I am excited that one of my favorite authors has started a blog! The author of one of the best books I've ever read on making money, Rich Dad, Poor Dad, now shares his current views on our economic situation and continues to educate people on making money.
If you want to check it out, you can find the RichDad blog at:
http://richdadblog.blogspot.com/
Definitely recommended reading!
Thursday, April 24, 2008
Wednesday, April 23, 2008
The Blue Collar Investor: The High Price of Oil
I first wrote about the high price oil back on January 4th of this year in
The Blue Collar Investor: The High Price of Oil
When I wrote about what was driving the market, I discussed commodities traders as being behind a lot of the rise in prices. If you found this article interesting, you might like to read the article on CNBC.com
http://www.cnbc.com/id/24032497
It too, talks about the price of oil being bid up as investors have fled to commodities as a hedge against inflation. Frankly, I believe that they are in for a big let down. Once again, it's supply and demand and the market will find a price where the demand will begin to drop. I think we are near that price. We'll have to wait and see.
The Blue Collar Investor: The High Price of Oil
When I wrote about what was driving the market, I discussed commodities traders as being behind a lot of the rise in prices. If you found this article interesting, you might like to read the article on CNBC.com
http://www.cnbc.com/id/24032497
It too, talks about the price of oil being bid up as investors have fled to commodities as a hedge against inflation. Frankly, I believe that they are in for a big let down. Once again, it's supply and demand and the market will find a price where the demand will begin to drop. I think we are near that price. We'll have to wait and see.
The Blue Collar Investor: Don't Be Totally Dependent on Your Job
Just in case my article on my new job leads the readers to think that I've forgotten that I wrote about not being totally dependent on your job,
The Blue Collar Investor: Don't Be Totally Dependent on Your Job
I wanted to add a few things. While I am enjoying my new job, I have also been very busy building my own small business part time. I am doing quite a lot of contract jobs on my own, mostly service type work. Since I started building my own business a few years back, I'm finding it easier to pick up extra work and add additional income to put towards building my asset column. All money I make outside my regular job goes toward building my investments in one way or another. So even though I'm very happy about the new job, I am still working towards my goal of not needing a job at all.
The Blue Collar Investor: Don't Be Totally Dependent on Your Job
I wanted to add a few things. While I am enjoying my new job, I have also been very busy building my own small business part time. I am doing quite a lot of contract jobs on my own, mostly service type work. Since I started building my own business a few years back, I'm finding it easier to pick up extra work and add additional income to put towards building my asset column. All money I make outside my regular job goes toward building my investments in one way or another. So even though I'm very happy about the new job, I am still working towards my goal of not needing a job at all.
Tuesday, April 22, 2008
The Blue Collar Investor: My Investment In AT&T
If you read my post on April 3rd of this year about my investment in AT&T
The Blue Collar Investor: My Investment In AT&T
you might find this article on CNBC.com of interest.
http://www.cnbc.com/id/24251334
It's nice to see that some of the stocks that I've chosen for my core holdings are doing well. Makes me feel like I'm on the right track. It seems, the more I learn about stock analysis, the easier it is to pick stocks with consistent earnings and ones that are able to support increasing dividend payouts.
The Blue Collar Investor: My Investment In AT&T
you might find this article on CNBC.com of interest.
http://www.cnbc.com/id/24251334
It's nice to see that some of the stocks that I've chosen for my core holdings are doing well. Makes me feel like I'm on the right track. It seems, the more I learn about stock analysis, the easier it is to pick stocks with consistent earnings and ones that are able to support increasing dividend payouts.
Sunday, April 20, 2008
My New Job!
One of my goals for 2008 was to get a new job. I'd been at my old job for almost 9 years and it was pretty much a go no where situation. I felt the need for a change and I realized that if I wanted to accomplish my goal of building personal wealth, I would have to move on. I'm happy to report that I have a new job!
