on your money. ($10,000 + $990,000) = $1,000,000
If you started with $1,000 and would like it to grow to $1,000,000 than you would need a 99,900% return on your money. ($1,000 + $999,000) = $1,000,000
If you started with $100 and would like it to grow to $1,000,000 than you would need a 999,900% return on your money. ($100 + $999,900) = $1,000,000
As you can see it takes astronomical returns on your money to make $100, $1,000, $10,000 and $100,000 grow to a million dollars. Suppose that you already had $1,000,000 dollars and would like to turn it into $2,000,000 dollars. What type of return would you need to achieve that?
($1,000,000 x 100% = $1,000,000) You would need a 100 percent return in order to turn $1,000,000 into $2,000,000 dollars. A 100% return seems paltry compared to the returns listed above. So, what does all of this illustrate? This explains why it is easier for a millionaire to become a multimillionaire than for an individual with a few thousand dollars to become a millionaire. Remember it’s not impossible to become a millionaire just remember 2 simple rules.
1. You need to continually increase the amount that you are investing. The greater the amount that you are willing to invest can help lower the return needed to achieve your goals. Saving more money today means that you don’t have to chase high returns tomorrow. It’s better to be in a position where you can accept a 10% return on your money rather than chasing a 1,000% return.
2. You need to give yourself ample time to reach your financial goal. The principle of compound interest works best for you over longer time periods. All things being equal an individual that invests for 20 years has the potential for a greater return than someone who invests for 5 years.
Photo by: Simon Davison
My Investopedia Post Made Yahoo’s Homepage
My Investopedia post made Yahoo’s Homepage! Seven Costly Pro Athlete Screw Ups
A New Number 1
1. There is a new richest man in the world. Ladies and Gentleman meet Carlos Slim Helu. The Mexican telecom mogul knocked Bill Gates off as the world’s wealthiest man with a net worth of $53.5 billion dollars. 80% of his net worth lies in 5 Mexican telecom stocks. His net worth jumped $18.5 billion last year vaulting him from third to first place.
2. Bill Gates finished at number 2 with a net worth of $53 billion dollars. Gates would no doubt still be the richest man in the world if he had not retired from his daily duties at Microsoft in 2008. Only $500,000 separates Gates and Slim. His net worth increased $13 billion dollars over the past year.
3. Warren Buffett, for whom Buy Like Buffett is named, came in at number 3 with a net worth of $47 billion dollars. Buffett’s net worth grew $12 billion dollars in 2009. I wouldn’t feel too bad for Buffett. I am sure he isn’t losing too much sleep over just being the 3rd richest man in the world.
Financial Advisory
Check out my first market update post for Financial Advisory. The link can be found below.
Chicago Bridge & Iron Is Building A Promising Future
Chicago Bridge & Iron (CBI) has had a 22% rise since I first recommended buying the stock in December of 2009. The company recently reported results for the full year 2009. For 2009 total revenue was $4.6 billion dollars. Net income came in at $174.3 million dollars and earnings per share was $1.79. Chicago Bridge & Iron picked up over $3.4 billion in contracts in the fourth quarter and $6.1 billion dollars in new contracts for the full year. According to CEO Phillip Asherman, CB&I has over $300 million in cash and a backlog of $7.2 billion in orders.
The stock still looks like it has upside. The balance sheet is solid and shares still look cheap selling at just 13 times this years earnings. CB&I is selling at a .41 price to sales ratio. To be fair Chicago Bridge & Iron’s price to book ratio is definitely not cheap with a value of 2.7. Management appears to be doing a solid job managing a 24.4% return on equity for 2009. The company tempered investor expectations for 2010 by guiding earnings downward. Any upside surprise in earnings for the current year and shares should rise. The real earnings story for CB&I is in 2011 when the average EPS is $2.15 meaning that the stock is trading at just over 10 times next years earnings. I have been long Chicago Bridge & Iron since last year and will continue to buy shares as long as the stock stays south of $24.
