Share the Profits! is divided into four sections. The first section explores why most investors lose money. Knowing why most public investors lose money in the stock market allows for creation of a more insightful investment system. The author explains the Buy, Hold, and Collect investment system. Challenges and pitfalls likely to be encountered by the public investor are addressed. This is a strategy that middle class investors can use to accumulate wealth for retirement, college educations, and paid-for-homes. The reader is also warned about the most unethical, but legal business process that unscrupulous owners use to fleece investors. Many times they actually enlist unaware investors to support them in doing it!
The second section shows how to protect your investments. The limits of investor due diligence are explained. Reducing your chances of being swindled is covered in depth.
The third section contains many articles that enable the middle class person to develop the right mindset for being a Buy, Hold, and Collect investor. Many times we hear that “stocks are going up”, when in fact the proper statement is that stock indexes are going up. Unfortunately this does not mean that all stocks are going up. “How To Rig an Index” explains what is going on. The reason for understanding the index FIB (factor of index brevity) is to avoid basing your investment strategy on an incorrect premise.
The financial system challenges us with many illusions. The roles of employee, citizen, owner, and investor are clarified. What is good for the first three is not necessarily good for the investor. Sometimes this overlap of roles confuses our investment perspective.
Typical economic news topics are discussed from the viewpoint of what middle class investors should worry about and what they should not to worry about.
If you were given a choice between a balanced budget, low inflation, a strong dollar, and a strong economy which would you pick as a goal? During the early phase of the Great Depression our government chose a balanced budget as the goal. This took more money out of the economy and made the depression worse. Now our government has picked low inflation as the goal for the FED (Federal Reserve Board). How does this affect you?
The forth section discusses the single greatest force in American and world economics during the first half of the 21st century. It is not war, inflation, or cheap labor from emerging nations. This force affects every investor and determines the overall direction of interest rates and which types of stocks are likely to appreciate.
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