Tag Archive | "Warren Buffett"

Have Two Sources of Income


We cannot be sure what equity investments will do so we need a second source of income to make sure we have time to complete our equity investing plan.

Recent messages at this site have warned about the dangers of sideways motion and showed how this type of action can last for many years, even decades.

An article in the New York Times “Warren Buffett’s Optimistic? Pessimistic? No, Realistic” (1) confirms these facts.

The article says about Buffett:  He was careful to say the markets would improve in the long term — though his time frame for certainty was decades, not months or not even necessarily years from now. About the current climate, he said, “You can bet on America, but you kind of have to be careful about how you bet.” He added “simply because markets can do anything.”

He talked about the possibility of a second wave of coronavirus infections. He acknowledged that the world might profoundly change for years to come. And he spent a notable portion of the meeting detailing the economy’s performance since 1789, with a particular focus on the years between 1929 and 1951, a period in which the stock market took 22 years to get back to its highs.

More than his words, he spoke with his wallet. He usually relishes a down stock market to take advantage of lower prices. Not this time. He hadn’t made any purchases recently; he didn’t buy up stocks when they had fallen last month during what felt like a mini-panic: “We have not done anything, because we don’t see anything that attractive to do.”

This time, he is husbanding his capital. “Our position will be to stay a Fort Knox,” he said.

“I don’t believe anyone knows what the market is going to do tomorrow, next week, next month, next year.”

This chart below can help us understand why Buffett focused on the 1929 to 1951 period.  It shows the performance of the Dow Jones Industrial Average for over 100 years (since Feb.1919).  It’s interactive and I recommend looking it over.  Click here. Macroeconomics.net

chart

Let’s look at what happened to the Dow Jones Industrial Average at various points in each bear market over the past 100 years.

In July 1929 the DJIA rose to an all time high of 5,198.  Then it collapsed to 814 by June 1932.  The index did not regain that previous high number again until December 1958.

That full recovery took 29 years for investors who invested at the Dow’s all time high.

If an investor entered a Dow Jones Industrial Index ETF (for example only – they did not exist in that era) after the index had fallen 30% (it was then 3,648) in July 1930, it still took 24 years for the index to recover to 3,733 in November 1954, or about 24 years.

However if an investor invested in the index after it fell 40% to 3,119 in February 1931, he or she only waited a bit over five years to November 1936 when it reached 3,324.

However… and note the trend as it repeats in each recovery, after achieving a big recovery, the Dow dropped back and stayed below its all time high until August 1954.

Fast forward to the next bear that began in 1966. The DJIA reached a high of 7,884 in December 1966.

Investors who invested right at that top, did not see a recovery until August 1995 when the Dow reached 7,801, in about 30 years.

Investors who entered the market 30% below the 1965 high (5,519 in Sept 1969) saw it recover by March 1973 but then slipped until June 1987 and then immediately slipped again to September 1991.  The full convincing recovery took about 26 years.

Investors however who waited until the DJIA fell 40% to 4,731 in December 1973 saw a recovery in January 1987, but again the index immediately slipped and did not reach that level again until August 1988, about 15 years.

In other words it took a full 15 years for a full convincing recovery.

The next DJIA high came in December 1999 at 17,671.

When this bear began, the index reached a 30% loss (12,370) by August 2002.

Those who jumped in then saw a quick recovery by June 2003.

The DJIA then rose into the 17,000 again, but fell quickly yet an the 30% loss range was not reached again until October 2010.

Those waited for a 40% (10,603) fall missed the recovery completely. The Dow’s lowest point was 11,220 before it began the bull that just ended and rose to 28,738

If the DJIA falls 30% from this latest all time high it will reach 20,107.

A 35% drop will bring the index to 18,680. A 40% drop will bring it to 17,243.

This review provides three clues.

It suggests that the time from an all time high to the next can take decades, but the periods between them are becoming shorter.

There are also suggestions that investments in the Dow at 30% below the top have a mini crash after their first recovery.

In the 2008 bear and bull waves, the Dow Jones Industrial Average never reached a 40% drop.

Investors who want to time markets and get in right at the bottom, might have a pretty good wait if history repeats.  Those who increase their portfolios after a 30% drop can also have a considerable wait as well, but if they put off much longer they’ll miss some of the rebound.

These facts and the uncertainty of what’s ahead means we should have more than one way to gain profit.

This is why we created the International Club over 30 years ago, to help club members earn income from an at home business plus protect their savings and increase its value with value equity investing.

When you join the club you get seven workshops and courses on how to earn everywhere with home micro businesses.  We call this our “Live Well and Free Anywhere Program”.   The program contains a series of courses and reports that show ways to earn income from your home and be free. These courses and reports are:

  • The course “Self Fulfilled – How to Write to Self Publish”
  • The course “Event-Full – How to Earn Conducting Seminars and Tours”
  • The course “International Business Made EZ”
  • Video Workshop by our webmaster David Cross
  • The entire weekend “Writer’s Camp” in MP3
  • The report “How to Raise Money Abroad”
  • Report and MP3 Workshop “How to Gain Added Success With Relaxed Concentration”

The fee for this package is normally $299.

As a club member you get these seven courses FREE.

Club members also receive a second way to profit, the $299 Purposeful Investing Course (PI) FREE.

The Purposeful Investing Course is a complete and continual study of what to do about the movement of international major and emerging stock markets.

The course teaches how to form  a Good Value Stock Market Strategy.  The course teaches an analysis that is rational, mathematical and does not worry about short term ups and downs.  This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.  Little knowledge, time, management or guesswork are required.  The investments create a diversified portfolio of good value indices in the best value stock markets around the world.

Pi opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

The Pi subscription is normally $299 per annum but as a club member you receive Pi at no charge and save an additional $299.

When you join the International Club you receive both courses, plus much more:

#1: The seven part $299 “Live Well and Free Anywhere Program including our Self Publishing Course”.  Free.

#2: The $299 Purposeful Investing Course (Pi).   Free.

#3: The $29.95 report “Three Currency Patterns For 50% Profits or More”.  Free.

#4: The $39.99 report “Silver Dip 2019”.  Free

#5: Three Natural Health Reports at $19.99.   All three free.

#6: The $39.99 “Live Anywhere – Earn Everywhere” report.  Free.

#7: Plus updates and other report I release in the year ahead.

These reports, courses and programs would cost $767.73 if purchased individually.

The International Club membership is $349 so the 2020 membership normally saves $418.78.

However due to the COVID-19 Pandemic we have cut membership in half and are currently accepting the discounted membership of $174.50 today.  You save $598.23 instead!

Then because this global recovery is going to take years, we’ll maintain your membership at just $99 a year rather than $349.  Your membership will be auto renewed in 2021 at $99, though you can cancel membership at any time.

Save $598.23.  Join the International Club for just $174.5o.   Receive all the above online now, plus all reports, course updates and Pi lessons through the rest of 2020 and into of 2021  at no additional fee.

Don’t miss this opportunity.  Sign up with this special offer.

Click here to become a member at the discounted rate of $174.50

Gary

(1) www.nytimes.com/2020/05/03/business/dealbook/warren-buffett-berkshire-hathaway.html?campaign_id=2&emc=edit_th_200504&instance_id=18184&nl=todaysheadlines&regi_id=48317279&segment_id=26549&user_id=208b2cbe62eb7b536babab791d172bc7

Spooky Thoughts on Thinking


Here is a Halloween thought that is so spooky it would be funny if the problem were not so serious.

A message at this site Pumpkin Health Tip looked at how Ecuador shamans use pumpkins for healing.  Then the post shared ayurvedic nutritional ideas on why we should eat pumpkin during the autumn and winter.

Beware

Beware or not?

The next day a friend who has great experience in ayurved wrote:  Gary, when the Europeans came to N. America originally they found many of the natives suffering from severe psoriasis. The natives had many remedies for this most of which involved tar in some way or another.  Pumpkins and winter squashes in general are said in Ayurveda to be the source of most of the serious skin diseases people suffer from and one of the ways to remedy those skin diseases is simply to stop eating them. We don’t have them in our diet at all and haven’t had for 15 years.

When I pointed out that winter squashes and pumpkin were recommended for winter eating by an ayurvedic physician who has been very helpful to Merri and me over the past 20 years, our friend replied:

That Doctor’s learning is from the books and not from a family tradition.  The simple fact remains, the winter squashes, and pumpkin in particular, produce skin disease.

I did not bother to point out that the Ecuador shaman we worked with, who definitely used pumpkins in his nutritional plan was also a healer of many generations.  His father and grandfather, etc.  were great healers as well and this yatchak had been taken at age five and apprenticed to other great healers up and down North, Central and South America.

Needless to say this message is not about pumpkins, its about how to deal with conflicting news and the dangers of trying to process overwhelming amounts of data.

Getting too much input can be worse than not having enough.

The Natural Health Crunch

Expanded horizons should bring expanded ability and wisdom.  Wouldn’t you think?  Yet it is known that a foible of the human mind is its reluctance to make too many decisions.   A choice of two chocolates in a box is better than one. Six choices better than two.  When there are more than six or seven choices the satisfaction of the chocolate decision grows less rather than more.  Confusion overcomes options.

The mental juggling is even worse if you like all of the chocolate choices given.

So too with the process of natural health.  Believe strongly in one proven health system, use it and you’ll have good natural health.  In fact there is evidence that the faith in a natural health system is as important as the system itself.

Knowing two systems can confuse and create doubt in both systems.  Know three disciplines and the confusion can grow exponentially.

Anita Moorjani, best selling author, explains this problem in her book “Dying To Be Me”.

After fighting cancer for almost four years, the cancer in her body was at stage 4B (throughout her body).  Her weight was down to 90 pounds.  Overwhelmed by malignant cells, her organs began shutting down.  In a coma, she entered into an extraordinary near-death experience where she realized her inherent worth . . . and the actual cause of her disease. Upon regaining consciousness, Anita found that her condition had improved so rapidly that she was able to be released from the hospital within weeks . . . without a trace of cancer in her body though medical doctors with experience in this field said, “Whichever way I look at it, you should be dead!”

The book tells how she was raised in Hong Kong by her Indian parents, cared for by a Cantonese nanny and given a British education. She is multilingual speaking English, Cantonese, and an Indian dialect.  Yet when diagnosed with cancer in April 2002 she returned to her Indian roots and after six months of living a pure ayurvedic life with a guru, she felt cured.

Upon returning to Hong Kong she began suffering death by doubt as exposure to multi cultural health sciences, that all worked differently, eroded the belief in her cure and confused her health.

Moorjani wrote: When I returned home to Hong Kong at first many people remarked on how well I looked.  I certainly felt better than I had, both physically and emotionally, but my jubilation was short lived. It wasn’t long before others wanted to know what I had been doing for so long in India and how I’d healed.

When I told them about my ayurvedic regimen, however, I received mainly fear-based and negative responses. These were well meaning people who genuinely cared about me and my well-being, and they were skeptical about my choices, which is why they had such a great impact on me. Most believed that cancer couldn’t be treated in that way, and I slowly felt the doubts and fear creeping back into my psyche as I defended my position.