Photo by laffy4k
Highest Rates on A Savings Account
Here is a list of the highest interest rates on a savings account for the month of March.
|
1. SmartyPig 2.01% |
|
2. Bank of Internet 1.50% |
|
3. Capital One 1.45% |
|
4. Discover Bank 1.35% |
|
5. Colorado F.S.B. 1.35% |
|
6. Ally Bank 1.30% |
|
7. American Express Bank 1.30% |
|
8. Dollar Savings Direct 1.30% |
|
9. WTDirect 1.26% |
|
10. Everbank 1.26% |
List Of Bank Failures
Complete List of All 219 Bank Failures Since 2000
|
Bank Name |
City |
State |
Closed |
|
Centennial Bank |
Ogden |
UT |
5-Mar-10 |
|
Waterford Bank |
Germantown |
MD |
5-Mar-10 |
|
Bank of Illinois |
Normal |
IL |
5-Mar-10 |
|
Sun American Bank |
Boca Raton |
FL |
5-Mar-10 |
|
Rainer Pacific Bank |
Tacoma |
WA |
26-Feb-10 |
|
Carson River Community Bank |
Carson City |
NV |
26-Feb-10 |
|
La Jolla Bank |
La Jolla |
CA |
19-Feb-10 |
|
George Washington Savings Bank |
Orland Park |
IL |
19-Feb-10 |
|
The La Coste National Bank |
La Coste |
TX |
19-Feb-10 |
|
Marco Community Bank |
Marco Island |
FL |
19-Feb-10 |
|
1st American State Bank of Minnesota |
Hancock |
MN |
5-Feb-10 |
|
American Marine Bank |
Bainbridge |
WA |
29-Jan-10 |
|
First Regional Bank |
Los Angeles |
CA |
29-Jan-10 |
|
Community Bank and Trust |
Cornelia |
GA |
29-Jan-10 |
|
Marshall Bank, N.A. |
Hallock |
MN |
29-Jan-10 |
|
Florida Community Bank |
Immokalee |
FL |
29-Jan-10 |
|
First National Bank of Georgia |
Carrollton |
GA |
29-Jan-10 |
|
Columbia River Bank |
The Dallas |
OR |
22-Jan-10 |
|
Evergreen Bank |
Seattle |
WA |
22-Jan-10 |
|
Charter Bank |
Sante Fe |
NM |
22-Jan-10 |
|
Bank of Leeton |
Leeton |
MO |
22-Jan-10 |
|
Premier American Bank |
Miami |
FL |
22-Jan-10 |
|
Barnes Banking Company |
Kaysville |
UT |
15-Jan-10 |
|
St. Stephen State Bank |
St. Stephen |
MN |
15-Jan-10 |
|
Town Community Bank & Trust |
Antioch |
IL |
15-Jan-10 |
|
Horizon Bank |
Bellingham |
WA |
8-Jan-10 |
|
First Federal Bank of California, F.S.B. |
Santa Monica |
CA |
18-Dec-09 |
|
Imperial Capital Bank |
La Jolla |
CA |
18-Dec-09 |
|
Independent Bankers’ Bank |
Springfield |
IL |
18-Dec-09 |
|
New South Federal Savings Bank |
Irondale |
AL |
18-Dec-09 |
|
Citizens State Bank |
New Baltimore |
MI |
18-Dec-09 |
|
Peoples First Community Bank |
Panama City |
FL |
18-Dec-09 |
|
RockBridge Commercial Bank |
Atlanta |
GA |
18-Dec-09 |
|
SolutionsBank |
Overland Park |
KS |
11-Dec-09 |
|
Valley Capital Bank, N.A. |
Mesa |
AZ |
11-Dec-09 |
|
Republic Federal Bank, N.A. |
Miami |
FL |
11-Dec-09 |
|
Greater Atlantic Bank |
Reston |
VA |
4-Dec-09 |
|
Benchmark Bank |
Aurora |
IL |
4-Dec-09 |
|
