Investing money - reading Rich Dad Poor Dad

[Julius_Seizeher]

Most of my contemporary advisors, myself included, have our long-term money in mutual fund vehicles of one sort or another (IRAs, 401Ks, sponsored annuities, etc.) and many of us have our cash in municipal money markets. As I have wondered, it is now true; I read today of how the government has turned a blind eye to banks selling these things to anybody, munis have been enormously popular savings vehicles.

You would think government debt just *might* be regulated but apparently not, instead they regulate the living hell out of everybody else and now they are going to pull the plug on muni bonds...

But MetalFortress introduces a valid point, now is exactly the time to take a serious look at individual stocks. So we are on the same page, I will say this: most serious investors of a high net-worth have the lions share of their portfolio in big-time securities like hedge funds and long-term bonds. These investments are not for the faint of heart, and are really only suited to someone who is wealthy and able to take big risks with lots of money. Many own individual stocks with their "play money". Make no mistake, individual stocks are tantamount to going to the track and betting it all on #7, though this risk is, of course, relative to the % of net-worth you have in it.

That being said, those of us who are young and not rich yet are ideal candidates to put our nuts on the line with individual stocks, provided we are aware of the risk we are taking. Like my man said, this crisis at Toyota is a potential gold mine, and I am willing to put my money where my mouth is. Toyota is the strongest manufacturer in the world, this thing is the perfect kind of hiccup that creates profound investment opportunities for guys like you and me.

I am also highly interested in the energy sector, I see earth-shattering returns there as things develop. I shall devote more time to studying this sector.

 

[synergy1]

Like my man said, this crisis at Toyota is a potential gold mine, and I am willing to put my money where my mouth is. Toyota is the strongest manufacturer in the world, this thing is the perfect kind of hiccup that creates profound investment opportunities for guys like you and me.

Man, If toyota was anything but a car manufacturer, I would have gobbled up a ton of stock on the bad news. Perfect buying situation - fundamentally strong company with a setback that isn't related to its overall business plan. Sadly, I feel toyota is a commodity type product, and this can be reflected in their net margins over the past 10 years ( which have held relatively consistent). As is the case with manufacturing, they need to spend money just to keep up with everyone else.

I am with metal fortress; I have a ton of money waiting to pull the trigger right now but everything is still over priced. Clearly not a buying situation. I wish I had put money in Goldman sachs and a ton of others that were dirt cheap in 2008.

I am also highly interested in the energy sector, I see earth-shattering returns there as things develop. I shall devote more time to studying this sector.

Energy can be summed up as: large, slim profit margins, vertically integrated and competitive. Returns on energy depend on everything else. For example, take co generation plants which offset coal by adding dry biomass such as wood. The return on co generation depends on logistics as it becomes more profitable when oil prices go up, but also becomes more costly when it costs more to transport the biomass...its an optimization game. As for the rest of the energy sector, I am leery since it is high capitol costs/ maintenance for a lot of these systems. The system we are developing has the potential to produce approx 5,000,000 USD worth of product yearly, but will cost a ton of design, build and maintain. All of that cuts into the bottom line....

A company I am eying right now for possibly buying public shares in is called NRG. They have a wide portfolio of products and seem to be growing. Oh, did I mention they are a pretty good bargain selling at under 10 P/E ??