I attempted to understand Traditional Chinese Medicine (TCM), since it’s commonly practiced here. However because it conflicted so much with my Ayurveda, I was left feeling very confused.

To make matters worse, I turned to Western naturopathy for help because I was so bewildered.  This not only added to the confusion, but also increased my fears. I was getting conflicting information from every discipline.

So I became very stressed about food and was afraid of eating almost anything. I didn’t know what was good for me and what wasn’t, because each system of healing espoused a different truth ad they all conflicted with one another. This confusion only added to my already overwhelming ears. And as the terror tightly griped me in its vice once more, I watched helplessly as my health rapidly deteriorated.

Confusion can ruin investing as well.

Too much input about markets, stock, economies and all the bad news that floods the daily media is overwhelming.   We each need a simple strategy that we understand and that we stick to.

The book “Too Big to Fail” by Andrew Sorkin explains how Warren Buffett  does not research by maintaining a database of up-to-the-quarter estimates, etc.

So much data would dilute and distract from the deep focus on the areas he does research.

Buffet’s research is  from reading publicly available documentation, introductions from trusted lieutenants, and personally meeting the leaders of his investment prospects.  Buffett keeps it simple and understandable to him.

Whether you are thinking about pumpkins, investments or politics (now that’s a real spooky thought!), limit your input to what you understand, what you are passionate about and what makes you feel good.

If the 11 oclock news leaves you feeling sleepless, don’t turn it on.

Tonight its okay to be spooky, but there is no reason to get spooked every night.

Gary

Gain From Pandemics – Riots & Election Volatility

On top of the pandemic… and the riots, another election on its way… all the robo calls from politicians… the dirty tricks and the innumerable amounts of nonsense this vital process brings.

However America’s politics turn out, one thing is sure, there will be volatility in stock markets during the election process.

The first reason markets will bounce has nothing to do with politics or policies.   A market correction was due regardless of the party or the person in office and COVID-19 was a pretty good excuse for it to suddenly drop.  Expect plenty more volatility.  Whether the economy recovers slowly or quickly, history suggests that the US market will do a lot of moving up and down.

Second the new politics has created an uncertain era.  Everyone has been shaken over the past three years whether they are pleased with the government or not.

Nothing frightens markets like uncertainty. 

What more could we ask for… an uncertain COVID-19 future and riots in 30 major cities.

Well interest rates could be a dark horse.  I the massive government handouts create inflation, interest rates will rise and rising interest rates will push stock market prices down.

Despite these pitfalls, there is a way to profit using the strong US dollar and undervalued non dollar stock markets to pick up good value shares.

During nearly five decades of global investing I have noticed found that good value strategies are the best way to profit long term, through good politics and bad.  The steps to take are simple.

The first tactic is to seek safety before profit.

We can look at Warren Buffett’s investing strategy as an example.  Buffett success is talked about a lot, but rarely does anyone explain how he make so much money.  That was the fact until some researchers really stripped his operation bare.  They looked at everything and learned the deepest of Buffett’s wealth management secrets.  Fortunately they published all in a research paper at Yale University’s website. that reveals important truths about extending wealth.

This research shows that the stocks Buffett chooses are safe (with low beta and low volatility), cheap (value stocks with low price – to – book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios).

The second tactic is to maintain staying power.  At times Buffet’s portfolio has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

A 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of outperformance to 70%.

However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio the better the odds of outstanding success.

The Buffett strategy integrates time and value for safety and profit.

A third tactic is using limited leveraging, tactic in the strategy boosts profit.  Buffett leverages his portfolio at a ratio of approximately 1.6 to 1.   The Yale published research paper shows the leveraging methods used by Warren Buffett to amass his $50 billion fortune.  The researchers found that the returns from Buffett’s investment company, Berkshire Hathaway, far outweighed those achieved by any rival that has operated for 30 years or more.  The research shows that neither luck nor magic are involved.  Instead, the paper shows that Buffet’s success hinges on using leverage at the rate of 1.6.

To sum up the strategy, Buffet uses limited leverage to invest in large purchases of “cheap, safe, quality stocks”.  He limits leverage so he can hold on for very long periods of time, surviving rough periods where others might have been forced into a fire sale or a career shift.

Stated in another way buffet uses logic (buy good value) to have the conviction, wherewithal, and skill to invest with leverage over many decades.

What do we do when we are not Warren Buffett?

May I introduce the Purposeful Investing Course (Pi) for those who want to invest like Warren Buffet, but know they are not.  This course is based on my 50 plus years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy Extending Wealth

Pi’s mission is to make it easy for anyone to create a three point strategy, like Buffett’s even though they do not have a lot of time for or knowledge about investing.

Pi reveals investing secrets and the sciences that make investing easy, safer, less time consuming and increases the chances of profit.

One secret is to invest with a purpose beyond the cash.  One tactic as mentioned is staying power.  This means not being caught short and having to sell during a period of loss.  This also means having enough faith in a strategy that we stick to the plan.  When we invest with purpose, doing what we love, we enjoy the process more and are more likely to hold on during down times, when most poor investors panic and sell.

Slow, Worry Free, Good Value Investing

Stress, worry and fear are three of an investor’s worst enemies.  They create the Behavior Gap, a trait exhibited by most investors, that causes them to underperform any market sector they choose.  The behavior gap is created by natural human responses to fear.   Pi helps create profitable strategies that avoid losses from this gap.

Spanning the Behavior Gap

Behavior gaps are among the biggest reasons why so many investors fail.  Human evolution makes fear the second most powerful motivator.  (Greed is the third.)  Fear creates investment losses due to behavior gaps.  Fear motivates us more strongly than desire.  By nature investors are risk adverse.

Winning investors though embrace risk because they have a plan based on good value.

Purpose is the most powerful motivator,  stronger than fear and greed, so a strategy with purpose is the most powerful of all.

Combine your needs and capabilities with good value secrets and the math to back up your value selections through the Pifolio – The Pi Model Portfolio

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories (often created by someone with vested interests) and is based entirely on good math.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my (almost) 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2: Cash flow to price

#3: Earnings to price

#4: Average dividend yield

#5: Return on equity

#6: Cash flow return.

#7: Market history

We follow this research of a brilliant mathematician and have tracked this analysis for over 20 years.    This is a complete and continual study of international major and emerging stock markets.

This analysis forms the basis of a Good Value Stock Market Strategy.   The analysis is rational, mathematical and does not worry about short term ups and downs.   This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

A country ETF provides diversification and cost efficiency by spreading one simple, even small investment into a basket of equities in a good value stock market.  The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.

Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi matches this mathematical certainty with my fifty years of experience. This opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

For example in the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.

The two conditions are in place again!  There are currently ten good value (non US) developed markets,  plus 10 good value emerging markets.

Pi shows how to easily create a diversified, worry free portfolio in some of these good value markets using Country Index ETFs.

The current strength of the US dollar is a second remarkable similarity to 30 years ago.   The dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  There is so much more to write and the trends are so clear that I have created a short, but powerful report “Three Currency Patterns For 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but you’ll receive the report “Three Currency Patterns For 50% Profits or More” FREE when you subscribe to Pi.

Leverage

Pi also explains when leverage provides extra potential without undo risk.  For example in 1986 I issued a report called “The Silver Dip” that showed how to borrow 12,000 British pounds (at almost 1.6 to 1 dollars per pound the loan created US$18,600) and use the loan to buy 3835 ounces of silver at around US$4.85 an ounce.

Silver had crashed, I mean really crashed from $48 per ounce.  As prices decreased from early 1983 into 1986, total supply had fallen to 449.7 million ounces in 1986.  Mine production was restricted by the low prices at this time, with silver reaching a low for this period of $4.85 in May 1986.  Secondary recovery also was constricted by these low prices.

Then silver’s price skyrocketed to over $11 an ounce within a year.  The $18,600 loan was now worth $42,185.

The loan was in pounds and in May 1986 the dollar pound rate was 1.55 dollars per pound.  So the 12,000 pound loan purchased $18,600 of silver.  The pound then crashed to 1.40 dollars per silver.  The loan could be paid off for $13,285 immediately creating an extra $5,314 profit.  The profit grew to $47,499 in just a year.

Conditions for the silver dip have returned.  The availability of low cost loans and silver are at an all time low.  The price of silver has crashed from nearly $50 an ounce to below $14 as did shares of the iShares Silver ETF (SLV).

Now the SLV price is taking off!

silver slv

iShares Silver Trust (symbol SLV) from www.finance.yahoo.com

Imagine investing in a spike like this… with leverage!

At the same time the silver gold ratio has sot well past 80, a strong sign to invest in precious metals.

I have updated a special report “Silver Dip 2019” about a leveraged silver speculation that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons gained through 30 years of speculating and investing in precious metals.  While working on the report, when the gold silver ratio slipped to 80 and the price of silver dropped below $14 an ounce, I knew I needed to share this immediately.

I released a new report “Silver Dip 2015” so readers were able to take advantage of these conditions and leverage 1.6 times as a speculation.  That report generated profits as high as 212% and a revised 2019 issue has been produced.

“The Silver Dip 2109”  sells for $39.95 but  you receive  “Silver Dip 2019” FREE when you subscribe to Pi.

Save

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive the $29.95 report “Three Currency Patterns For 50% Profits or More” and the $39.95 report “The Silver Dip 2019” free.

Triple Guarantee

Enroll in Pi.   Get the first monthly issue of Pi, and the report “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2019” right away.

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free purposeful investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  I guarantee you can keep “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2109” report as my thanks for trying.

You have nothing to lose except the fear.   You have the ultimate form of financial security to gain.

Subscribe to the Pi for $197.   You Save $158.95.

Your subscription will be charged $299 a year from now, but you can cancel at any time.

Gary

 

 

 

 

Pi’s Basic Purpose


This reply to a Pi subscriber clarifies how Pi can help in one of three ways.

A long time subscriber sent a note after reading a January 2016 CNBC headline that said “Red alert: A $1 trillion stock bubble ready to pop”.  He asked, Does this affect your thinking? 

I sent this reader the chart of the MSCI Word Index since 1970 (below) and a lengthy reply.

msci world index

MSCI Word Index since 1970.

Here is my reply:  This is a good question.   The answer has little to do with markets, but relates to questions of time, mentality, comfort and life’s purpose instead.

Most investors spend too much time deciding what markets will do, when the focus should be on their emotions and reactions to the market.  Emotions usually determine profits and losses, not the markets.

The 45 year chart (above) of the MSCI World Index shows that markets are not the problem.  If an investor simply invested in this index and left it alone for the last 45 years they increased their money by more than ten times without any worries, fuss or bother.  In addition if they did so with an Index ETF, they lost little in trading costs.

The MSCI World Index  captures large and mid cap representation across 23 Developed Market countries. With 1,653 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.  You cannot diversify much more than that.  Yet an investment into the ETF  iShares MSCI World (symbol XWD.TO) is like investing equally into all those shares.