AmTrust Bank |
Cleveland |
OH |
4-Dec-09 |
|
The Tattnall Bank |
Reidsville |
GA |
4-Dec-09 |
|
First Security National Bank |
Norcross |
GA |
4-Dec-09 |
|
The Buckhead Community Bank |
Atlanta |
GA |
4-Dec-09 |
|
Commerce Bank of Southwest Florida |
Fort Myers |
FL |
20-Nov-09 |
|
Pacific Coast National Bank |
San Clemente |
CA |
13-Nov-09 |
|
Orion Bank |
Naples |
FL |
13-Nov-09 |
|
Century Bank, F.S.B. |
Sarasota |
FL |
13-Nov-09 |
|
United Commercial Bank |
San Francisco |
CA |
6-Nov-09 |
|
Gateway Bank of St. Louis |
St. Louis |
MO |
6-Nov-09 |
|
Prosperan Bank |
Oakdale |
MN |
6-Nov-09 |
|
Home Federal Savings Bank |
Detroit |
MI |
6-Nov-09 |
|
United Security Bank |
Sparta |
GA |
6-Nov-09 |
|
North Houston Bank |
Houston |
TX |
30-Oct-09 |
|
Madisonville State Bank |
Madisonville |
TX |
30-Oct-09 |
|
Citizens National Bank |
Teague |
TX |
30-Oct-09 |
|
Park National Bank |
Chicago |
IL |
30-Oct-09 |
|
Pacific National Bank |
San Francisco |
CA |
30-Oct-09 |
|
California National Bank |
Los Angeles |
CA |
30-Oct-09 |
|
San Diego National Bank |
San Diego |
CA |
30-Oct-09 |
|
Community Bank of Lemont |
Lemont |
IL |
30-Oct-09 |
|
Bank USA, N.A. |
Phoenix |
AZ |
30-Oct-09 |
|
First DuPage Bank |
Westmont |
IL |
23-Oct-09 |
|
Riverview Community Bank |
Otsego |
MN |
23-Oct-09 |
|
Bank of Elmwood |
Racine |
WI |
23-Oct-09 |
|
Flagship National Bank |
Bradenton |
FL |
23-Oct-09 |
|
Hillcrest Bank Florida |
Naples |
FL |
23-Oct-09 |
|
American United Bank |
Lawrenceville |
GA |
23-Oct-09 |
|
Partners Bank |
Naples |
FL |
23-Oct-09 |
|
San Joaquin Bank |
Bakersfield |
CA |
16-Oct-09 |
|
Southern Colorado National Bank |
Pueblo |
CO |
2-Oct-09 |
|
Jennings State Bank |
Spring Grove |
MN |
2-Oct-09 |
|
Warren Bank |
Warren |
MI |
2-Oct-09 |
|
Georgian Bank |
Atlanta |
GA |
25-Sep-09 |
|
Irwin Union Bank, F.S.B. |
Louisville |
KY |
18-Sep-09 |
|
Irwin Union Bank and Trust Company |
Columbus |
IN |
18-Sep-09 |
|
Venture Bank |
Lacey |
WA |
11-Sep-09 |
|
Brickwell Community Bank |
Woodbury |
MN |
11-Sep-09 |
|
Corus Bank, N.A. |
Chicago |
IL |
11-Sep-09 |
|
First State Bank |
Flagstaff |
AZ |
4-Sep-09 |
|
Platinum Community Bank |
Rolling Meadows |
IL |
4-Sep-09 |
|
Vantus Bank |
Sioux City |
IA |
4-Sep-09 |
|
InBank |
Oak Forest |
IL |
4-Sep-09 |
|
First Bank of Kansas City |
Kansas City |
MO |
4-Sep-09 |
|
Affinity Bank |
Ventura |
CA |
28-Aug-09 |
|
Mainstreet Bank |
Forest Lake |
MN |
28-Aug-09 |
|
Bradford Bank |
Baltimore |
MD |
28-Aug-09 |
|
Guaranty Bank |
Austin |
TX |
21-Aug-09 |
|
CapitalSouth Bank |
Birmingham |
AL |
21-Aug-09 |
|
First Coweta Bank |
Newnan |
GA |
