We all have heard the saying "it takes money to make money" but is that all it takes? Do you actually need money to make money if so do you need lots of it?
Becoming wealthy is a state of mind it usually does not happen as a result of someone handing you $50,000 to get you started. If that were the case most of us would not have a chance to attain wealth.
There isn't a universal way to become financially independent but there are some shared characteristics that can take you there. At some point or other taking risk is a must to rid you from a 9-5 steady income into a larger income status.
What separates the wealthy from the masses is a unique way of thinking. It isn't an inheritance or access to huge sums of money although that can help. A wealthy person thinks big and does not hold himself back. The rich & savvy have good money management skills and set out a plan which they carry out. They fall and get back up to try again. Using this formula low income individuals have ascended from lower class to become part of the nouveau riche.
If individuals with poor spending habits were to come across a large amount of money they would probably end up in more debt or with little progress if at all. They would need to change their lavish spending styles and fix their money management skills to make good use of their resources. On the other hand you can give a $1000 - $5000 loan to someone with a wealthy mentality and have her turn an idea or venture into a million dollar company like Barbara Corcoran the real estate mogul did.
If you don't have much money or do have savings realize that becoming wealthy comes from within and it eventually becomes a reality when you allow it. The exciting part is that it can come in different ways at different times. Becoming wealthy can be the result of a strong network, a loan, a stock investment, real estate, an invention, advertising, education, intellectual property or a small business. The point is you have to start and take action in your life. Hang out with people that are wealthy see how they think, if they are not in your immediate network then read about them.
Then there is the black swan the one that defies the norm like Sara Blakely who became wealthy by starting her business with her life savings of $5000 and turned it into a billion dollar company. She started Spanx a hosiery company with no outside investments or advertisement. Sara is the youngest female self made billionaire in the world and she owns 100% of her company.
Tuesday, May 15, 2012
In the past year Pfizer (PFE) has moved pretty close with the Dow. When stocks crashed last summer so did Pfizer but it did recover fairly well. From December 2011 it has taken off and it has outperformed the Dow. Although the company lost some revenue due to the expiration of some of its best selling drug patents it has mostly stayed in the green and has not dropped much despite European news worries. Pfizer gets about a quarter of its revenue from Europe.
Trading at 22.30 and with a dividend yield of 3.90 it offers a good play for those who want to diversify their portfolio. Volatility has been picking up especially in the financial stocks. European concerns that won’t go away point to a tough summer. We may repeat the roller coaster ride we had last year or even worse if Greece is dropped from the eurozone, but adding this pharmaceutical with a beta of .70 can be a good move going forward as this stock has good possibilities in the long term. One thing to keep in mind is that when major European indices drop one can usually find a pharmaceutical as one of the day’s top performers.
Healthcare & Big Pharma Stocks are good buys during hard economic times. In the coming years innovation will help companies find effective treatments at a faster pace. Pfizer was able to speed up the clinical trials and bring to market Xalkori in 4 years instead of having to wait decades using the research models of the past. This is a new era that will lower the astronomical costs of drug testing and will allow companies to bring drugs to patients at record speed. As Pfizer focuses on treating more promising diseases such as cancer and Alzheimer's picking up the stock on these market drops is a good idea.
Sunday, May 6, 2012
Sweden has had a good run financially with its neutral position in the world and a highly skilled labor force. In 2008 the global crisis lowered demand for Swedish exports and caused the country to enter a recession. Sweden came back strong in 2010 as a result of the high demand for its commodities and high returns by Sweden's banking sector. The government is considering a stimulus in 2012 to shield against the global slowdown to sustain healthy employment and growth according to The World Factbook.