However, we can do better than the world index.   An equally weighted portfolio of Top Value country ETFs outperforms the total world ETF.

The difference between a bull market and a bear is time.  We know that the world stock markets have been in a bull market since 1970.   It can be argued that we are at the end of a seven year bull market.  My strategy is based on the belief that we are at the end of a 17 year bear and headed to a 17 year bull market.

I ask Pi subscribers to ask themselves, ‘How do I feel about timing?  What is more important to me, getting out of the bear or getting into the bull?’

All investors should ask (and answer)  “How do I feel when my investments go up or down?How do I react to how I feel?”

In addition all investing strategies should take the cost of stress and the value in quality of life into account.  Here are some thoughts:

How much time does one want to spend fiddling with shares?

Where do we want to find our agony and ecstasy, in share fluctuations or elsewhere?

Do we have better places to spend our time?

Do we feel we really can out think the market?

The Purposeful investing Course (Pi) tracks three types of portfolio that make top value investing easier, safer and more profitable.

The first type of portfolio is the Primary Pifolio.  This is the portfolio that Merri and I use.  We simply diversify into the good value markets as defined by Keppler Asset Management and leave the timing for the long term.  The portfolio may rise or fall but I believe in long term prospects and believe that we will be better off if we leave our portfolio alone and do not try to time the markets.

This strategy stops me from meddling and muddling our investments with wrong decisions.  Our tactics ignore the emotions I go through when shares in my portfolio rise and fall.  This is good because my nature is to become attached to my investments and let my emotions cloud my logic.

Investing in  an equally weighted, diversified, good value portfolio and leaving it alone helps me avoid losses caused by the behavior gap.

This strategy also gives me more time to think about other things such as long term strategy and to spend more time in my business, where I have a much greater chance of making profit.  I’ll ride through storms because I believe in the long term growth prospects of this broadly diversified, equally weighted mix good value equities.  Plus I avoid a lot of trading costs.

The 2nd Pifolio follows Richard Smith’s Tradestops “Smart Trailing Stop 2.0” system.

Smith, like Keppler is a mathematician whom I trust very much.  Instead of using a buy and hold strategy, Smith creates trailing stops based on moving average algorithms.  The computer generated calculations recommend when to sell and when to buy back in.

This approach may create higher profits, if the trailing stop discipline is adhered to.  I am not sure I have the mentality to sell (as the algorithms suggest) most of my portfolio right now.  I agonize over making decisions, so I am often too slow getting in.  However, once I make a choice, I am stubborn and am often too slow getting out.   This means that following a Trailing Stops trading discipline is emotionally hard for me.  My chances of screwing up a good thing by second guessing are high.  Instead I use  a modified approach and let the Trailing Stop alerts warn me when to hold back on investing more.

The third portfolio we track is composed of specific shares selected by Eric Roseman and Thomas Fischer at ENR Asset Management.  ENR uses good value principles for those who feel comfortable with a diversified portfolio of individual shares instead of indices.

When this primer was issued (January 2016) ENR  was recommending to their advisory clients: “Buy long-term bonds, Buy reverse-market indexes, Buy option exchanges, Gold bullion, Raise cash reserves.”

ENR had 12 shares in their recommended portfolio at that time including CBOE Holdings, (NASDAQ CBOE), ProShares Short S&P 500 Index, iShares MSCI EAFE Minimum Volatility ETF (NYSE EFAV) Fanuc Corporation (Tokyo 6954).  These shares were shown in the ENR Piflio Updates.

Pi’s philosophy is not based on the question  “What are markets going to do?”

Pi’s philosophy is based around answers to these questions:

  • How do I react to the ups and downs in equity markets?
  • What type of investing philosophy am I most comfortable with?
  • Which plan am I most likely to stick to?

Support for this thinking comes from a quote from Warren Buffet in the 2013 Berkshire-Hathaway Annual Report:

“Most investors, of course, have not made the study of business prospects a priority in their lives. If wise,  they will conclude that they do not know enough about specific businesses to predict their future earning power.

“I have good news for these non-professionals: The typical investor doesn’t need this skill. In aggregate, American business has done wonderfully over time and will continue to do so (though, most assuredly, in unpredictable fits and starts). In the 20th Century, the Dow Jones Industrials index advanced from 66 to 11,497, paying a rising stream of dividends to boot. The 21st Century will witness further gains, almost certain to be substantial.  The goal of the non-professional should not be to pick winners – neither he nor his “helpers” can do that – but should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal.

“That’s the “what” of investing for the non-professional. The “when” is also important. The main danger is that the timid or beginning investor will enter the market at a time of extreme exuberance and then become disillusioned when paper losses occur. (Remember the late Barton Biggs’ observation: “A bull market is like sex. It feels best just before it ends.”) The antidote to that kind of mistiming is for an investor to accumulate shares over a long period and never to sell when the news is bad and stocks are well off their highs. Following those rules, the “know-nothing” investor who both diversifies and keeps his costs minimal is virtually certain to get satisfactory results. Indeed, the unsophisticated investor who is realistic about his shortcomings is likely to obtain better long-term results than the knowledgeable professional who is blind to even a single weakness.

“My money, I should add, is where my mouth is: What I advise here is essentially identical to certain instructions I’ve laid out in my will. One bequest provides that cash will be delivered to a trustee for my wife’s benefit. (I have to use cash for individual bequests, because all of my Berkshire shares will be fully distributed to certain philanthropic organizations over the ten years following the closing of my estate.)  My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.  (I suggest Vanguard’s.)  I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers.”

Pi’s strategy is based on the long term, big picture belief that in the 21st Century business will have strong further gains.  There will be more productivity through innovation (more supply) and a growing global population (more demand).

We do not have to depend on what equity markets will do short term. In the long term, share prices will rise (albeit in spurts).  Our best individual investing strategies should be centered around our individual beliefs and understanding of ourselves.  We each need to have an honest grip of how we individually feel and react to the spurts that equity markets will have.   We each need to choose a strategy that suits our personality and one that we can stick with.

Our individual strategy should reflect what we each want from our remaining years.

Personally at 70 I hope to have 30 years left (Mom’s 93 and still going strong so why not?) but whatever time I am graced with, I would like to spend as much of it in enjoyable pursuits.  Sitting in front of a monitor, watching and anticipating short term stock market moves and trading stocks is not one of the favored choices for me.

I hope this explanation of Pi’s core beliefs helped clarify the situation for the subscriber reader and helps you understand how Pi can assist you in reducing risk and increasing profits.

Gary

Investing Beyond the Boom

Warren Buffet once warned against the Cinderella effect.

He said “Don’t be fooled by that Cinderella feeling you get from great returns.  Nothing sedates rationality like large doses of effortless money.  After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball.  They know the party must end but nevertheless hate to miss a single minute of what is one helluva party.  Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.”

Cinderella may have lost a shoe when she fled the party to meet a midnight curfew.  We can lose much more when we rush from a crashing stock market.

Most investors face emotional dangers that build in rising markets.

Almost everyone feels good.

But the clock of economic reckoning is ticking.

No wants to see it.  Nothing rises forever and especially… not everything at the same time.

Yet no one wants to leave the party until the end.

But many edge closer to the door.

When the clock chimes there could be a stampede even though leaving in a hurry may be the worst way to go.

Here are seven steps that can help avoid this risk.

  • Choose investments based on markets instead of shares.
  • Diversify based on value.
  • Rely on financial information rather than economic news.
  • Keep investing simple.
  • Keep investing costs low.
  • Trade as little as possible.
  • Make the decision process during panics automatic.

One strategy is to invest in country ETFs that easily provide diversified, risk-controlled investments in countries with stock markets of good value.  These ETFs provide an easy, simple and effective approach to zeroing in on value.  Little management and less guesswork is required.  The expense ratios for most ETFs are lower than those of the average mutual funds.  Plus a single country ETF provides diversification equal to investing in dozens, even hundreds of shares.

A minimum of knowledge, time, management or guesswork are required.

The importance of…

easy…

transparent…

and inexpensive. 

Keeping investing simple is one of the most valuable, but least looked at, ways to avoid disaster.  Simple and easy investing saves time.  How much is your time worth?  Simple investing costs less and avoids fast decisions during stressful times in complex situations where we are most likely to get it wrong.

Fear, regret and greed are an investor’s chief problem.  Human nature causes  investors to sell winners too soon, and hold losers too long.

Easy to use, low cost, mathematically based habits and routines help protect against negative emotions and impulse investing.

Take control of your investing.  Make decisions based on data and discipline, not gut feelings.  The Purposeful investing Course (Pi) teaches math based, low cost ways to diversify in good value markets and in ETFs  that cover these markets.  This course is based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy Repeated Wealth With Pi

Pi’s mission is to make it easy for anyone to have a strategy and tactics that continually maintain safety and turn market turmoil into extra profit.

One secret is to invest with a purpose beyond the immediate returns.  This helps create faith in a strategy that adds stickiness to the plan.

Another tactic is to invest with enough staying power so you’re never caught short.

Never have to sell depressed assets during periods of loss.

Lessons from Pi are based on the creation and management of Model Portfolios, called Pifolios.

The success of Pifolios is based on ignoring economic news (often created by someone with vested interests) and using financial math that reveals deeper economic truths.

One Pifolio covers all the good value developed markets.  Another covers the emerging good value markets.

The Pifolio analysis begins with a continual research of 46 major stock markets that compares their value based on:

#1:  Current book to price

#2:  Cash flow to price

#3:  Earnings to price

#4:  Average dividend yield

#5:  Return on equity

#6:  Cash flow return.

#7:  Market history

This is a complete and continual study of almost all the developed major and emerging stock markets.

This mathematical analysis forms the basis of a Good Value Stock Market Strategy.   The analysis is rational, mathematical and does not worry about short term ups and downs.

This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

Learn how to invest like a pro from the inside out.

At the beginning of 2019 my personal Pifolio is based on select ETFs in the Keppler Developed and Emerging markets.  My Pifolio is invested in Country ETFs that cover seven developed and three emerging markets:

Norway
Australia
Hong Kong
Germany
Japan
Singapore
United Kingdom
Taiwan
South Korea
China

Don’t give up profit to gain ease and safety!

Regardless of economic news, these markets represent good value and have been chosen based on four pillars of valuation.

  • Absolute Valuation
  • Relative Valuation
  • Current versus Historic Valuation
  • Current Relative versus Relative Historic Valuation

When you subscribe to Pi, you immediately receive a 120 page basic training course that teaches the Pi Strategy.   You learn all the Pi strategies, what they are, how to use them and what each can do for you, your lifestyle and investing.

You also begin receiving regular emailed Pifiolio updates and online access to all the Pifolio updates of the last two years.  Each update examines the current activity in a Pifolio, how it is changing, why and how the changes might help your investing or not.

Included in the basic training is an additional 120 page PDF value analysis of 46 stock markets (23 developed markets and 23 emerging stock markets).  This analysis looks at the price to book, price to earnings, average yield and much more.

You also receive two special reports.

In the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.  The two conditions are in place again!