21-Aug-09 |
|
ebank |
Atlanta |
GA |
21-Aug-09 |
|
Community Bank of Nevada |
Las Vegas |
NV |
14-Aug-09 |
|
Community Bank of Arizona |
Phoenix |
AZ |
14-Aug-09 |
|
Union Bank, National Association |
Gilbert |
AZ |
14-Aug-09 |
|
Colonial Bank |
Montgomery |
AL |
14-Aug-09 |
|
Dwelling House Savings and Loan |
Pittsburgh |
PA |
14-Aug-09 |
|
Community First Bank |
Prineville |
OR |
7-Aug-09 |
|
Community National Bank of Sarasota County |
Venice |
FL |
7-Aug-09 |
|
First State Bank |
Sarasota |
FL |
7-Aug-09 |
|
Mutual Bank |
Harvey |
IL |
31-Jul-09 |
|
First BankAmericano |
Elizabeth |
NJ |
31-Jul-09 |
|
Peoples Community Bank |
West Chester |
OH |
31-Jul-09 |
|
Integrity Bank |
Jupiter |
FL |
31-Jul-09 |
|
First State Bank of Altus |
Altus |
OK |
31-Jul-09 |
|
Security Bank of Jones County |
Gray |
GA |
24-Jul-09 |
|
Security Bank of Houston County |
Perry |
GA |
24-Jul-09 |
|
Security Bank of Bibb County |
Macon |
GA |
24-Jul-09 |
|
Security Bank of North Metro |
Woodstock |
GA |
24-Jul-09 |
|
Security Bank of North Fulton |
Alpharetta |
GA |
24-Jul-09 |
|
Security Bank of Gwinnett County |
Suwanee |
GA |
24-Jul-09 |
|
Waterford Village Bank |
Williamsville |
NY |
24-Jul-09 |
|
Temecula Valley Bank |
Temecula |
CA |
17-Jul-09 |
|
Vineyard Bank |
Rancho Cucamonga |
CA |
17-Jul-09 |
|
BankFirst |
Sioux Falls |
SD |
17-Jul-09 |
|
First Piedmont Bank |
Winder |
GA |
17-Jul-09 |
|
Bank of Wyoming |
Thermopolis |
WY |
10-Jul-09 |
|
Founders Bank |
Worth |
IL |
2-Jul-09 |
|
Millennium State Bank of Texas |
Dallas |
TX |
2-Jul-09 |
|
First National Bank of Danville |
Danville |
IL |
2-Jul-09 |
|
Elizabeth State Bank |
Elizabeth |
IL |
2-Jul-09 |
|
Rock River Bank |
Oregon |
IL |
2-Jul-09 |
|
First State Bank of Winchester |
Winchester |
IL |
2-Jul-09 |
|
John Warner Bank |
Clinton |
IL |
2-Jul-09 |
|
Mirae Bank |
Los Angeles |
CA |
26-Jun-09 |
|
MetroPacific Bank |
Irvine |
CA |
26-Jun-09 |
|
Horizon Bank |
Pine City |
MN |
26-Jun-09 |
|
Neighborhood Community Bank |
Newnan |
GA |
26-Jun-09 |
|
Community Bank of West Georgia |
Villa Rica |
GA |
26-Jun-09 |
|
First National Bank of Anthony |
Anthony |
KS |
19-Jun-09 |
|
Cooperative Bank |
Wilmington |
NC |
19-Jun-09 |
|
Southern Community Bank |
Fayetteville |
GA |
19-Jun-09 |
|
Bank of Lincolnwood |
Lincolnwood |
IL |
5-Jun-09 |
|
Citizens National Bank |
Macomb |
IL |
22-May-09 |
|
Strategic Capital Bank |
Champaign |
IL |
22-May-09 |
|
BankUnited, FSB |
Coral Gables |
FL |
21-May-09 |
|
Westsound Bank |
Bremerton |
WA |
8-May-09 |
|
America West Bank |
Layton |
UT |
1-May-09 |
|
Citizens Community Bank |
Ridgewood |
NJ |
1-May-09 |