I'm still working in the restaurant business, but I started as an assistant manager on the new job. I've been there for 3 weeks now and things are going great! I'm enjoying going to work again. I feel like I've got a lot more opportunity with this company than with my old job. The franchise owners are growth oriented, with plans for expansion to several locations throughout the state. The corporation itself has plans for expansion nationwide, so I feel like I'm on the ground floor with a lot of opportunities ahead of me. I can see this move as the start of something great as far as my professional life, but it will also benefit my plans for building residual income from my investment portfolio. What's really exciting about this situation is that I've done it once before with fantastic results. When I lived in Georgia, I went to work for a struggling restaurant operation as an assistant manager and helped turn the place around. We went from last place in sales in a franchise chain of 12 restaurants, to second place, only behind the training store. I was in a position then to take over as general manager, but decided to move back to Missouri before I was promoted. Now I'm basically in the same position. If things work out the way the owners want them to, our general manager will move on to open the next restaurant, being promoted to district manager and I will take over as general manager with a nice boost in pay! Only 3 weeks on the job, we've already boosted sales and are well on the way to a profitable operation. So I'm thinking that opportunity sometimes does knock twice. This time I intend to see it through.
As my income from the new job increases, the additional money will go straight in to my investment accounts. If everything works out, I would only need to work another 5 to 10 years and I would be free to retire. However, I'm enjoying the new job so much I could see working longer. The bottom line is that I've accomplished one more goal on my action plan for 2008. Just got to keep working the plan and reaching the goals, then I'll set new ones and go from there.
I'm still working in the restaurant business, but I started as an assistant manager on the new job. I've been there for 3 weeks now and things are going great! I'm enjoying going to work again. I feel like I've got a lot more opportunity with this company than with my old job. The franchise owners are growth oriented, with plans for expansion to several locations throughout the state. The corporation itself has plans for expansion nationwide, so I feel like I'm on the ground floor with a lot of opportunities ahead of me. I can see this move as the start of something great as far as my professional life, but it will also benefit my plans for building residual income from my investment portfolio. What's really exciting about this situation is that I've done it once before with fantastic results. When I lived in Georgia, I went to work for a struggling restaurant operation as an assistant manager and helped turn the place around. We went from last place in sales in a franchise chain of 12 restaurants, to second place, only behind the training store. I was in a position then to take over as general manager, but decided to move back to Missouri before I was promoted. Now I'm basically in the same position. If things work out the way the owners want them to, our general manager will move on to open the next restaurant, being promoted to district manager and I will take over as general manager with a nice boost in pay! Only 3 weeks on the job, we've already boosted sales and are well on the way to a profitable operation. So I'm thinking that opportunity sometimes does knock twice. This time I intend to see it through.
As my income from the new job increases, the additional money will go straight in to my investment accounts. If everything works out, I would only need to work another 5 to 10 years and I would be free to retire. However, I'm enjoying the new job so much I could see working longer. The bottom line is that I've accomplished one more goal on my action plan for 2008. Just got to keep working the plan and reaching the goals, then I'll set new ones and go from there.
Sunday, April 13, 2008
My Latest Stock Find, New Zealand Telecom!
New Zealand Telecom (NZT on the NYSE) provides a full range of telecommunications products and services in New Zealand including local, national, international and value-added telephone services, cellular and other mobile services, data and internet services, equipment sales and installation. They are also the third largest telecom in Australia. I came across NZT while running a stock screening for high dividend stocks on CNBC's website. Only 4 stocks met my search criteria, with NZT being the best of the four.
Their recent share price of $14.31 is well below the 52 week high of $22.07 and they currently have a price to earnings of 2.2 with a return on equity of 47.80%. Their price to book is only 1.77 and they currently have $3.18 per share in cash. The dividend per share is $1.05, which represents a 7.4% dividend yield. They have very little debt, so when you consider all these things together, their dividend should be quite sustainable with room for increases in the near future. The also retain sufficient earnings to provide for future expansion of business. So while I found this stock while searching for a dividend play, it also fits in well as a growth stock.