30 years ago, the US dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  The trends are so clear that I have created a short, but powerful report “Three Currency Patterns for 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but in this special offer, you receive the report, “Three Currency Patterns for 50% Profits or More” FREE when you subscribe to Pi.

Plus get the $39.95 report “The Silver Dip” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events over the last two years.  The price of silver dipped below $14 an ounce as did shares of the iShares Silver ETF (SLV).   The second event is that the silver gold ratio hit 80, compared to a ratio of 230 only two years before.

In September 2015, I prepared a special report “Silver Dip 2015” about a silver speculation, leveraged with a British pound loan, that could increase the returns in a safe portfolio by as much as eight times.  The tactics described in that report generated 62.48% profit in just nine months.

I have updated this report and added how to use the Silver Dip Strategy with platinum.   The “Silver Dip” report shares the latest in a series of long term lessons gained through 40 years of speculating and investing in precious metals.  I released the 2015 report, when the gold silver ratio slipped to 80.  The ratio has corrected and that profit has been taken and now a new precious metals dip has emerged.

I have prepared a new special report “Silver Dip” about a leveraged speculation that can increase the returns in a safe portfolio by as much as eight times.

You also learn from the Value Investing Seminar, our premier course, that we have been conducting for over 30 years.  Tens of thousands of delegates have paid up to $999 to attend.  Now you can join the seminar online FREE in this special offer.

This three day course is available in sessions that are 10 to 20 minutes long for easy, convenient learning.   You can listen to each session any time and as often as you desire.

The sooner you hear what I have to say about current markets, the better you’ll be able to cash in on perhaps the best investing opportunity since 1982.

seminars

Tens of thousands have paid up to $999 to attend.

This year I celebrated my 52nd anniversary of writing about global investing.  Our reports and seminars have helped readers have better lives, with less stress yet make fortunes during up and down markets for decades.  This information is invaluable to investors large and small because even small amounts can easily be invested in the good value shares we cover in our seminar.

Stock and currency markets are cyclical.  These cycles create extra profit for value investors who invest when everyone else has the markets wrong.  One special seminar session looks at how to spot value from cycles.  Stocks rise from the cycle of war, productivity and demographics.  Cycles create recurring profits.  Economies and stock markets cycle up and down around every 15 to 20 years as shown in this graph.

stock-Charts

The effect of war cycles on the US Stock Market since 1906.

Bull and bear cycles are based on cycles of human interaction, war, technology and productivity.  Economic downturns can create war.

The chart above shows the war – stock market cycle.  Military struggles (like the Civil War, WWI, WWII and the Cold War: WW III) super charge inventiveness that creates new forms of productivity…the steam engine, the internal combustion engine,  production line processes, jet engines, TV, farming techniques, plastics, telephone, computer and lastly during the Cold War, the internet.  The military technology shifts to domestic use.  A boom is created that leads to excess.  Excess leads to correction. Correction creates an economic downturn and again to war.

Details in the online seminar include:

* How to easily buy global currencies, shares and bonds.

* Trading down and the benefits of investing in real estate in Small Town USA.  We will share why this breakout value is special and why we have been recommending good value real estate in this area since 2009.

* What’s up with gold and silver?  One session looks at my current position on gold and silver and asset protection.  We review the state of the precious metal markets and potential problems ahead for US dollars.  Learn how low interest rates eliminate  opportunity costs of diversification in precious metals and foreign currencies.

* How to improve safety and increase profit with leverage and staying power.  The seminar reveals Warren Buffett’s value investing strategy from research published at Yale University’s website.  This research shows that the stocks Buffet chooses are safe (with low beta and low volatility), cheap (value stocks with low price-to-book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios). His big, extra profits come from leverage and staying power.  At times Buffet’s portfolio, as all value portfolios, has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

Use time not timing.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio, the better the odds of outstanding success.

A 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of out performance to 70%.  However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Learn how much leverage to use.  Leverage is like medicine, the key is dose.  The best ratio is normally 1.6 to 1.  We’ll sum up the strategy; how to leverage cheap, safe, quality stocks and for what period of time based on the times and each individual’s circumstances.

Learn to plan in a way so you never run out of money.  The seminar also has a session on the importance of having and sticking to a plan.  See how success is dependent on conviction, wherewithal, and skill to operate with leverage and significant risk.  Learn a three point strategy based on my 50 years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

The online seminar also reveals  the results of a $80,000 share purchase cost test that found the least expensive way to invest in good value.  The keys to this portfolio are good value, low cost, minimal fuss and bother.  Plus a great savings of time.  Trading is minimal, usually not more than one or two shares are bought or sold in a year.  I wanted to find the very least expensive way to create and hold this portfolio so I performed this test.

I have good news about the cost of the seminar as well.   For almost three decades the seminar fee has been $799 for one or $999 for a couple. Tens of thousands paid this price, but online the seminar is $297.

In this special offer, you can get this online seminar FREE when you subscribe to our Personal investing Course.

Save $468.90 If You Act Now

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive FREE the $29.95 report “Three Currency Patterns for 50% Profits or More”, the $39.95 report “Silver Dip” and our latest $297 online seminar for a total savings of $468.90.

ecuador-seminar

Triple Guarantee

Enroll in Pi.  Get the basic training, the 46 market value report, access to all the updates of the past two years, the two reports and the Value Investing Seminar right away. 

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free, easy diversified investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  You can keep the two reports and Value Investing Seminar as my thanks for trying.

You have nothing to lose except the fear.   You gain the ultimate form of financial security as you reduce risk and increase profit potential.

Subscribe to Pi now, get the 130 page basic training, the 120 page 46 market value analysis, access to over 100 previous Pifolio updates, the “Silver Dip” and “Three Currency Patterns For 50% Profits or More” reports, and value investment seminar, plus begin receiving regular Pifolio updates throughout the year.

Subscribe to a Pi annual subscription for $197 and receive all the above.

Your subscription will be charged $299 a year from now, but you can cancel at any time.

Gary

 

 

 

 

 

 

Mastery is the Most Precious Gift


 

Here are Unusual Factors of Success

Here are three unusual factors that can bring unusual success to anyone lucky enough to master their secrets.  Three legends reveal these factors. The factors are unusual because the three men could not seem more different yet each is (was) preeminent and almost incomparable in their individual field.

churchill

Their endeavors have been totally different, one religion, others business and politics.  That’s unusual because the differences in their lifestyles seem completely apart.  One went to bed about the time another was rising.   One eats McDonald’s hamburgers and sells Colas while another is a vegetarian.  One of these men is celibate and doesn’t drink alcohol or use tobacco.  Another was famous for smoking huge cigars and his prodigious consumption of alcohol every day.

Yet all three used the same three factors to become the legends they are.

We too can use these unusual factors to attain unusual success.

These men have all used the same three factors to achieve vitality and success.  These factors brought them longevity as well.  Churchill lived and remained a member of Parliament to age 89.  Warren Buffet is 85 and still going strong. The Dalai Lama at age 80 remains inspirational and fully engaged.

What unusual factors do the Dalai Lama, Winston Churchill and Warren Buffett have in common?   First, without question, they shared success. They have been absolute, unquestionable leaders in their fields.  What factors brought them this?

These three titans came from such different fields, yes.  They lived very different lifestyles, yes.   The three factors they shared are the same:

Factor #1: Focus.

Factor #2: Routine.

Factor #3: Commitment.

The one especially important factor they all shared is commitment to personal freedom.

The Buddhist teachings exemplified by the Dalai Lama are based on freedom of choice.

Winston Churchill left the army to pursue a career in writing and politics. He chose to be free of  discipline and authority, and wanted to be independent.  He said “With nobody to give me orders or arouse me by bell or trumpet.”  Yet he created an even more strict daily schedule than the army gave him, a routine that he delighted in because he created it himself.

Warren Buffett is considered one of the world’s most successful investors, yet money is not his main goal.  His journey is the reward.  The money is simply a vehicle that brings freedom to design the life he wants to live.

These three behemoths also share an important adherence to routine.  Their routines are incredibly varied but the common factor is their huge commitment to routine.

Buffett is a creature of habit and spends about 80% of everyday reading.  He doesn’t spend his day reading because he has to. He designed it that way.

Churchill had a a seemingly bizarre routine with days that began at 8 am.  After a bath and shave he jumped back in bed and read papers for a couple of hours with a whiskey soda and cigar.  Once the newspapers were read he answered mail, dictated memoranda and greeted any visitors he wanted to see.   Then he worked on speeches and books until a 1:15 lunch.  He enjoyed an unrushed sumptuous lunch.  After the mid-day meal Churchill walked to the pond on his property, fed the ducks and swans and began a period of uninterrupted thought and reflection before either painting, reading, or listening to music.  At 3 pm he took at two hour nap.  5 pm was time to spend a couple of hours with his family.  At 7 pm he took a second bath pondering future speeches and writings before sitting down to a big dinner at 8:30.  At 11:00 pm, Churchill began his second uninterrupted work period, writing usually until 2 am, sometimes even 3 or 4 am.

The Dalai Lama on the other hand wakes around 3 am.  After a morning shower, he begins the day with prayers and meditation until 5 am. At 5 am he walks until breakfast is served at 5.30 am.  During breakfast, the BBC World News is played.  From 6 am to 9 am there is more meditation and prayers. Then at 9 am he studies  Buddhist texts and commentaries written by great Buddhist masters.  Lunch is at 11.30 am.   Office work is from 12.30 pm until 3.30 pm, when typically, interviews are scheduled.  At 5 pm a light evening tea is served before evening prayers and meditation. The Dalai Lama does not eat dinner and retires around 7 pm.

The routines of these great men differ in many respects, but there are aspects of their activity that are common.  First, each routine is based around the person.  They each created a routine that works for them.  Second, each routine has time for plenty of reading.  Before these men act, they intake a great deal of information.  Third, each devotes a great deal of time to focused contemplation.

When Churchill sat at the pond, he preferred solitude.  He would dismiss his servant and sit alone with his reflections.  When Buffett reads, he’s in the zone, closes the windows and shuts off everything.  He focuses entirely on what he’s reading at that moment. The Dalai Lama meditates 4 hours a day.

The common thread that binds these factors and created their greatness is their commitment to mastery.  The routine, the reading, the meditation, contemplation and focus are all integrated to gain mastery over their chosen path.

This is why I want to introduce you to to “Mastery”, I coauthored with Bob Gandt.

“Mastery” shows how to use unusual factors to gain unusual success.

A huge part of the Western population has lost the sweet dream of freedom and expectation of a better life.  Getting ahead has become an empty promise.   Millions have resigned themselves to a slow, insidious erosion in their lifestyle.

Our book, “Mastery” shows how to use the three unusual factors to create a mission plan for reclaiming the Western Dream.

“Mastery” debunks the myths that age, ability and economic stability are limiting.  Mastery shows how, at any age, under any circumstance, you can dramatically improve your health, fitness and life style.

“Mastery” shares how to use the three unusual factors to attain mastery over specifics such as how to:

* Travel the  world with a new zest for adventure.

* Regain good natural health, overcome arthritis, memory loss.