|
Silverton Bank, NA |
Atlanta |
GA |
1-May-09 |
|
First Bank of Idaho |
Ketchum |
ID |
24-Apr-09 |
|
First Bank of Beverly Hills |
Calabasas |
CA |
24-Apr-09 |
|
Michigan Heritage Bank |
Farmington Hills |
MI |
24-Apr-09 |
|
American Southern Bank |
Kennesaw |
GA |
24-Apr-09 |
|
Great Basin Bank of Nevada |
Elko |
NV |
17-Apr-09 |
|
American Sterling Bank |
Sugar Creek |
MO |
17-Apr-09 |
|
New Frontier Bank |
Greeley |
CO |
10-Apr-09 |
|
Cape Fear Bank |
Wilmington |
NC |
10-Apr-09 |
|
Omni National Bank |
Atlanta |
GA |
27-Mar-09 |
|
TeamBank, NA |
Paola |
KS |
20-Mar-09 |
|
Colorado National Bank |
Colorado Springs |
CO |
20-Mar-09 |
|
FirstCity Bank |
Stockbridge |
GA |
20-Mar-09 |
|
Freedom Bank of Georgia |
Commerce |
GA |
6-Mar-09 |
|
Security Savings Bank |
Henderson |
NV |
27-Feb-09 |
|
Heritage Community Bank |
Glenwood |
IL |
27-Feb-09 |
|
Silver Falls Bank |
Silverton |
OR |
20-Feb-09 |
|
Pinnacle Bank of Oregon |
Beaverton |
OR |
13-Feb-09 |
|
Corn Belt Bank & Trust Co. |
Pittsfield |
IL |
13-Feb-09 |
|
Riverside Bank of the Gulf Coast |
Cape Coral |
FL |
13-Feb-09 |
|
Sherman County Bank |
Loup City |
NE |
13-Feb-09 |
|
County Bank |
Merced |
CA |
6-Feb-09 |
|
Alliance Bank |
Culver City |
CA |
6-Feb-09 |
|
FirstBank Financial Services |
McDonough |
GA |
6-Feb-09 |
|
Ocala National Bank |
Ocala |
FL |
30-Jan-09 |
|
Suburban FSB |
Crofton |
MD |
30-Jan-09 |
|
MagnetBank |
Salt Lake City |
UT |
30-Jan-09 |
|
1st Centennial Bank |
Redlands |
CA |
23-Jan-09 |
|
Bank of Clark County |
Vancouver |
WA |
16-Jan-09 |
|
National Bank of Commerce |
Berkeley |
IL |
16-Jan-09 |
|
Sanderson State Bank |
Sanderson |
TX |
12-Dec-08 |
|
Haven Trust Bank |
Duluth |
GA |
12-Dec-08 |
|
First Georgia Community Bank |
Jackson |
GA |
5-Dec-08 |
|
PFF Bank & Trust |
Pomona |
CA |
21-Nov-08 |
|
Downey Savings & Loan |
Newport Beach |
CA |
21-Nov-08 |
|
Community Bank |
Loganville |
GA |
21-Nov-08 |
|
Security Pacific Bank |
Los Angeles |
CA |
7-Nov-08 |
|
Franklin Bank, SSB |
Houston |
TX |
7-Nov-08 |
|
Freedom Bank |
Bradenton |
FL |
31-Oct-08 |
|
Alpha Bank & Trust |
Alpharetta |
GA |
24-Oct-08 |
|
Meridian Bank |
Eldred |
IL |
10-Oct-08 |
|
Main Street Bank |
Northville |
MI |
10-Oct-08 |
|
Washington Mutual Bank |
Henderson |
NV |
25-Sep-08 |
|
Ameribank |
Northfork |
WV |
19-Sep-08 |
|
Silver State Bank |
Henderson |
NV |
5-Sep-08 |
|
Integrity Bank |
Alpharetta |
GA |
29-Aug-08 |
|
Columbian Bank & Trust |
Topeka |
KS |
22-Aug-08 |
|
First Priority Bank |
Bradenton |
FL |
1-Aug-08 |
|
First Heritage Bank, NA |
Newport Beach |
CA |
25-Jul-08 |
|
First National Bank of Nevada |