To fund my purchase of NZT I sold my shares in Sara Lee (SLE) and Merchants Bank of Vermont (MBVT). While I still consider both of those companies as good long term investments, I think investing in NZT will better fit my current investment goals as far as increasing dividend income and building my cash reserves in my money market account. I also feel that NZT has a much better chance of increasing share price, providing for future capital gains. I've already placed the order to buy NZT when the market opens Monday morning. I think they will make a wonderful addition to my portfolio.
Their recent share price of $14.31 is well below the 52 week high of $22.07 and they currently have a price to earnings of 2.2 with a return on equity of 47.80%. Their price to book is only 1.77 and they currently have $3.18 per share in cash. The dividend per share is $1.05, which represents a 7.4% dividend yield. They have very little debt, so when you consider all these things together, their dividend should be quite sustainable with room for increases in the near future. The also retain sufficient earnings to provide for future expansion of business. So while I found this stock while searching for a dividend play, it also fits in well as a growth stock.
To fund my purchase of NZT I sold my shares in Sara Lee (SLE) and Merchants Bank of Vermont (MBVT). While I still consider both of those companies as good long term investments, I think investing in NZT will better fit my current investment goals as far as increasing dividend income and building my cash reserves in my money market account. I also feel that NZT has a much better chance of increasing share price, providing for future capital gains. I've already placed the order to buy NZT when the market opens Monday morning. I think they will make a wonderful addition to my portfolio.
Thursday, April 3, 2008
My Investment In AT&T
I've held shares of AT&T stock in my portfolio off and on for the past 3 years. Early last year I sold all shares, which I had purchased when the price was down, at around a 25% profit. I had already gotten paid several quarters worth of dividends and got an additional cash and stock payout when my shares in the original AT&T were bought out by SBC communications. I thought SBC had the right idea to change their name to AT&T when the buyout was complete. After all, if you wanted a franchise type name and a name with some great history behind it, you couldn't ask for a much better than AT&T.
At any rate, I sold my shares out to take the profit on the increased stock price, figuring that I could buy back in on a price drop and make the company one of my core holdings. Sure enough the price did go down and I was able to buy back more shares than I owned originally. Barring any unforeseen occurrences I think the company will do well for several years to come. They currently pay $1.60 per share in dividends, which represents a 4.1% yield on their recent price of $38.72 per share. Their earnings per share of $1.94 should be more than adequate to maintain the dividend and fund operations. In addition the company has very little debt, a great management team and an exclusive contract with Apple for the iPhone, so I'm thinking things are looking pretty good for future profits. While the share price is down some from the 52 week high of $42.97, I've found that it has added some stability to my portfolio during the current drop in the overall stock market.
What makes this investment even more appealing for me personally is the fact that I have been a customer of AT&T for the past 2 years. All my personal phone service is through them and I've been extremely happy with their service. I got a great deal for my cell phone package over the Internet which included a free Motorola Razor V3. So every month when I go online to pay my bill I really don't mind so much, because I know I'm going to get some of that money back in the form of dividends each quarter. What could be better than that?
At any rate, I sold my shares out to take the profit on the increased stock price, figuring that I could buy back in on a price drop and make the company one of my core holdings. Sure enough the price did go down and I was able to buy back more shares than I owned originally. Barring any unforeseen occurrences I think the company will do well for several years to come. They currently pay $1.60 per share in dividends, which represents a 4.1% yield on their recent price of $38.72 per share. Their earnings per share of $1.94 should be more than adequate to maintain the dividend and fund operations. In addition the company has very little debt, a great management team and an exclusive contract with Apple for the iPhone, so I'm thinking things are looking pretty good for future profits. While the share price is down some from the 52 week high of $42.97, I've found that it has added some stability to my portfolio during the current drop in the overall stock market.
What makes this investment even more appealing for me personally is the fact that I have been a customer of AT&T for the past 2 years. All my personal phone service is through them and I've been extremely happy with their service. I got a great deal for my cell phone package over the Internet which included a free Motorola Razor V3. So every month when I go online to pay my bill I really don't mind so much, because I know I'm going to get some of that money back in the form of dividends each quarter. What could be better than that?
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