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We sometimes want to hear a much-needed expression that really pinpoints a desired need..All our lives –we hear–let’s make mad money..Let’s get that good paying job..As we see fit–there is one expression we have come up with that has a lot of meaning for wealth..We have even given it a definition before we will reveal the expression:Making a very decent amount of wealth working physically on its endeavors no more than 30-55 hrs a year..Physically can be mind not just strenuous labor.. Its called ‘physically not having to be there’ income..Tom Cruise would not have near his wealth if only he made a percentage of a theater’s revenues on movies he had to physically be there in attendance with the audience at any given time..But he doesnt have to ..He makes money off all those theaters in which his image is only there..Thus in doing so he defies the limits of ‘you can only be at one given place at any one given time’..His analogy might be a bad one for us non-movie stars but we are trying to let you know the richest people in the world make money ‘without physically having to be there’..If you work a job that pays 15 an hour..You can’t slice your body in half and regenerate into two identical beings of yourself and make another 15 an hour at another job site –can you? But can you only be at one given place at any one given time..This income called earned income is what most of us focus on..Its the least of power in our opinion since it cant defy the being at two places at any one given time..You think a real estate investor after buying a good investment home at a low price had to stand by the for sale sign from 8 to 5 pm every day until it sold..Do you think he had to stand by the sign for 8 hrs a day 5 days a week to make his home appreciate during that time?..No..Sure you had to spend x amount of time before an investment, but anything less than 55 hrs a year of studying gets to be put in the category-’physically not have to be there income.’ Write it on your refrigerator if you have to..When you apply these defined incomes to your life assuming your investments appreciate rather well,then you can be doing another type of income generator while your investments appreciate..We want to make our readers get wealthier..This one persona is a much overlooked one..We will capture your attention on its powers and why many people just dont get it..
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We like seeing greed on TV programs..Its often funny to watch expressions of greed on the character’s faces..Mr. Hathaway was one such character on ‘The Beverly Hillbillies’.The banker loved to make high principal loans if he knew he was going to get his money back and he loved to delve into stocks..Remember the crawdad stock recommendation by Mr. Clampett? Think of great stock picks as` great Ripoff Banker loans..When executed, they would be a real ripoff to the borrower and the greed would encompass the lender to extremes..Can you imagine Mr Hathaway if he had the rate of returns on his loans such as our recommendations..MIDD-86.9% in 2 months..ATW–banker’s interest rate -53.2% interest gained on the principal 5 days short of 2 months..In fact our 11 stocks,one locked in gain-was 31.4% since April 22,2009 highs of the day when we last checked–none recommended before 2/12/09..Why do we hate day trading and swing trading? Simple–you have to ‘physically be there’ if you play that game glaring at the ticker tape all or most of the day..Thus robbing yourself of doing other income streams of wealth..There went the 30-55 hrs a year down the drain..Plus many studies show short term trading has the highest percentage risk of a loss -counting all losses ,small and large..Mr Howell would love 31.4% in less than 2.5 months..He just needs to get off the island–the island that many short term swing traders are on that limits the ‘depth defying like’ ability to do ‘make money without physically having to be there.’ Remember our definition..We will come up with ideas of one such activity that produces this passive or ‘not have to be there physically’ income..If you can find a way to slice our bodies up and regenerate so we can be at 10 different plants at the same time making 15 an hour at each,let us know..We’ll know then we have reached readers that has travelled from another ‘looney’ system -note I states ‘looney’ system not lunar system..
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As far as` Warren Buffet, he is great ,but honestly if you take 4-5 stocks out of his history -he isnt overwhelming..Still above average..But that is the point in a most small to mid caps dabbling until you get that triple bagger–who knows maybe a 4 bagger? But we will say his style of investment doesnt apply to the average common folk now..For one, he stakes his claim on large-cap stocks that are non-risky and can basically do things we cant..He can buy a stock at 70 and the stock can go to 38 and has many times the ability to average down enough where his average buy can be 39..Not all -but many..Some bank stocks if his holdings are near 10% of stockholders equity,he cant add to more of his positions per a certain bank holding ruling…Who can do that anyway? His Berkshire Hathaway cant buy the stocks he did as a young man–small to mid-caps..He has even mentioned that when he was starting out as a young man for many years ,those were the type of stocks he would invest in..He believes there isnt enough good ideas out there for his huge wealth since a small cap in their holdings would runup the stock too much just on their buyings..But I think he can fair well buying many less than large caps in my opinion, but he still does well with the cards he has–which is now small nation-like..But again,that is just my opinion..Also,he can control management by buying and holding longer than normal..We cant..Nor can you..But think about buying stocks for longer holds than swing traders..You can then be employing other wealth-generating income streams..Think about a savings account..Let’s say ORNL CU savings account has a APR percentage rate of 2.75 per year..I am not sure what it exactly is now but somewhere in the 2% range I believe..Let’s say you bought a stock we recommended at 22.22 a share where we basically recommended it on 2/23/09 and its 41.54 as of closing on April 23,2009–86.9% up..The $ 20.00 at my online brokerage to buy and sell the stock may not knock the gain by 1%..Say you sold it now–less than a year..Only 2 months later..You take down the rate of return to 69.52% due to capital gains of about 20%..86.9 times .80 =69.5%..69.52 divided by 2.75 (assumption that ORNL CU savings account interest in 365 days is 2.75%)=25.28 years in that savings account to equate what that stock did in 2 months!! The study of the stock would fit into the average of 30 to 55 hrs a year..So ‘not physically having to be there income’ that would fall in and not a bad income generator at that.. We will even take 20% annually or 15% annually for that matter.. Then see or guess what Mr Hathaway would think of those ‘bank ripp-off loan’ generators…Mr Howell on Gilligan’s Island may be sliced into many identical Mr. Howell’s of wealth and be at many different places at once if you equate it with earned income..Alright we are being silly but you get the point…Do you have to be in Wall Street for endless hours to make money? You can if you watch the ticker tape all day..And maybe lose money in that process..
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Rob owns no stock in the above 3 paragraphs article..Mike owns only MIDD in their article above..Please do your own independent rese
arch before you make an investment purchase..See our disclaimer.