* Launch a micro business.

* Write a book and see it published.

* Read 1000+words per minute and retain what you learn.

* Learn a new language.

* Learn to fly, meditate, juggle, cook, play a musical instrument.

* Restore vitality, build new muscle, run, race bikes.

*  Expand the fulfillment and meaning in every part of your life.

Here are four gifts you can give that will give forever.

mastery gandt

“Mastery”  prices at Amazon.com Kindle Unlimited  $0.00.  Kindle $4.99.  Paperback $13.99.

You can order these books at Amazon.com  Mastery by Bob Gandt and Gary Scott.  Click here.

How to Practice a Meaningful Life Dalai Lama $13.99

The Snowball: Warren Buffett and the Business of Life $13.99

The Last Lion: Winston Spencer Churchill: Defender of the Realm, 1940-1965 $19.99

 

Mastery is the Most Precious Gift


Here are Unusual Factors of Success

Here are three unusual factors that can bring unusual success to anyone lucky enough to master their secrets.  Three legends reveal these factors. The factors are unusual because the three men could not seem more different yet each is (was) preeminent and almost incomparable in their individual field.

churchill

Their endeavors have been totally different, one religion, others business and politics.  That’s unusual because the differences in their lifestyles seem completely apart.  One went to bed about the time another was rising.   One eats McDonald’s hamburgers and sells Colas while another is a vegetarian.  One of these men is celibate and doesn’t drink alcohol or use tobacco.  Another was famous for smoking huge cigars and his prodigious consumption of alcohol every day.

Yet all three used the same three factors to become the legends they are.

We too can use these unusual factors to attain unusual success.

These men have all used the same three factors to achieve vitality and success.  These factors brought them longevity as well.  Churchill lived and remained a member of Parliament to age 89.  Warren Buffet is 85 and still going strong. The Dalai Lama at age 80 remains inspirational and fully engaged.

What unusual factors do the Dalai Lama, Winston Churchill and Warren Buffett have in common?   First, without question, they shared success. They have been absolute, unquestionable leaders in their fields.  What factors brought them this?

These three titans came from such different fields, yes.  They lived very different lifestyles, yes.   The three factors they shared are the same:

Factor #1: Focus.

Factor #2: Routine.

Factor #3: Commitment.

The one especially important factor they all shared is commitment to personal freedom.

The Buddhist teachings exemplified by the Dalai Lama are based on freedom of choice.

Winston Churchill left the army to pursue a career in writing and politics. He chose to be free of  discipline and authority, and wanted to be independent.  He said “With nobody to give me orders or arouse me by bell or trumpet.”  Yet he created an even more strict daily schedule than the army gave him, a routine that he delighted in because he created it himself.

Warren Buffett is considered one of the world’s most successful investors, yet money is not his main goal.  His journey is the reward.  The money is simply a vehicle that brings freedom to design the life he wants to live.

These three behemoths also share an important adherence to routine.  Their routines are incredibly varied but the common factor is their huge commitment to routine.

Buffett is a creature of habit and spends about 80% of everyday reading.  He doesn’t spend his day reading because he has to. He designed it that way.

Churchill had a a seemingly bizarre routine with days that began at 8 am.  After a bath and shave he jumped back in bed and read papers for a couple of hours with a whiskey soda and cigar.  Once the newspapers were read he answered mail, dictated memoranda and greeted any visitors he wanted to see.   Then he worked on speeches and books until a 1:15 lunch.  He enjoyed an unrushed sumptuous lunch.  After the mid-day meal Churchill walked to the pond on his property, fed the ducks and swans and began a period of uninterrupted thought and reflection before either painting, reading, or listening to music.  At 3 pm he took at two hour nap.  5 pm was time to spend a couple of hours with his family.  At 7 pm he took a second bath pondering future speeches and writings before sitting down to a big dinner at 8:30.  At 11:00 pm, Churchill began his second uninterrupted work period, writing usually until 2 am, sometimes even 3 or 4 am.

The Dalai Lama on the other hand wakes around 3 am.  After a morning shower, he begins the day with prayers and meditation until 5 am. At 5 am he walks until breakfast is served at 5.30 am.  During breakfast, the BBC World News is played.  From 6 am to 9 am there is more meditation and prayers. Then at 9 am he studies  Buddhist texts and commentaries written by great Buddhist masters.  Lunch is at 11.30 am.   Office work is from 12.30 pm until 3.30 pm, when typically, interviews are scheduled.  At 5 pm a light evening tea is served before evening prayers and meditation. The Dalai Lama does not eat dinner and retires around 7 pm.

The routines of these great men differ in many respects, but there are aspects of their activity that are common.  First, each routine is based around the person.  They each created a routine that works for them.  Second, each routine has time for plenty of reading.  Before these men act, they intake a great deal of information.  Third, each devotes a great deal of time to focused contemplation.

When Churchill sat at the pond, he preferred solitude.  He would dismiss his servant and sit alone with his reflections.  When Buffett reads, he’s in the zone, closes the windows and shuts off everything.  He focuses entirely on what he’s reading at that moment. The Dalai Lama meditates 4 hours a day.

The common thread that binds these factors and created their greatness is their commitment to mastery.  The routine, the reading, the meditation, contemplation and focus are all integrated to gain mastery over their chosen path.

This is why I want to introduce you to to “Mastery”, I coauthored with Bob Gandt.

“Mastery” shows how to use unusual factors to gain unusual success.

A huge part of the Western population has lost the sweet dream of freedom and expectation of a better life.  Getting ahead has become an empty promise.   Millions have resigned themselves to a slow, insidious erosion in their lifestyle.

Our book, “Mastery” shows how to use the three unusual factors to create a mission plan for reclaiming the Western Dream.

“Mastery” debunks the myths that age, ability and economic stability are limiting.  Mastery shows how, at any age, under any circumstance, you can dramatically improve your health, fitness and life style.

“Mastery” shares how to use the three unusual factors to attain mastery over specifics such as how to:

* Travel the  world with a new zest for adventure.

* Regain good natural health, overcome arthritis, memory loss.

* Launch a micro business.

* Write a book and see it published.

* Read 1000+words per minute and retain what you learn.

* Learn a new language.

* Learn to fly, meditate, juggle, cook, play a musical instrument.

* Restore vitality, build new muscle, run, race bikes.

*  Expand the fulfillment and meaning in every part of your life.

Here are four gifts you can give that will give forever.

mastery gandt

“Mastery”  prices at Amazon.com Kindle Unlimited  $0.00.  Kindle $4.99.  Paperback $13.99.

You can order these books at Amazon.com  Mastery by Bob Gandt and Gary Scott.  Click here.

How to Practice a Meaningful Life Dalai Lama $13.99

The Snowball: Warren Buffett and the Business of Life $13.99

The Last Lion: Winston Spencer Churchill: Defender of the Realm, 1940-1965 $19.99

 

4 Unusual Gifts That Creates Unusual Success


Here are three unusual factors that can bring you unusual success.  Three legends reveal these factors. They are Winston Churchill, Warren Buffett and the Dalai lama.

churchill

The factors are unusual because the three men could not seem more different yet each is (was) preeminent and almost incomparable in their individual field.

Their endeavors have been totally different, one religion, others business and politics.  That’s unusual because the differences in their lifestyles seem completely apart.  One went to bed about the time another was rising.   One eats McDonald’s hamburgers and sells Colas while another is a vegetarian.  One of these men is celibate and doesn’t drink alcohol or use tobacco.  Another was famous for smoking huge cigars and his prodigious consumption of alcohol every day.

Yet all three used the same three factors to become the legends they are.   We too can use these unusual factors to attain unusual success.

These men have all used the same three factors to achieve vitality and success.  These factors brought them longevity as well.  Churchill lived and remained a member of Parliament to age 89.  Warren Buffet is 85 and still going strong. The Dalai Lama at age 80 remains inspirational and fully engaged.

What unusual factors do the Dalai Lama, Winston Churchill and Warren Buffett have in common?   First, without question, they shared success. They have been absolute, unquestionable leaders in their fields.  What factors brought them this?

These three titans came from such different fields, yes.  They lived very different lifestyles, yes.   The three factors they shared are the same:

Factor #1: Focus.

Factor #2: Routine.

Factor #3: Commitment.

The one especially important factor they all shared is commitment to personal freedom.

The Buddhist teachings exemplified by the Dalai Lama are based on freedom of choice.

Winston Churchill left the army to pursue a career in writing and politics. He chose to be free of  discipline and authority, and wanted to be independent.  He said “With nobody to give me orders or arouse me by bell or trumpet.”  Yet he created an even more strict daily schedule than the army gave him, a routine that he delighted in because he created it himself.

Warren Buffett is considered one of the world’s most successful investors, yet money is not his main goal.  His journey is the reward.  The money is simply a vehicle that brings freedom to design the life he wants to live.

These three behemoths also share an important adherence to routine.  Their routines are incredibly varied but the common factor is their huge commitment to routine.

Buffett is a creature of habit and spends about 80% of everyday reading.  He doesn’t spend his day reading because he has to. He designed it that way.

Churchill had a a seemingly bizarre routine with days that began at 8 am.  After a bath and shave he jumped back in bed and read papers for a couple of hours with a whiskey soda and cigar.  Once the newspapers were read he answered mail, dictated memoranda and greeted any visitors he wanted to see.   Then he worked on speeches and books until a 1:15 lunch.  He enjoyed an unrushed sumptuous lunch.  After the mid-day meal Churchill walked to the pond on his property, fed the ducks and swans and began a period of uninterrupted thought and reflection before either painting, reading, or listening to music.  At 3 pm he took at two hour nap.  5 pm was time to spend a couple of hours with his family.  At 7 pm he took a second bath pondering future speeches and writings before sitting down to a big dinner at 8:30.  At 11:00 pm, Churchill began his second uninterrupted work period, writing usually until 2 am, sometimes even 3 or 4 am.

The Dalai Lama on the other hand wakes around 3 am.  After a morning shower, he begins the day with prayers and meditation until 5 am. At 5 am he walks until breakfast is served at 5.30 am.  During breakfast, the BBC World News is played.  From 6 am to 9 am there is more meditation and prayers. Then at 9 am he studies  Buddhist texts and commentaries written by great Buddhist masters.  Lunch is at 11.30 am.   Office work is from 12.30 pm until 3.30 pm, when typically, interviews are scheduled.  At 5 pm a light evening tea is served before evening prayers and meditation. The Dalai Lama does not eat dinner and retires around 7 pm.

The routines of these great men differ in many respects, but there are aspects of their activity that are common.  First, each routine is based around the person.  They each created a routine that works for them.  Second, each routine has time for plenty of reading.  Before these men act, they intake a great deal of information.  Third, each devotes a great deal of time to focused contemplation.

When Churchill sat at the pond, he preferred solitude.  He would dismiss his servant and sit alone with his reflections.  When Buffett reads, he’s in the zone, closes the windows and shuts off everything.  He focuses entirely on what he’s reading at that moment. The Dalai Lama meditates 4 hours a day.

