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Your Best Investment, Good Times or Bad

26.11.2008
 
Pages: 12
Your Best Investment, Good Times or Bad

by Mark S. McGrew

The best investment that you could possibly make is the one that you want to do.

Any successful business is the right combination of people, project and money.

If you have the money to invest, but don’t know the people, at the least, you better know the project. And vice versa, if you don’t thoroughly understand the project, but you do know the people and their abilities and you know beyond a shadow of a doubt that you can trust them, then put the money up, back away and let them do their job.

Fortunes have been made in endeavors that all the financial experts of the time said had no hope. The internet is only one example. Then the internet spawned individual websites. As recent as 1990, experts ridiculed the internet as a way to make money.

Expert advice is not the answer to making a good investment. Your lawyer’s best advice is “Don’t do it”. He doesn’t want to get sued if it goes sour. Stock brokers have the same mentality as used car salesmen. They will tell you anything to get your money to pay for whatever “habit” is in vogue. They are no different than some slut in a back alley selling you whatever she can to pay for her addiction. And like the lawyers and broker experts, she also will not tell you the various exotic diseases that she is carrying. It’s bad for business.

In the 1970’s and 1980’s that habit was cocaine. Sniffed, smoked or shot up. Cocaine fueled a vigorous investment market and as many older car sales managers can tell you, it was cocaine that powered the car sales. In the late 1990s and for the past few years, we have seen stories on rampant heroin usage on Wall Street. Cocaine is an excitable drug and a drug that creates excessive urgency in the user, “Get a deal. Get a check. Go Go Go!”. Heroin though, creates a euphoria, “Nah dude………..it’s fine……..relax man………..it’ll work out bro…”.

Where is the coincidence that in the 1980’s America’s economy was booming and twenty years later it is crashing like a junkie with an overdose? Many economists credit Ronald Reagan for the 1980’s growth. People in the actual bull pits, thrashing in the fray, whether they used artificial stimulants or not, will most likely say, “Nah…it was a dope deal”.

Many fortunes have been made investing in drugs. But are you willing to pay the time for doing the crime? Drug dealing is not for the feint at heart and is best not considered by a passive investor. As a hands-on investor, your risk is your money, your freedom and your life.

The Wall Street wolves today do not wear sheep’s clothing. They are dressed in the shepherd’s frock. And as the once $700 billion, now $3 trillion bailout shows, they carry his staff as well. You are a free spirit. As free as the birds in the sky, the animals of the forest and the fish in the seas. You do not need “experts” to tell you what is good for you, any more than God’s other creatures do. But just as all creatures instinctively know, you too, need to be aware of predators and how to protect yourself. This also, is something that can be learned.

If you are successful enough in your current job and you do have excess cash to invest, you probably studied hard, worked hard and took your job very seriously in making that extra money. It is the same with investing. It is imperative that you know either the players very well or are yourself an expert at the project you are considering.

But what if you don’t have special knowledge of a particular investment offering? What if you don’t know any people trying to build something that you have detailed knowledge of?

Then you seek and find. Real Estate in most markets has tanked. Some areas are in full swing. Seek them out. Commodities are a strange breed, operating under the ancient law of supply and demand. But that law, like many laws is manipulated by power players. Stocks bit the dust, but some are booming. Most paper investments have crashed and will crash further, because their value is based on a virtual reality mentality of the managers.

Gold never has been a stable long term investment, as people who bought at $900 a few months ago have lost 30% of their investment. But that may change. Historically, since Biblical days, a one ounce gold coin would buy a well dressed man a very nice suit. Today, it would take two or three gold coins for a well dressed man to buy a nice suit.

And it may not change. In mid-November Iran announced they were buying $75 billion of gold. A few days later, China news reported that China was considering increasing their gold holdings by 4 tons. Gold prices rose, from $740 to only $820, still lower than a ten year high of $1,000 in 2007.

The very best investment that will make you money in good times and bad is the single most valuable, most necessary commodity in all of Earth’s history. The wheels of civilization would grind to a halt without petroleum.

Pages: 12
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