Reno |
NV |
25-Jul-08 |
|
IndyMac Bank |
Pasadena |
CA |
11-Jul-08 |
|
First Integrity Bank, NA |
Staples |
MN |
30-May-08 |
|
ANB Financial, NA |
Bentonville |
AR |
9-May-08 |
|
Hume Bank |
Hume |
MO |
7-Mar-08 |
|
Douglass National Bank |
Kansas City |
MO |
25-Jan-08 |
|
Miami Valley Bank |
Lakeview |
OH |
4-Oct-07 |
|
NetBank |
Alpharetta |
GA |
28-Sep-07 |
|
Metropolitan Savings Bank |
Pittsburgh |
PA |
2-Feb-07 |
|
Bank of Ephraim |
Ephraim |
UT |
25-Jun-04 |
|
Reliance Bank |
White Plains |
NY |
19-Mar-04 |
|
Guaranty National Bank of Tallahassee |
Tallahassee |
FL |
12-Mar-04 |
|
Dollar Savings Bank |
Newark |
NJ |
14-Feb-04 |
|
Pulaski Savings Bank |
Philadelphia |
PA |
14-Nov-03 |
|
First National Bank of Blanchardville |
Blanchardville |
WI |
9-May-03 |
|
Southern Pacific Bank |
Torrance |
CA |
7-Feb-03 |
|
Farmers Bank of Cheneyville |
Cheneyville |
LA |
17-Dec-02 |
|
Bank of Alamo |
Alamo |
TN |
8-Nov-02 |
|
AmTrade International Bank |
Atlanta |
GA |
30-Sep-02 |
|
Universal Federal Savings Bank |
Chicago |
IL |
27-Jun-02 |
|
Connecticut Bank of Commerce |
Stamford |
CT |
26-Jun-02 |
|
New Century Bank |
Shelby Township |
MI |
28-Mar-02 |
|
Net 1st National Bank |
Boca Raton |
FL |
1-Mar-02 |
|
NextBank, NA |
Phoenix |
AZ |
7-Feb-02 |
|
Oakwood Deposit Bank Co. |
Oakwood |
OH |
1-Feb-02 |
|
Bank of Sierra Blanca |
Sierra Blanca |
TX |
18-Jan-02 |
|
Hamilton Bank, NA |
Miami |
FL |
11-Jan-02 |
|
Sinclair National Bank |
Gravette |
AR |
7-Sep-01 |
|
Superior Bank, FSB |
Hinsdale |
IL |
27-Jul-01 |
|
Malta National Bank |
Malta |
OH |
3-May-01 |
|
First Alliance Bank & Trust Co. |
Manchester |
NH |
2-Feb-01 |
|
National State Bank of Metropolis |
Metropolis |
IL |
14-Dec-00 |
|
Bank of Honolulu |
Honolulu |
HI |
13-Oct-00 |
FDIC Shuts Down Four More Banks
Sun America Bank in Florida, Bank of Illinois, Waterfield Bank in Maryland, and Centennial Bank in Utah were all shut down by the FDIC yesterday. The assets of Bank of Illinois and Sun America Bank were purchased by Heartland Bank and First Citizens Bank respectively. Waterfield Bank and Centennial Bank were unable to find buyers which means that all funds will be refunded to account holders. The 191 bank failures over the past 2 years seems like a pretty high number until you take into account that some economists have estimated that as many as 1,000 banks will fail over the next few years. There are still over 700 banks on the FDIC’s troubled list making it highly likely surpass the 140 bank failures that took place last year. All of these bank collapses are rapidly depleting the FDIC’s insurance fund.