The common thread that binds these factors and created their greatness is their commitment to mastery.  The routine, the reading, the meditation, contemplation and focus are all integrated to gain mastery over their chosen path.

This is why I want to introduce you to to “Mastery”, I coauthored with Bob Gandt.

“Mastery” shows how to use unusual factors to gain unusual success.

A huge part of the Western population has lost the sweet dream of freedom and expectation of a better life.  Getting ahead has become an empty promise.   Millions have resigned themselves to a slow, insidious erosion in their lifestyle.

Our book, “Mastery” shows how to use the three unusual factors to create a mission plan for reclaiming the Western Dream.

“Mastery” debunks the myths that age, ability and economic stability are limiting.  Mastery shows how, at any age, under any circumstance, you can dramatically improve your health, fitness and life style.

“Mastery” shares how to use the three unusual factors to attain mastery over specifics such as how to:

* Travel the  world with a new zest for adventure.

* Regain good natural health, overcome arthritis, memory loss.

* Launch a micro business.

* Write a book and see it published.

* Read 1000+words per minute and retain what you learn.

* Learn a new language.

* Learn to fly, meditate, juggle, cook, play a musical instrument.

* Restore vitality, build new muscle, run, race bikes.

*  Expand the fulfillment and meaning in every part of your life.

I urge you to read Mastery and the other books below now.

mastery gandt

“Mastery”  prices at Amazon.com Kindle Unlimited  $0.00.  Kindle $4.99.  Paperback $13.99.

Order Mastery at Amazon.com.  Click here.

Here are other valuable books that can help learn how to make your life better using the three unusual factors.

mastery gant

Kindle $13.99  Paperback $9.27

How to Practice a Meaningful Life Dalai Lama

snowball buffett

Kindle $13.99  Paperback $12.35

The Snowball: Warren Buffett and the Business of Life

the last lion

Kindle $19.99 Paperback $12.19

The Last Lion: Winston Spencer Churchill: Defender of the Realm, 1940-1965

You can order these books at Amazon.com

“Mastery’ by Bob Gandt and Gary Scott $4.99 (kindle)

How to Practice a Meaningful Life Dalai Lama $13.99

The Snowball: Warren Buffett and the Business of Life $13.99

The Last Lion: Winston Spencer Churchill: Defender of the Realm, 1940-1965 $19.99

 

Spooky Thought on Health & Wealth


Here is a thought that is so spooky it would be funny if the problem were not so serious.

Last week’s message Ecuador Shamanic Pumpkin Health Tip looked at how Ecuador shamans use pumpkins to help improve health.  Then the post shared ayurvedic nutritional ideas on why we should eat pumpkin during the autumn and winter.

Beware

Beware or not?  See how to get free Beware Pumpkin stencils (1)

The next day a friend who has great experience in ayurved wrote:  Gary, when the Europeans came to N. America originally they found many of the natives suffering from severe psoriasis. The natives had many remedies for this most of which involved tar in some way or another.  Pumpkins and winter squashes in general are said in Ayurveda to be the source of most of the serious skin diseases people suffer from and one of the ways to remedy those skin diseases is simply to stop eating them. We don’t have them in our diet at all and haven’t had for 15 years.

When I pointed out that winter squashes and pumpkin were recommended for winter eating by an ayurvedic physician who has been very helpful to Merri and me over the past 20 years, our friend replied:  That Doctor’s learning is from the books and not from a family tradition.  The simple fact remains, the winter squashes, and pumpkin in particular, produce skin disease.

I did not bother to point out that the Ecuador shaman we worked with, who definitely used pumpkins in his nutritional plan was also a healer of many generations.  His father and grandfather, etc.  were great healers as well and this yatchak had been taken at age five and apprenticed to other great healers up and down North, Central and South America.

Needless to say this message is not about pumpkins, its about the dangers of trying to process overwhelming amounts of data.

Getting too much input can be worse than not having enough.

The Natural Health Crunch

Expanded horizons should bring expanded ability and wisdom.  Wouldn’t you think?  Yet it is known that a foible of the human mind is its reluctance to make too many decisions.   A choice of two chocolates in a box is better than one. Six choices better than two.  When there are more than six or seven choices the satisfaction of the chocolate decision grows less rather than more.  Confusion overcomes options.

The mental juggling is even worse if you like all of the chocolate choices given.

So too with the process of natural health.  Believe strongly in one proven health system, use it and you’ll have good natural health.  In fact there is evidence that the faith in a natural health system is as important as the system itself.

Knowing two systems can confuse and create doubt in both systems.  Know three disciplines and the confusion can grow exponentially.

Anita Moorjani, best selling author, explains this problem in her book “Dying To Be Me“.

After fighting cancer for almost four years, the cancer in her body was at stage 4B (throughout her body).  Her weight was down to 90 pounds.  Overwhelmed by malignant cells, her organs began shutting down.  In a coma, she entered into an extraordinary near-death experience where she realized her inherent worth . . . and the actual cause of her disease. Upon regaining consciousness, Anita found that her condition had improved so rapidly that she was able to be released from the hospital within weeks . . . without a trace of cancer in her body though medical doctors with experience in this field said, “Whichever way I look at it, you should be dead!”

The book tells how she was raised in Hong Kong by her Indian parents, cared for by a Cantonese nanny and given a British education. She is multilingual speaking English, Cantonese, and an Indian dialect.  Yet when diagnosed with cancer in April 2002 she returned to her Indian roots and after six months of living a pure ayurvedic life with a guru, she felt cured.

Upon returning to Hong Kong she began suffering death by doubt as exposure to multi cultural health sciences, that all worked differently, eroded the belief in her cure and confused her health.

Moorjani wrote: When I returned home to Hong Kong at first many people remarked on how well I looked.  I certainly felt better than I had, both physically and emotionally, but my jubilation was short lived. It wasn’t long before others wanted to know what I had been doing for so long in India and how I’d healed.

When I told them about my ayurvedic regimen, however, I received mainly fear-based and negative responses. These were well meaning people who genuinely cared about me and my well-being, and they were skeptical about my choices, which is why they had such a great impact on me. Most believed that cancer couldn’t be treated in that way, and I slowly felt the doubts and fear creeping back into my psyche as I defended my position.

I attempted to understand Traditional Chinese Medicine (TCM), since it’s commonly practiced here. However because it conflicted so much with my Ayurveda, I was left feeling very confused.

To make matters worse, I turned to Western naturopathy for help because I was so bewildered.  This not only added to the confusion, but also increased my fears. I was getting conflicting information from every discipline.

So I became very stressed about food and was afraid of eating almost anything. I didn’t know what was good for me and what wasn’t, because each system of healing espoused a different truth ad they all conflicted with one another. This confusion only added to my already overwhelming ears. And as the terror tightly griped me in its vice once more, I watched helplessly as my health rapidly deteriorated.

Confusion can ruin investing as well.

Too much input about markets, stock, economies and all the bad news that floods the daily media is overwhelming.   We each need a simple strategy that we understand and that we stick to.

The book Too Big to Fail by Andrew Sorkin explains how Warren Buffett  does not research by maintaining a database of up-to-the-quarter estimates, etc.   So much data would dilute and distract from the deep focus on the areas he does research.

Buffet’s research is  from reading publicly available documentation, introductions from trusted lieutenants, and personally meeting the leaders of his investment prospects.  Buffett keeps it simple and understandable to him.

Too big to fail

Order Too Big to Fail at Amazon.com

Whether you are thinking about pumpkins, investments or Presidential candidates (now that’s a real spooky thought!), limit your input to what you understand, what you are passionate about and what makes you feel good.  If the 11 oclock news leaves you feeling sleepless, don’t turn it on.  Tonight its okay to be spooky, but there is no reason to get spooked every night.

Gary

Gain From Pandemics – Riots & Election Volatility

On top of the pandemic… and the riots, another election on its way… all the robo calls from politicians… the dirty tricks and the innumerable amounts of nonsense this vital process brings.

However America’s politics turn out, one thing is sure, there will be volatility in stock markets during the election process.

The first reason markets will bounce has nothing to do with politics or policies.   A market correction was due regardless of the party or the person in office and COVID-19 was a pretty good excuse for it to suddenly drop.  Expect plenty more volatility.  Whether the economy recovers slowly or quickly, history suggests that the US market will do a lot of moving up and down.

Second the new politics has created an uncertain era.  Everyone has been shaken over the past three years whether they are pleased with the government or not.

Nothing frightens markets like uncertainty. 

What more could we ask for… an uncertain COVID-19 future and riots in 30 major cities.

Well interest rates could be a dark horse.  I the massive government handouts create inflation, interest rates will rise and rising interest rates will push stock market prices down.

Despite these pitfalls, there is a way to profit using the strong US dollar and undervalued non dollar stock markets to pick up good value shares.

During nearly five decades of global investing I have noticed found that good value strategies are the best way to profit long term, through good politics and bad.  The steps to take are simple.

The first tactic is to seek safety before profit.

We can look at Warren Buffett’s investing strategy as an example.  Buffett success is talked about a lot, but rarely does anyone explain how he make so much money.  That was the fact until some researchers really stripped his operation bare.  They looked at everything and learned the deepest of Buffett’s wealth management secrets.  Fortunately they published all in a research paper at Yale University’s website. that reveals important truths about extending wealth.

This research shows that the stocks Buffett chooses are safe (with low beta and low volatility), cheap (value stocks with low price – to – book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios).

The second tactic is to maintain staying power.  At times Buffet’s portfolio has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

A 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of outperformance to 70%.

However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio the better the odds of outstanding success.

The Buffett strategy integrates time and value for safety and profit.

A third tactic is using limited leveraging, tactic in the strategy boosts profit.  Buffett leverages his portfolio at a ratio of approximately 1.6 to 1.   The Yale published research paper shows the leveraging methods used by Warren Buffett to amass his $50 billion fortune.  The researchers found that the returns from Buffett’s investment company, Berkshire Hathaway, far outweighed those achieved by any rival that has operated for 30 years or more.  The research shows that neither luck nor magic are involved.  Instead, the paper shows that Buffet’s success hinges on using leverage at the rate of 1.6.

To sum up the strategy, Buffet uses limited leverage to invest in large purchases of “cheap, safe, quality stocks”.  He limits leverage so he can hold on for very long periods of time, surviving rough periods where others might have been forced into a fire sale or a career shift.

Stated in another way buffet uses logic (buy good value) to have the conviction, wherewithal, and skill to invest with leverage over many decades.

What do we do when we are not Warren Buffett?

May I introduce the Purposeful Investing Course (Pi) for those who want to invest like Warren Buffet, but know they are not.  This course is based on my 50 plus years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy Extending Wealth

Pi’s mission is to make it easy for anyone to create a three point strategy, like Buffett’s even though they do not have a lot of time for or knowledge about investing.

Pi reveals investing secrets and the sciences that make investing easy, safer, less time consuming and increases the chances of profit.

One secret is to invest with a purpose beyond the cash.  One tactic as mentioned is staying power.  This means not being caught short and having to sell during a period of loss.  This also means having enough faith in a strategy that we stick to the plan.  When we invest with purpose, doing what we love, we enjoy the process more and are more likely to hold on during down times, when most poor investors panic and sell.

