How To Stay Ahead

To get positive cash/ savings accretion..Your Money Adjusted for:

-Taxes all- sales, city, state, federal, property
-inflation
-weak currency/ lower purchasing power
-personal expenses

What you have to do...

1) Invest in companies with a return on equity above 20%...so your equity doubles every 3.5 years
-Invest in companies that have true free cash flow yields above 10% per share
-Work within the current tax code to achieve qualified dividend income and long term capital gains
-Only invest in leadership companies or strong number 2 companies...they have the best balance sheets, managements and products
-Look for long term track records to confirm these statistics

2) Timing

You want to be in the market fully invested in rising markets (long term) like now 2003 to date and out of the markets when they are correcting (long term) like 2000 to 2003.

- Always be prepared and capable to buy into a major short term correcting (one to three months) market like last summer 2006 and this past summer 2007. These situations many times offer the best buying opportunities as everyone has become too short term focused and scared.

3) Manage and harvest about 10 to 20% of your capital gains each year. Don't wait until the fourth year in a cycle because your sell disciplines will be severely compromised to realize or experience a material tax liability.

4) Only work with the top accountants, lawyers, bankers and brokers...only the most successful investors do this...too many times we see mediocrity and people unwilling to change long term relationships because of friendship....this has been a major experience for us. Always use a change for an upgrade...like a team...the coach would never settle for less...why would you??

5) Think globally and be willing to change direction, learn from mistakes and make fewer ones as you move forward.

6) Interestingly and unremarkable fewer than 1% of the investing population understand these basic principles and practices them.

7) Stay close to smart successful people and ask them how they do it...very key!

8) Concentrate your five favorite names to about 20 to 40% of your portfolio

The market continues to confound the skeptics. People ask why is the market up..it shouldn't be up...it must go down...record short interest has yet to start covering their poor bets, record cash on the sidelines has yet to enter the markets...the market continue to climb the wall of worry.

The key themes, hydrocarbon scarcity, agriculture (all thing related) and infrastructure as the global build out is leading the way.

Danny Boy seen here is looking sharp, he has a good team supporting him.