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Updated Oct 16, 2014 by luis.d.c...@gmail.com

growth rate ( % increase of yearly dividends) / PE ratio //higher better

portfolios (min 20 securities low beta better)

beta - If a stock has a beta of 2.0. if the market goes up 10 percent, the stock tends to rise 20 percent. If a stock has a beta of 0.5, it tends to be more stable than the market (it will go up or down 5 percent

market/systemic risk (changes in national income, in interest rates, and in the rate of inflation) unsystemic risk (individual security)

Real Estate Investment Trusts (REITs)

invest in (but not too low) 1) low total capitalization 2.) low Price / Earning ratio 3.) low total capitalization to its book value (the value of the company's assets as recorded on its books) ratio 4/) high dividend /price ratio

40% - business 800k 24k 20% - real estate 400k 12k 20% - index funds 400k 12k 10% - cash 200k 6K 10% - discount closed-end funds 200k 6k

S&P 500 Fund (75% US market ex.Vanguard Tax-Managed Fund : income and growth) Wilshire 5000 Fund (Total Stock Market Portfolio) close-end fund (discount fund)

//if you want to play the game 1.) Confine stock purchases to companies that appear able to sustain above-average earnings growth for at least five years. 2.) Never pay more for a stock than can reasonably be justified by a firm foundation of value. 3.) It helps to buy stocks with the kinds of stories of anticipated growth on which investors can build castles in the air that really rest on a firm foundation. 4.) Trade as little as possible. I sell before the end of each calendar year any stocks on which I have a loss. The reason for this timing is that losses are deductible (up to certain amounts) for tax purposes

The game of investing is like lovemaking. It's much too much fun to give up. If you have the talent to recognize stocks that have good value, and the art to recognize a story that will catch the fancy of others, it's a great feeling to see the market vindicate you.

The purpose of going into business is to get free of a job so you can create jobs for other people. - Michael Gerber desiring riches with a state of mind that becomes an obsession, then planning definite ways and means to acquire riches and backing those plans with persistence which does not recognize failure, will bring riches - Napoleon Hill

if the thing you wish to do is right and you believe in it go ahead and do it

no one is ready for a thing until he believes he can acquire it

our only limitations are those we set up in our own minds

desire backed by faith knows no such word as impossible

there is nothing which belief plus burning desire cannot make real.

faith is a state of mind which may be induced by auto-suggestion

if a man repeats a lie over and over he will eventually accept the lie as truth

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