Slow, Worry Free, Good Value Investing

Stress, worry and fear are three of an investor’s worst enemies.  They create the Behavior Gap, a trait exhibited by most investors, that causes them to underperform any market sector they choose.  The behavior gap is created by natural human responses to fear.   Pi helps create profitable strategies that avoid losses from this gap.

Spanning the Behavior Gap

Behavior gaps are among the biggest reasons why so many investors fail.  Human evolution makes fear the second most powerful motivator.  (Greed is the third.)  Fear creates investment losses due to behavior gaps.  Fear motivates us more strongly than desire.  By nature investors are risk adverse.

Winning investors though embrace risk because they have a plan based on good value.

Purpose is the most powerful motivator,  stronger than fear and greed, so a strategy with purpose is the most powerful of all.

Combine your needs and capabilities with good value secrets and the math to back up your value selections through the Pifolio – The Pi Model Portfolio

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories (often created by someone with vested interests) and is based entirely on good math.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my (almost) 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2: Cash flow to price

#3: Earnings to price

#4: Average dividend yield

#5: Return on equity

#6: Cash flow return.

#7: Market history

We follow this research of a brilliant mathematician and have tracked this analysis for over 20 years.    This is a complete and continual study of international major and emerging stock markets.

This analysis forms the basis of a Good Value Stock Market Strategy.   The analysis is rational, mathematical and does not worry about short term ups and downs.   This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

A country ETF provides diversification and cost efficiency by spreading one simple, even small investment into a basket of equities in a good value stock market.  The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.

Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi matches this mathematical certainty with my fifty years of experience. This opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

For example in the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.

The two conditions are in place again!  There are currently ten good value (non US) developed markets,  plus 10 good value emerging markets.

Pi shows how to easily create a diversified, worry free portfolio in some of these good value markets using Country Index ETFs.

The current strength of the US dollar is a second remarkable similarity to 30 years ago.   The dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  There is so much more to write and the trends are so clear that I have created a short, but powerful report “Three Currency Patterns For 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but you’ll receive the report “Three Currency Patterns For 50% Profits or More” FREE when you subscribe to Pi.

Leverage

Pi also explains when leverage provides extra potential without undo risk.  For example in 1986 I issued a report called “The Silver Dip” that showed how to borrow 12,000 British pounds (at almost 1.6 to 1 dollars per pound the loan created US$18,600) and use the loan to buy 3835 ounces of silver at around US$4.85 an ounce.

Silver had crashed, I mean really crashed from $48 per ounce.  As prices decreased from early 1983 into 1986, total supply had fallen to 449.7 million ounces in 1986.  Mine production was restricted by the low prices at this time, with silver reaching a low for this period of $4.85 in May 1986.  Secondary recovery also was constricted by these low prices.

Then silver’s price skyrocketed to over $11 an ounce within a year.  The $18,600 loan was now worth $42,185.

The loan was in pounds and in May 1986 the dollar pound rate was 1.55 dollars per pound.  So the 12,000 pound loan purchased $18,600 of silver.  The pound then crashed to 1.40 dollars per silver.  The loan could be paid off for $13,285 immediately creating an extra $5,314 profit.  The profit grew to $47,499 in just a year.

Conditions for the silver dip have returned.  The availability of low cost loans and silver are at an all time low.  The price of silver has crashed from nearly $50 an ounce to below $14 as did shares of the iShares Silver ETF (SLV).

Now the SLV price is taking off!

silver slv

iShares Silver Trust (symbol SLV) from www.finance.yahoo.com

Imagine investing in a spike like this… with leverage!

At the same time the silver gold ratio has sot well past 80, a strong sign to invest in precious metals.

I have updated a special report “Silver Dip 2019” about a leveraged silver speculation that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons gained through 30 years of speculating and investing in precious metals.  While working on the report, when the gold silver ratio slipped to 80 and the price of silver dropped below $14 an ounce, I knew I needed to share this immediately.

I released a new report “Silver Dip 2015” so readers were able to take advantage of these conditions and leverage 1.6 times as a speculation.  That report generated profits as high as 212% and a revised 2019 issue has been produced.

“The Silver Dip 2109”  sells for $39.95 but  you receive  “Silver Dip 2019” FREE when you subscribe to Pi.

Save

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive the $29.95 report “Three Currency Patterns For 50% Profits or More” and the $39.95 report “The Silver Dip 2019” free.

Triple Guarantee

Enroll in Pi.   Get the first monthly issue of Pi, and the report “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2019” right away.

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free purposeful investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  I guarantee you can keep “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2109” report as my thanks for trying.

You have nothing to lose except the fear.   You have the ultimate form of financial security to gain.

Subscribe to the Pi for $197.   You Save $158.95.

Your subscription will be charged $299 a year from now, but you can cancel at any time.

Gary

 

 

 

(1) Get free pumpkin stencils

How to Keep It Simple


Keeping it simple probably meant something different to Albert Einstein than it does to you and me.  Keeping it simple means keeping it understandable and fun!

The way to start Purposeful investing is to decide exactly what you are passionate about and that leaves you fulfilled.

To understand how to keep it simple in investing, let’s look at the book , “Too Big to Fail” by Andrew Ross Sorkin.  This  provides a  snapshot of how Buffett conducts his research and keeps his decision making process really simple.

Warren Buffett only invests in shares of businesses whose products he understands.  This means he has avoided esoteric finance and technology.  Ice cream, soft drinks, insurance and railroads he understands.

When he contemplates an investment, he first reads the business’ 10-K (an annual report that gives a summary of a company’s financial performance).  Every time he reads something he didn’t understand, or has a concern about, he makes a quick note on the front cover.

When he’s finished reading, if his front cover is full of markups, he’ll be leaning against investing in the share.

Turn your passion into profit.  Invest in what you understand.  Purposeful, good value investing begins with passion, something fun and fulfilling that can also be worry free and profitable.  Following a routine of this type can help create investing missions that help you profit as you achieve fulfillment of your purpose.

Too big to fail

Order Too Big to Fail at Amazon.com

Gary

Gain From Pandemics – Riots & Election Volatility

On top of the pandemic… and the riots, another election on its way… all the robo calls from politicians… the dirty tricks and the innumerable amounts of nonsense this vital process brings.

However America’s politics turn out, one thing is sure, there will be volatility in stock markets during the election process.

The first reason markets will bounce has nothing to do with politics or policies.   A market correction was due regardless of the party or the person in office and COVID-19 was a pretty good excuse for it to suddenly drop.  Expect plenty more volatility.  Whether the economy recovers slowly or quickly, history suggests that the US market will do a lot of moving up and down.

Second the new politics has created an uncertain era.  Everyone has been shaken over the past three years whether they are pleased with the government or not.

Nothing frightens markets like uncertainty. 

What more could we ask for… an uncertain COVID-19 future and riots in 30 major cities.

Well interest rates could be a dark horse.  I the massive government handouts create inflation, interest rates will rise and rising interest rates will push stock market prices down.

Despite these pitfalls, there is a way to profit using the strong US dollar and undervalued non dollar stock markets to pick up good value shares.

During nearly five decades of global investing I have noticed found that good value strategies are the best way to profit long term, through good politics and bad.  The steps to take are simple.

The first tactic is to seek safety before profit.

We can look at Warren Buffett’s investing strategy as an example.  Buffett success is talked about a lot, but rarely does anyone explain how he make so much money.  That was the fact until some researchers really stripped his operation bare.  They looked at everything and learned the deepest of Buffett’s wealth management secrets.  Fortunately they published all in a research paper at Yale University’s website. that reveals important truths about extending wealth.

This research shows that the stocks Buffett chooses are safe (with low beta and low volatility), cheap (value stocks with low price – to – book ratios), and high quality (stocks of companies that are profitable, stable, growing, and with high payout ratios).

The second tactic is to maintain staying power.  At times Buffet’s portfolio has fallen, but he has been willing and able to wait long periods for the value to reveal itself and prices to recover.

A 45 year portfolio study shows that holding a diversified good value portfolio (based on a  good value strategy) for 13 month’s time, increases the probability of outperformance to 70%.

However those who can hold the portfolio for five years gain a 88% probability of beating the bellwether in the market and after ten years the probability increases to 97.5%.

Time is your friend when you use a good value strategy.  The longer you can hold onto a well balanced good value portfolio the better the odds of outstanding success.

The Buffett strategy integrates time and value for safety and profit.

A third tactic is using limited leveraging, tactic in the strategy boosts profit.  Buffett leverages his portfolio at a ratio of approximately 1.6 to 1.   The Yale published research paper shows the leveraging methods used by Warren Buffett to amass his $50 billion fortune.  The researchers found that the returns from Buffett’s investment company, Berkshire Hathaway, far outweighed those achieved by any rival that has operated for 30 years or more.  The research shows that neither luck nor magic are involved.  Instead, the paper shows that Buffet’s success hinges on using leverage at the rate of 1.6.

To sum up the strategy, Buffet uses limited leverage to invest in large purchases of “cheap, safe, quality stocks”.  He limits leverage so he can hold on for very long periods of time, surviving rough periods where others might have been forced into a fire sale or a career shift.

Stated in another way buffet uses logic (buy good value) to have the conviction, wherewithal, and skill to invest with leverage over many decades.

What do we do when we are not Warren Buffett?

May I introduce the Purposeful Investing Course (Pi) for those who want to invest like Warren Buffet, but know they are not.  This course is based on my 50 plus years of investing experience combined with wisdom gained from some of the world’s best investment managers and economic mathematical scientists.

Enjoy Extending Wealth

Pi’s mission is to make it easy for anyone to create a three point strategy, like Buffett’s even though they do not have a lot of time for or knowledge about investing.

Pi reveals investing secrets and the sciences that make investing easy, safer, less time consuming and increases the chances of profit.

One secret is to invest with a purpose beyond the cash.  One tactic as mentioned is staying power.  This means not being caught short and having to sell during a period of loss.  This also means having enough faith in a strategy that we stick to the plan.  When we invest with purpose, doing what we love, we enjoy the process more and are more likely to hold on during down times, when most poor investors panic and sell.

Slow, Worry Free, Good Value Investing

Stress, worry and fear are three of an investor’s worst enemies.  They create the Behavior Gap, a trait exhibited by most investors, that causes them to underperform any market sector they choose.  The behavior gap is created by natural human responses to fear.   Pi helps create profitable strategies that avoid losses from this gap.

Spanning the Behavior Gap

Behavior gaps are among the biggest reasons why so many investors fail.  Human evolution makes fear the second most powerful motivator.  (Greed is the third.)  Fear creates investment losses due to behavior gaps.  Fear motivates us more strongly than desire.  By nature investors are risk adverse.

Winning investors though embrace risk because they have a plan based on good value.

Purpose is the most powerful motivator,  stronger than fear and greed, so a strategy with purpose is the most powerful of all.

Combine your needs and capabilities with good value secrets and the math to back up your value selections through the Pifolio – The Pi Model Portfolio

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories (often created by someone with vested interests) and is based entirely on good math.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my (almost) 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2: Cash flow to price

#3: Earnings to price

#4: Average dividend yield

#5: Return on equity

#6: Cash flow return.

#7: Market history

We follow this research of a brilliant mathematician and have tracked this analysis for over 20 years.    This is a complete and continual study of international major and emerging stock markets.

This analysis forms the basis of a Good Value Stock Market Strategy.   The analysis is rational, mathematical and does not worry about short term ups and downs.   This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

A country ETF provides diversification and cost efficiency by spreading one simple, even small investment into a basket of equities in a good value stock market.  The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.

Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi matches this mathematical certainty with my fifty years of experience. This opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

For example in the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

I did well then, but always thought, “I should have invested more!”  Now those circumstances have come together and I am investing in them again.

The circumstances that created fortunes 30 years ago were an overvalued US market (compared to global markets) and an overvalued US dollar.

The two conditions are in place again!  There are currently ten good value (non US) developed markets,  plus 10 good value emerging markets.

Pi shows how to easily create a diversified, worry free portfolio in some of these good value markets using Country Index ETFs.

The current strength of the US dollar is a second remarkable similarity to 30 years ago.   The dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  There is so much more to write and the trends are so clear that I have created a short, but powerful report “Three Currency Patterns For 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but you’ll receive the report “Three Currency Patterns For 50% Profits or More” FREE when you subscribe to Pi.

Leverage

Pi also explains when leverage provides extra potential without undo risk.  For example in 1986 I issued a report called “The Silver Dip” that showed how to borrow 12,000 British pounds (at almost 1.6 to 1 dollars per pound the loan created US$18,600) and use the loan to buy 3835 ounces of silver at around US$4.85 an ounce.

Silver had crashed, I mean really crashed from $48 per ounce.  As prices decreased from early 1983 into 1986, total supply had fallen to 449.7 million ounces in 1986.  Mine production was restricted by the low prices at this time, with silver reaching a low for this period of $4.85 in May 1986.  Secondary recovery also was constricted by these low prices.

Then silver’s price skyrocketed to over $11 an ounce within a year.  The $18,600 loan was now worth $42,185.

The loan was in pounds and in May 1986 the dollar pound rate was 1.55 dollars per pound.  So the 12,000 pound loan purchased $18,600 of silver.  The pound then crashed to 1.40 dollars per silver.  The loan could be paid off for $13,285 immediately creating an extra $5,314 profit.  The profit grew to $47,499 in just a year.

Conditions for the silver dip have returned.  The availability of low cost loans and silver are at an all time low.  The price of silver has crashed from nearly $50 an ounce to below $14 as did shares of the iShares Silver ETF (SLV).

Now the SLV price is taking off!

silver slv

iShares Silver Trust (symbol SLV) from www.finance.yahoo.com

Imagine investing in a spike like this… with leverage!

At the same time the silver gold ratio has sot well past 80, a strong sign to invest in precious metals.

I have updated a special report “Silver Dip 2019” about a leveraged silver speculation that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons gained through 30 years of speculating and investing in precious metals.  While working on the report, when the gold silver ratio slipped to 80 and the price of silver dropped below $14 an ounce, I knew I needed to share this immediately.

I released a new report “Silver Dip 2015” so readers were able to take advantage of these conditions and leverage 1.6 times as a speculation.  That report generated profits as high as 212% and a revised 2019 issue has been produced.

“The Silver Dip 2109”  sells for $39.95 but  you receive  “Silver Dip 2019” FREE when you subscribe to Pi.

Save

Subscribe to the first year of The Personal investing Course (Pi).  The annual fee is $299, but to introduce you to this online, course that is based on real time investing, I am knocking $102 off the subscription.  Plus you receive the $29.95 report “Three Currency Patterns For 50% Profits or More” and the $39.95 report “The Silver Dip 2019” free.

Triple Guarantee

Enroll in Pi.   Get the first monthly issue of Pi, and the report “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2019” right away.

#1:  I guarantee you’ll learn ideas about investing that are unique and can reduce stress as they help you enhance your profits through slow, worry free purposeful investing.

If you are not totally happy, simply let me know.

#2:  I guarantee you can cancel your subscription within 60 days and I’ll refund your subscription fee in full, no questions asked.

#3:  I guarantee you can keep “Three Currency Patterns For 50% Profits or More” and “The Silver Dip 2109” report as my thanks for trying.

You have nothing to lose except the fear.   You have the ultimate form of financial security to gain.

Subscribe to the Pi for $197.   You Save $158.95.

Your subscription will be charged $299 a year from now, but you can cancel at any time.

Gary

 

 

 

Golden Rule of Investing #12


One Golden Rule of Investing is “Continually look for restructuring stories to improve your portfolio”.   This process begins with being open to all sources of information.  This is an excerpt from a lesson in our course Purposeful investing (Pi).

Restructuring requires a continual willingness to shift mind-sets.  Here is a true story from the 1970s that shows what happens when we allow our research to become too rigid.

I was living in Hong Kong and had a series of business meetings in London.  I had lived in London for a year so thought I knew where I was, where to go and how to travel most efficiently though the city.

The meetings were at the five star Churchill Hotel but I was on a tight budget and stayed at a lower cost hostel, near the Sherlock Holmes Hotel on Baker Street.  On arrival, I checked out a map of the Underground.  I knew the train was the fastest and yet quite inexpensive way to get from place to place.  Based on this assumption I limited my research and ignored travel by bus or taxi.

london map

Underground Map. Click on image to enlarge

The trip was a little complicated, but I figured it out.  I walked from the hotel to the Bakerloo Line.  There I boarded the train for two stops to Oxford Circus where I disembarked and waited for a Central Line train to Marble Arch.  I got off at Marble Arch and walked to the Churchill Hotel.  The journey took about 45 minutes and was most miserable in two ways.  First, the Tube was always cram packed in the mornings and afternoons.  Even 40 years ago, London’s underground rail system was busy during those rush times.

Second, there was quite a walk at each end of the trip.   This left me drenched since it was raining every day.

Yet I soldiered on.  My research showed that I was using the fastest route the underground provided.

At the end of the last day of meetings  I faced a huge downpour.   I would have had to nearly swim back to the tube station, so instead under the dry portico of the Churchill I hailed a cab.  No matter the cost, I decided to arrive back at my hotel without being soaked.

I gave the driver the address and he turned, looked at me and asked “Are you sure mate?”  I, thinking this was a long, expensive ride, sucked in my breath and said “Yep”.

The driver turned left, accelerated a bit for about one minute and stopped.  We were there!  The fare was the minimum, as I recall, just a few schillings.  This was not much more than the train fare, about 44 minutes faster and dry all the way.

Back in my room, I pulled out my A to Z map and discovered that my hotel was about five minutes walk to the Churchill!

London map

Map showing Baker Street to Churchill Hotel.

I  had been so sure that the train was the least expensive way to travel in London that I limited my research to finding the best train route.  I did not even look at alternatives.  My closed mind cost me time, money and comfort.  I paid too much attention to the tiny details and so doing missed the big picture.

Getting a bird’s eye view is a complete view seeing both the broad horizons as well as the narrow perspective.

Let’s don’t get too caught up trying to see the trees and miss the forest.  Otherwise we may miss some of our best investment opportunities as times and situations change.

Here are ideas on seeing the pictures big and small based on the life of the ultimate value investor, Warren Buffet, on how to be a Purposeful Investor who continually finds new alternatives in a routine way.

Warren Buffet is a creature of habit, and spends about 80% of his day – everyday – reading.   This gives him ammunition to continually think about the things that are most important to him and his business.  He spends this time getting input, not giving output as he does not spend much time in meetings.

There is a story that when Buffett first met Bill Gates, he penned in a time to meet with Gates and talk.  What impressed Gates was the emptiness of Buffet’s datebook.

Buffet spends most of his day reading because this is what he likes to do.  Buffett likens reading to investing.  Build knowledge up, like compound interest by reading diverse information every day.

Focus is also vital.  Buffet separates his reading, financial statements, journals and reports in the office, newspapers and books at home.  He is a fast reader but also makes sure to focus on one material at a time.  When in the zone, he completely shuts off everything, closes his windows and focuses only on what he’s reading at that moment.

This is possible because he diversifies his reading research.  The journey is the reward so he reads what is interesting to him at work but also reads numerous newspapers that expand his horizons every day.  He says he doesn’t do very much of anything he doesn’t like to do.  He commands his time, but has a lot of fun doing it.

Buffett summarized his most basic beliefs of investing in an shareholder letter.  First, keep it simple and steady: “When promised quick profits, respond with a quick NO.”

Second,  focus on the big picture: “Focus on the future productivity of the asset you are considering. If you don’t feel comfortable making a rough estimate of the asset’s future earnings, just forget it and move on.”

Buffett also puts his money where his beliefs are.  “My money, I should add, is where my mouth is: What I advise here is essentially identical to certain instructions I’ve laid out in my will… Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. I suggest Vanguard’s. (VFINX)).”

Buffet’s biggest factor of success is the freedom to wake up every morning and work on something he is passionate about and that leaves him fulfilled.

The way to start Purposeful Investing is to decide exactly what you are passionate about and that will leave you fulfilled.

A good book to read, “Too Big to Fail” by Andrew Ross Sorkin provides  a snapshot of how Buffett conducts his research.

Purposeful, good value investing begins with passion, something fun and fulfilling that can also be worry free and profitable.  Following a routine of this type can help you create investing missions that help you profit as you achieve fulfillment of your purpose.

Learn more about the Purposeful investing Course here.

Gary

Gain Tax Cash


Reducing taxes increases cash.

Our recent message “A ratio that can make us rich” reveals a scientific study of Warren Buffet’s investing patterns and a ratio of leverage he uses to accumulate incredible wealth.

That study also uncovered another strategy that Buffett uses to assure his wealth.  The study says: “Buffett’s company has financed part of its capital expenditure using tax deductions for accelerated depreciation of property, plant and equipment as provided for under the IRS rules.”

The research showed that Berkshire had reported $28 billion of deferred tax liabilities in the year reviewed.

The papers conclusion was: Accelerating depreciation is similar to an interest free loan in the sense that Berkshire enjoys a tax saving earlier than it otherwise would have and the dollar amount of the tax when it is paid in the  future is the same as the earlier savings since the tax liability does not accrue interest or compound.

This is why I want you to read  7 Secrets to Paying Less Tax  for the One-Owner Business by Conrad Oertwig.

The report begins:  “There is only one secret to paying less tax and that is  knowledge.

“One hard fact of life is that taxes are cash.  It’s a mistake to think of taxes as taxes.  If you want to create more net worth, you need to think of taxes as cash.

“How much tax cash are you leaving on the table?  Thousands?  Tens of thousands?

“So, let’s explore 7 secrets (great pieces of knowledge) that will enable you to pay less tax, have more cash, and build net worth. I know that’s why you are here, so let’s get started.”

To read the entire report, click here.

Gary